Regional subsidiaries

The Local Government Act 1995 provides that that two or more local governments may establish a separate legal entity known as a regional subsidiary that is:
  • managed by a skills-based board
  • governed by a charter approved by the Minister.

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.

Structure

Tranche 2

Status: Regulations being developed

Commencement: To be confirmed

What is proposed?

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.

How these changes help

These reforms aim to enable greater flexibility in how a regional subsidiary is structured to deliver for its local governments and communities.

Employment principles and long service leave

Tranche 2

Status: Regulations being developed

Commencement: To be confirmed

What is proposed?

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.

How these changes help

These changes mean more consistent employment principles in the sector and that long service leave will be portable between regional subsidiaries and local governments.

Borrowing

Tranche 2

Status: Regulations being developed

Commencement: To be confirmed

What is proposed?

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.

How these changes help

These reforms aim to enable greater financing options for a regional subsidiary's activities, including the potential for a regional subsidiary to borrow against freehold land.

Land transactions and trading undertakings

Tranche 2

Status: Regulations being developed

Commencement: To be confirmed

What is proposed?

Amendments to the Act propose to enable regulations to set out that regional subsidiaries may undertake activities for profit or engage in land transactions. This means that a regional subsidiary may be able to engage in the purchase, sale or leasing of land.

How these changes help

These changes are intended to provide regional subsidiaries with greater potential for local governments as a means of delivering for their communities.

Page reviewed 12 December 2024

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