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A regional subsidiary enables local governments to share resources and deliver shared services and activities.
Read more about regional subsidiaries under the current legislation.
The proposed reforms to regional subsidiaries aim to remove red tape and provide greater flexibility in the formation and operation of regional subsidiaries.
Status: Regulations being developed
Commencement: To be confirmed
Amendments to the Act propose to clarify that a regional subsidiary does not need to deliver services or activities in an equal or joint fashion. The amendments provide that financial contributions or involvement does not need to be equal between the local government participants.
These reforms aim to enable greater flexibility in how a regional subsidiary is structured to deliver for its local governments and communities.
Amendments to the Act propose to clarify that the employment principles that apply to a local government will extend to a regional subsidiary. In addition, amendments propose to enable the long service scheme of the local government sector to extend to regional subsidiaries.
Amendments to the Act propose to enable regulations to set out that regional subsidiaries may borrow money. This means that a regional subsidiary may be able to borrow money other than from its participating local government.
These changes are intended to provide regional subsidiaries with greater potential for local governments as a means of delivering for their communities.