Sign In

12 April 2016 Local Government CEOs and Elected Members Determination

Text Size a a a Print Print this page

Local Government CEO and EM Determination 12 04 2016 FINAL website.pdf 


WESTERN AUSTRALIA

SALARIES AND ALLOWANCES ACT 1975

DETERMINATION OF THE

SALARIES AND ALLOWANCES TRIBUNAL

FOR LOCAL GOVERNMENT

CHIEF EXECUTIVE OFFICERS AND ELECTED MEMBERS

Pursuant to Section 7A and 7B

12 April 2016

 

PREAMBLE

1. Section 7A of the Salaries and Allowances Act 1975 ('the SA Act') requires the Salaries and Allowances Tribunal ('the Tribunal') at intervals of not more than 12 months, to "inquire into and determine, the amount of remuneration, or the minimum and maximum amounts of remuneration, to be paid or provided to chief executive officers of local governments".

2. Section 7B(2) of the SA Act requires the Tribunal, at intervals of not more than 12 months, to inquire into and determine - 
the amount of fees, or the minimum and maximum amounts of fees, to be paid under the Local Government Act 1995 ('the LG Act') to elected council members for attendance at meetings;

  • the amount of expenses, or the minimum and maximum amounts of expenses,
    to be reimbursed under the LG Act to elected council members; and
  • the amount of allowances, or the minimum and maximum amounts of allowances,
    to be paid under the LG Act to elected council members.

CURRENT INQUIRY

3. In discharging its statutory requirement with respect to the remuneration of local government Chief Executive Officers (CEOs) and elected members, the Tribunal has:

  • advertised for public submissions;
  • invited local governments and regional local governments to raise any issues relevant to the remuneration paid to their CEO or to the determination of fees, expenses and allowances for elected council members;
  • met with representatives from 22 local governments in regional areas of WA;
  • surveyed local governments and regional local governments as to the remuneration being paid to CEOs and regarding the fees paid to elected council members;
  • considered relevant labour market and economic data; and
  • sought advice from the Statutory Adviser, Ms Jennifer Mathews, Director General, Department of Local Government and Communities (DLGC).

SUBMISSIONS

4. An advertisement calling for public submissions to the Tribunal's inquiry appeared in The West Australian newspaper on 15 February 2016, with a closing date of 18 March 2016, and on the Tribunal's website at http://www.sat.wa.gov.au/LatestNews/Pages/Default.aspx.  

5. On 9 February 2016, the Tribunal emailed local governments and regional local governments to invite submissions. The Western Australian Local Government Association (WALGA) and the Western Australian division of the Local Government Managers Australia (LGMA) were also invited to make submissions to the inquiry.

6. Local governments were provided with a template submission form to ensure the Tribunal was able to capture data on a broad range of issues including:

  • major growth and development;
  • significant social and economic issues;
  • significant demand to service and support non-resident needs;
  • high impact environmental management issues and responsibilities;
  • greater diversity of services delivered than normally provided by similar sized local governments;
  • recruitment issues;
  • remuneration issues; and
  • other distinguishing features.


7. A total of 16 submissions were received. No submissions were received from members of the public.

8. Aside from those local governments who requested an increase or maintenance in classification, matters raised in the submissions were:

  • the amendment of the 0.2% operating revenue limit on the Mayor/President/Chairperson; and
  • the way that the Regional/Isolation Allowance is calculated.

     
9. The Tribunal considered all feedback received.

SURVEY

10. On 9 February 2016, a survey was provided to local government and regional local governments in order to obtain information relating to the remuneration provided to CEOs and the fees provided to elected members

11. Only four of the 147 local governments failed to respond to the survey, as identified in the determination.

ASSISTANCE FROM STATUTORY ADVISOR

12. The Tribunal sought advice from Ms Jennifer Mathews, Director General, DLGC, who was appointed by the Premier under section 10(4)(c) of the SA Act, to assist the Tribunal in its inquiries into to the remuneration of local government and regional local government CEOs.

CONSIDERATIONS


13. In undertaking this determination, the Tribunal is mindful of the magnitude and complexity of the local government sector. There are 138 local governments and 9 regional local governments in WA, which in 2014-15 accounted for a total operating and capital expenditure of approximately $6.4 billion. There are approximately 16,000 Full Time Equivalent (FTE) employees spread across geographic areas ranging from 1.5 square kilometres to 371,696 square kilometres.

14. The Tribunal has taken into account sections 2.7 to 2.10 and 5.41 of the LG Act which outlines the roles and responsibilities of local governments, councillors, mayors, presidents and their deputies and the functions of local government CEOs.

15. The information received from individual local governments, CEOs and the Statutory Advisor ensures the Tribunal is informed on developments across the sector.

Local Government population, expenditure and staff levels

16.  The Tribunal requested and received the following data from the DLGC:

  • Population as at 31 March 2015 (ABS Catalogue 3218.0);
  • Total FTE employees 2014-15;
  • Operating expenditure 2014-15; and
  • Three year averaged capital expenditure (2012-13 to 2014-15).

     

Labour market and economic data


17. The Tribunal's Determination issued in June 2015 reflected the serious challenges facing the Western Australian economy and provided no increase to the remuneration of CEOs or to the fees and allowances provided to elected members . 

18. The Tribunal has noted the Government's 2015-16 Mid-year Review and the Quarterly Financial Results Report - December 2015, published on 25 February 2016, which outlined the challenging economic and fiscal outlook of the state in general.

19. As reflected in Treasury information, the impact of these challenges is reflected across the community.  Employment figures show the slowdown in the domestic economy and employment growth is expected to slow in 2015-16.  Part-time hiring increased by 2.5% in annual average terms to October 2015, but growth in full-time hiring was much weaker at 1%.

20. The unemployment rate rose from 5.2% to 6.0% over the year to February 2016.  The seasonally adjusted participation rate in Western Australia decreased to 67.7% in February 2016, down from a rate of 68.2% in January.

21. In 2014-15, growth in household consumption fell to 1.1%, the lowest rate of growth in 25 years and outside the GFC period.  Discretionary spending has also been weak.

22. Business investment fell by 12.3% in 2014-15. This is a larger decline than the 10.5% fall estimated at Budget. It is also the second consecutive contraction in investment since it peaked at a record level of $78.7 billion in 2012-13.

23. Economic data released for December 2015 indicated that Perth's Consumer Price Index increased by 1.5% In year-ended terms.  Western Australia's Wage Price Index rose by 2.0% in annual average terms to December 2015, the lowest since the series commenced in 1998.  The Public Sector Wage Price Index increased by 3.2% in that period, but the Private Sector Wage Price Index increased more slowly, by 1.7%.

24. In statements supporting the release of the Public Sector Wages Policy Statement 2016, the Treasurer and Minister for Commence linked the Consumer Price Index to the State Government's decision to limit pay rises of 1.5% per annum for public sector employees, consistent with the Department of Treasury's forecast of the CPI in 2015-16.  The policy will apply to all public sector industrial agreements expiring on or after 1 June 2016. While acknowledging that this policy does not apply to local governments, it does provide illustration around the community expectations for wages growth of government officers whose salaries or fees are derived from taxes or rates.

Band allocation model

25. The Tribunal continues to utilise the four band classification model adopted in its 2012 determination. The model provides for a range of factors to be taken into account including:
  • major growth and development;
  • strategic planning, including risk management;
  • infrastructure development and asset management;
  • significant social/economic/environmental issues;
  • significant demand to service and support non-resident needs;
  • diversity of services;
  • community involvement and advocacy;
  • state or national negotiations;
  • operational and managerial requirements;
  • capacity to pay;
  • total expenditure;
  • population; and
  • FTEs.

     
26. The Tribunal considered all local governments and regional local governments placed near the top or bottom of a band with the potential to change bands, regardless of whether a submission was received. Particular attention was given to those local governments and regional local governments where expenditure, population and/or FTE figures had significantly increased over the 2014-15 financial year. This is based on the range of factors identified under the band allocation model and not just consideration of one or two indicators of growth in isolation. The Tribunal will continue to review the circumstances of regional and remote local governments to ensure that the particular issues relevant to those local governments are accommodated with the band allocation model.

27. The Tribunal emphasises that there is significant room for growth within each band before an increase in classification is warranted. A request for an increase in classification will only be recognised where it is demonstrated that the local government or regional local government has experienced a substantial and sustained increase in work value.

Training for elected council members


28. The Tribunal will continue to monitor outcomes of training programs for elected members during 2016-2017 with a view to considering future approaches.

Survey Results

29. The survey shows that the vast majority of CEOs (85%) are remunerated at either the middle (26-74th percentile) or top (above the 75th percentile) of their respective band ranges. Only four local governments reported a remuneration package in the bottom 25th percentile of their band ranges.

30. There are twelve local governments with a Preserved CEO currently remunerating above the determined range. Although Preserved CEOs, as defined by the LG Act, do not fall under the jurisdiction of the Tribunal, Local Governments are reminded that they are required by clause 43(4) of the LG Act to take into account any determination of the Tribunal when renewing a contract of a Preserved CEO.

31. In regards to Elected Members, the responses shows that all local governments provide fees within the bands determined by the Tribunal, as is required. Only one local government reported that it provides no payment to Elected Members. This indicates that the Members, acting independently, have waived their right to receive fees.

32. Forty-one of the 143 local governments that provided a response remunerate their members with a per meeting fee. Of these forty-one, four were Band 3 local governments, thirty-four were Band 4 local governments and three were regional local governments.

CEO Regional/Isolation Allowance


33. The Regional/Isolation Allowance is available to all local governments listed under Part 3 of this determination. The Allowance is discretionary and local governments have the flexibility to determine an appropriate payment not exceeding the maximum annual figure stated. 

34. All but one of the eligible local governments responded to the Tribunal's Survey. Of these, 24 provided information indicating that they were paying their CEO some form of Regional/Isolation Allowance. Eight CEOs reported receiving the maximum annual allowance. The total amount of Regional/Isolation Allowance paid ranged from $5,000 to $65,826. 

35. The Tribunal reminds eligible local governments that although the Regional/Isolation Allowance is additional to the TRP, it is to be paid as salary and may attract the superannuation guarantee. As the superannuation guarantee forms part of a CEO's TRP, caution should be taken to ensure that provision of this allowance does not result in the maximum of the awarded TRP range being exceeded.

36. When the Tribunal introduced the Regional/Isolation Allowance in 2012 it was designed to allow regional and remote local governments the ability to compensate for factors that affected their ability to recruit CEOs. These were:

  • Remoteness: Issues associated with the vast distances separating communities within a Local Government or distance of the Local Government from Perth or a Regional Centre;
  • Cost of living: The increased cost of living in some regional areas;
  • Social Disadvantage: The lack of specialist health services, schooling opportunities for children, employment opportunities for spouse, lack of lifestyle commodities found in Perth and regional centres and access to professional and personal support networks;
  • Dominant industry: The impact that a dominant industry such a mining or agriculture has on an area and the ability to attract and retain people in the face of a dominant industry;
  • Attraction/retention: being able to recruit suitably qualified candidates and being able to retain them in light of the above concerns in competition with positions in Perth, regional centres and private industry;
  • Community expectations: the pressure the above factors impose on a CEO where professional or operational expertise is not readily available.

     

37. The Allowance is designed to accommodate all of these factors. This approach is more relevant to Western Australia's circumstances compared to the Accessibility/Remoteness Index of Australia (ARIA) method, which was put forward in submissions. A local government that can demonstrate specific needs may apply to the Tribunal for a review of the amount determined.

38. The Tribunal has reviewed the allowance provided to the four Pilbara local governments. It found that the pressures on the recruitment and retention of CEOs due to the mining industry and cost of living pressures has been greatly reduced. This is reflected in the Cost of doing Business in the Pilbara – August 2015 publication from the Regional Development Australia – Pilbara which states:

"Investment in the resources sector has declined further, with a sharper decrease in construction activity. Employment and population growth have continued to slow down. As a result, as anticipated in the 2013 and 2014 reports, costs have fallen for some items, particularly the costs of accommodation and remuneration (wages and benefits) in all centres. This reduction in costs is a positive development and will eventually contribute to stabilising the economy and opening up opportunities."[1]

39. The report notes that while price pressures in the Pilbara remain high, they are reducing to the mean level after the historic highs that resulted from the mining boom. This has been reflected at the State government level where there has been significant reductions to the district allowance provided to public servants and special division office holders in the Pilbara.

Annual review process and provision of data to the Tribunal


40. The Tribunal will continue to request information annually regarding the amounts of fees, expenses and allowances paid to local governments and regional local government elected council members and remuneration provided to CEOs.

41. The Tribunal appreciates the feedback received regarding improvements to the questionnaire process and will look to implement these changes for the 2017 inquiry.

42.  Local governments and regional local governments are advised to record all figures for each elected member and CEO relevant to each section of the determination. 

CONCLUSIONS

43. The Tribunal has determined a general adjustment of 1.5 percent to the band ranges.

44. The Tribunal notes that a majority of local governments retain the capacity to provide an increase above this percentage within the current band parameters. Each local government must satisfy itself that there is sound justification to award any increase within their allotted band in the current economic climate.

45. The Tribunal has considered all local governments with potential to change classification by being upgraded or downgraded.  In reviewing the classification framework, band allocation model and all other relevant information, the Tribunal has upgraded the Cities of Albany, Bunbury and Busselton from Band 2 to Band 1. While the Tribunal acknowledges that other local governments have experienced differing levels of growth and increased complexity, it was considered that this growth can be accommodated within their existing band classification.

46. The CEO of the Murchison Regional Vermin Council has been classified for the first time upon advice that the position may be undertaken separately from its member council CEOs in the future.

47. The Tribunal has reduced the Regional/Isolation Allowance for the four Pilbara local governments by $10,000. Responses provided to the remuneration survey show that this will not result in a reduction of the actual remuneration provided to the current CEO as there was either sufficient space within the total reward package to accommodate the reduction or the CEO was a preserved CEO. The reduction brings the allowance more in line with other regional areas. The Tribunal will continue to monitor the economic conditions to determine if any further reductions are required in the Pilbara or other areas.

48. The Tribunal has removed the 0.2% of operating revenue limit on the Mayor/President Annual Allowance. Evidence showed that this limit only affected a minority of local governments and resulted in administrative difficulties. The Tribunal considers that the ranges provided in this determination are sufficient and is confident that each local government has the ability to set an appropriate amount within that range.

49. The Tribunal has made no further changes to its determination.

50. The Tribunal reinforces its preference for the reimbursement of actual expenses wherever possible and, accordingly, has maintained the annual allowances for information and communication technology (ICT) and travel and accommodation.  Although these annual allowances are to be paid in lieu of reimbursement of such expenses, the Tribunal maintains the fundamental principle that elected council members should not be out of pocket for expenses properly incurred in the fulfilment of their duties and that any expense incurred beyond the annual allowance amount received should continue to be reimbursed in accordance with the LG Regulations.

51. Nothing in this determination shall be interpreted and/or applied in such a manner as to circumvent the intention of the Tribunal to ensure transparency and accountability in the remuneration of Local Government CEOs and the provision of fees, expenses and allowances to elected members.

52. Information on the remuneration of CEOs and elected council members is available to the public under section 5.94 of the LG Act or through the minutes of council meetings.

53. In conclusion, the Tribunal would like to acknowledge those who assisted with this inquiry. Information provided enabled the Tribunal to appreciate the issues impacting various local governments and the sector generally, and also gain feedback regarding the effectiveness of its determinations. 

 

This determination will now issue.

Signed on 12 April 2016.

 

 

 

 

 
W S Coleman AMC A BroadbentB J Moore
CHAIRMANMEMBERMEMBER

SALARIES AND ALLOWANCES TRIBUNAL



 

 

 

 




 

DETERMINATION FOR LOCAL GOVERNMENT CHIEF EXECUTIVE OFFICERS


AND ELECTED MEMBERS PURSUANT TO SECTION 7A AND 7B OF THE


SALARIES AND ALLOWANCES ACT 1975


 

CONTENTS

Part 1:  Introductory Matters

    1.1       Short Title

    1.2       Commencement

    1.3       Content and intent

    1.4       Terms used

    1.5       Pro rata payments

    1.6       Local government band allocations

     

    Part 2:  Total Reward Package

    2.1       General

    2.2       Local Government classification

    2.3       Regional Local Government classification


    Part 3:  Regional/Isolation Allowance


    3.1       General

    3.2       Regional/Isolation Allowance

    Part 4:  Housing Allowance


    4.1       General

    4.2       Housing Allowance

    Part 5:  Motor Vehicle Allowance


    5.1       General

    5.2       Private benefit value

    Part 6:  Meeting Attendance Fees


    6.1       General

    6.2       Council meeting attendance fees – per meeting

    6.3       Committee meeting and prescribed meeting attendance fees – per meeting

    6.4       Annual attendance fees in lieu of council meeting, committee meeting and prescribed meeting attendance fees

    Part 7:  Annual Allowance for a Mayor, President, Chairman, Deputy Mayor, Deputy President and Deputy Chairman


    7.1       General

    7.2       Annual allowance for a mayor, president or chairman

    7.3       Annual allowance for a deputy mayor, deputy president or deputy chairman

    Part 8:  Expenses to be Reimbursed


    8.1       General

    8.2       Extent of expenses to be reimbursed

    Part 9:  Annual Allowances in lieu of Reimbursement of Expenses


    9.1       General

    9.2       Annual allowances determined instead of reimbursement for particular types of expenses

    Schedule 1:  Local Government Band Allocations

    Schedule 2: Local Government Non-respondents


    Explanatory Notes




 

PART 1:          INTRODUCTORY MATTERS


This Part deals with some matters that are relevant to the determination generally.

1.1 Short title

This determination may be cited as the Local Government Chief Executive Officers and Elected Members Determination No. 1 of 2016.

1.2 Commencement

This determination comes into operation on 1 July 2016.

1.3 Content and intent

(1) The remuneration listed in this determination comprises all remuneration as defined under the Salaries and Allowances Act 1975 as including salary, allowances, fees, emoluments and benefits.

(2) The determination applies to

a. Chief Executive Officers (CEOs);

b. Acting Chief Executive Officers; and

c. Elected Members

(3) The remuneration specified in this determination for CEOs is based on a person being appointed to one Local Government CEO position only. In the case of a person being appointed to undertake the duties of more than one CEO position simultaneously, the relevant Local Governments must seek a determination from the Tribunal for the multiple CEO positions held by that person.

(4) If a Local Government undergoes an amalgamation or a rezoning of Local Government boundaries, the Local Government is required to seek a new determination from the Tribunal.

(5) This determination provides for the amount of fees, expenses and allowances to be paid or reimbursed under the Local Government Act 1995 ('the LG Act') Part 5 Division 8 to elected council members. The determination applies to elected council members who are members of the council of a local government. Under the LG Act section 3.66, it also applies to elected council members who are members of the council of a regional local government.

(6) Where the Tribunal has determined a specific amount for a fee, expense or allowance for elected council members of a local government or regional local government, the amount determined by the Tribunal will be payable to an eligible elected council member.

(7) Where the Tribunal has determined a minimum and maximum amount for a fee, expense or allowance for elected council members of a local government or regional local government, each local government or regional local government council will set an amount within the relevant range determined and the amount set will be payable to an eligible elected council member.

(8) The fees, expenses and allowances determined are intended to recognise the responsibilities of elected council members, mayors and presidents of local governments and chairmen of regional local governments and to remunerate them for the performance of the duties associated with their office.

1.4 Terms used

In this determination, unless the contrary intention appears -

chairman means a person who is elected or appointed from among the members of a council of a regional local government as its chairman;

committee meeting means a meeting of a committee of a council where the committee comprises –

(a) council members only; or

(b) council members and employees of the local government or regional local government; 

council –

(a) in relation to a local government, means the council of the local government;

(b) in relation to a regional local government, means the council of the regional local government;

council member –

(a)   in relation to a local government –

(i)  means a person elected under the LG Act as a member of the council of the local government; and

(ii) includes the mayor or president of the local government;

(b)   in relation to a regional local government –

(i)  means a person elected under the LG Act as a member of the council of a local government and who is a member of the council of the regional local government; and

(ii)  includes the chairman of the regional local government;

LG Regulations means the Local Government (Administration) Regulations 1996;

mayor means a council member holding the office of mayor, whether elected by the council from amongst its members or elected by the electors;

president means a council member holding the office of president, whether elected by the council from amongst its members or elected by the electors.

1.5 Pro rata payments

The amount of a person's entitlement to remuneration, annual attendance fee or annual allowance specified in this determination shall be apportioned on a pro rata basis according to the portion of a year that the person holds office.

1.6 Local government band allocations

Unless the contrary intention appears, local governments are allocated in this determination to the bands set out in Schedule 1 of this determination. Regional local governments are allocated to a Band only in regards to CEOs.

PART 2: TOTAL REWARD PACKAGE

This Part deals with the remuneration payable to Chief Executive Officers.

2.1  General

(1) Offices listed in this Part have been assigned by the Tribunal to one of four classifications designated Band 1 to Band 4.

(2) Each classification (Band 1 to Band 4) has a commensurate Total Reward Package (TRP) range.

(3) Typical components of a TRP include:

a.  Base salary;

b.  Annual leave loading;

c.  Associated FBT accrued (total annual amount of fringe benefits tax paid by the Local Government for all fringe benefits provided to a CEO);

d.  Association membership fees;

e.  Attraction/retention allowance, not being provided under Schedule 2;

f.  Personal benefit value of the provision of a motor vehicle for private use (if applicable) as defined under Part 5 of this determination;

g.  Cash bonus and performance incentives;

h.  Cash in lieu of a motor vehicle;

i.  Fitness club fees;

j.  Grooming/clothing allowance;

k.  Health insurance;

l.  School fees and/or child’s uniform;

m.  Superannuation (all mandatory and non-mandatory employer superannuation contributions);

n.  Travel or any other benefit taken in lieu of salary;

o.  Travel for spouse or any other member of family;

p.  Unrestricted entertainment allowance;

q.  Utilities allowance (any water, power or other utility subsidy provided to the CEO); and

r.  Any other form of payment, in cash or not, in consideration of a reward or benefit of the CEOs duties.

 

(4) The only exclusions from the TRP are:

a.  The items listed in Parts 3, 4 and 5 of this determination (however, any superannuation guarantee associated with the payment of a Regional/Isolation Allowance and any associated FBT accrued from the provision of a motor vehicle or accommodation are to be included as part of the TRP);

b.  Employer obligations such as professional development (restricted to the CEO), reimbursement for genuine work expenses or the cost of recruitment and relocation expenses; and

c.  Those items that are considered to be a tool of trade by the Local Government (i.e. the equipment needed to undertake the duties of a CEO) and which are not a direct or indirect reward or benefit for the performance of duties as a CEO.

2.2       Local Government Classification

(1) The ranges of TRP in Table 1 apply where a local government or regional local government has been classified into the relevant band.

Table 1: Local Government band classification – Total Reward Package range

Band

Total Reward Package

1$247,896 - $375,774
2$204,455 - $316,586
3$156,356 - $256,711
4$126,956 - $198,210
 
(2) Local Governments have been classified in Schedule 1.


(3) Regional Local Governments have been classified in Table 2 below.

Table 2: Regional Local Government band classification

Regional Local Government

Band

Bunbury-Harvey Regional Council4
Eastern Metropolitan Regional Council2
Mindarie Regional Council3
Murchison Regional Vermin Council4
Pilbara Regional Council4
Rivers Regional Council3
Southern Metropolitan Regional Council2
Tamala Park Regional Council2
Western Metropolitan Regional Council4


(4) A person who holds a dual appointment of the CEO of the Shire of Cunderdin and the CEO of the Shire of Tammin, shall be entitled to receive a TRP range from the bottom of Band 4 ($126,956)  to a maximum of $218,031 (which represents the top of Band 4 plus 10%).


PART 3:          REGIONAL/ISOLATION ALLOWANCE

This Part deals with the Regional/Isolation Allowance that may payable to Chief Executive Officers from Local Governments identified in this Part.

3.1  General

(1) Local Governments listed under Table 3 in this Part have access to an amount additional to the Total Reward Package for CEO remuneration in recognition of the regional and isolation factors which may affect the attraction and retention of the CEOs of those Local Governments.

(2) Local Governments are not required to pay all or any of this amount and the payment of this allowance is at the discretion of the Local Government, albeit within the parameters set by the Tribunal

(3) When a Local Government chooses to use all or any of this allowance, the payment of the allowance should be properly justified and applied in a transparent manner.

(4) When a Local Government chooses to pay all or any of this allowance, it is to be paid to the CEO as salary.

3.2   Regional/Isolation Allowance

(1) Local Governments eligible to for the Regional/Isolation Allowance have been classified in Table 3 to follow.

Table 3: Regional/Isolation Allowance

Local Government

Maximum Regional/Isolation Allowance

Per Annum

Ashburton Shire$45,000
Broome Shire$35,000
Carnamah Shire$30,000
Carnarvon Shire$30,000
Chapman Valley Shire$30,000
Coolgardie Shire$30,000
Coorow Shire$30,000
Cue Shire$40,000
Derby-West Kimberley Shire$45,000
Dundas Shire$30,000
East Pilbara Shire$45,000
Esperance Shire$25,000
Exmouth Shire$35,000
Geraldton-Greenough City$25,000
Halls Creek Shire$65,000
Irwin Shire$30,000
Jerramungup Shire$25,000
Kalgoorlie-Boulder City$30,000
Karratha City$60,000
Kent Shire$10,000
Kondinin Shire$10,000
Kulin Shire $10,000
Lake Grace Shire$10,000
Laverton Shire$40,000
Leonora Shire$40,000
Meekatharra Shire$40,000
Menzies Shire$30,000
Merredin Shire$10,000
Mingenew Shire$30,000
Morawa Shire$30,000
Mount Magnet Shire$30,000
Mount Marshall Shire$10,000
Mukinbudin Shire$25,000
Murchison Shire$30,000
Narembeen Shire$10,000
Ngaanyatjarraku Shire$40,000
Northampton Shire$30,000
Nungarin Shire$10,000
Perenjori Shire$30,000
Port Hedland Town$60,000
Ravensthorpe Shire$30,000
Sandstone Shire$30,000
Shark Bay Shire$35,000
Three Springs Shire$30,000
Upper Gascoyne Shire$35,000
Westonia Shire$25,000
Wiluna Shire$40,000
Wyndham-East Kimberley Shire$45,000
Yalgoo Shire$30,000
Yilgarn Shire$25,000
 

PART 4:          HOUSING ALLOWANCE


This Part deals with the Housing Allowance that may be payable to Chief Executive Officers.

4.1    General

(1) In recognition of the need for Local Governments to provide accommodation as a result of a lack of suitable housing or recruitment issues, on either a permanent or temporary basis, Local Governments are able to utilise this allowance as required.

(2) When a Local Government chooses to utilise this allowance, the payment of the allowance should be properly justified and applied in a transparent manner.

(3) Any accommodation provided under this Part must be located within or adjacent to the Local Government Area within which the CEO is employed.

(4) Local Governments should tailor the provision of any housing allowance to suit their particular circumstances. This may include the CEO making contributions towards the cost of the accommodation.

4.2     Applicable Housing Allowance

(1) Where a Local Government owns a property and provides that property to the CEO for accommodation, the value of this accommodation will not be included in the Total Reward Package.

(2) For reporting purposes, the value of the Local Government owned property shall be valued at the annual Gross Rental Value of the property as determined by the Valuer General.

(3) Where a Local Government leases accommodation for the use of the CEO, the lease costs will not be included in the Total Reward Package.

(4)     For reporting purposes, the value of the Local Government leased property shall be the annual actual costs of the accommodation lease.

 

PART 5:          MOTOR VEHICLE


This Part deals with the provision of motor vehicles to Chief Executive Officers.

5.1     General

(1) For Local Governments listed in Table 3 under Part 3 of this determination, any motor vehicle provided to the CEO by the Local Government is to be considered a tool of trade (i.e. a tool needed to undertake the duties of a CEO in these Local Governments). Any private benefit of the vehicle will not be considered as part of the Total Reward Package.

(2) For Local Governments not listed in Table 3 under Part 3 of this determination, the private benefit value of any motor vehicle provided to the CEO by the Local Government is to be included in the Total Reward Package.

5.2     Private Benefit Value

(1) The private benefit value of the motor vehicle will be dependent on the type of motor vehicle provided, method of ownership (i.e. Local Government owned or leased), maintenance and running costs, insurance, any applicable luxury car tax and the amount of private use of the vehicle (i.e. non-business use).

(2) As a general rule, the private benefit value would be based upon the annual costs multiplied by the percentage of private use.

(3) Local Governments and CEOs will need to come to an agreement on the most appropriate way to record the amount of private use in order to calculate the private benefit value.

 PART 6:          MEETING ATTENDANCE FEES


This Part deals with fees payable to council members for attendance at council meetings and meetings as set out in section 5.98(1) and (2A) of the LG Act and regulation 30(3A) of the LG Regulations.

In particular it deals with fees for attendance at the following meetings –


 (a)     council meetings;

(b)     council committee meetings;

(c)     Western Australian Local Government Association (WALGA) Zone meetings;

(d)     Main Roads Western Australia Regional Road Group meetings

(e)     regional local government meetings where an elected council member is deputising;

(f)     meetings attended at the request of a Minister of the Crown;

(g)     meetings where an elected council member is a delegate of the council.

6.1     General

(1) Pursuant to section 5.98(1)(b) of the LG Act, a council member who attends a council meeting is entitled to be paid the fee set by the local government or the regional local government within the range determined in section 6.2 of this Part for council meeting attendance fees.

(2) Pursuant to section 5.98(1)(b) and (2A)(b) of the LG Act, a council member who attends a committee meeting or (at the request of the local government or regional local government) a meeting of a type prescribed in regulation 30(3A) of the LG Regulations is entitled to be paid the fee set by the local government or regional local government within the range determined in section 6.3 of this Part for attending committee meetings or, as the case requires, meetings of that type.

(3) Each of the following meetings is a type of meeting prescribed in regulation 30(3A) of the LG Regulations -

(a)     meeting of a WALGA Zone, where the council member is representing a local government as a delegate elected or appointed by the local government;

(b)     meeting of a Regional Road Group established by Main Roads Western Australia, where the council member is representing a local government as a delegate elected or appointed by the local government;

(c)     council meeting of a regional local government where the council member is the deputy of a member of the regional local government and is attending in the place of the member of the regional local government;

(d)     meeting other than a council or committee meeting where the council member is attending at the request of a Minister of the Crown who is attending the meeting;

(e)     meeting other than a council meeting or committee meeting where the council member is representing a local government as a delegate elected or appointed by the local government.

(4) Pursuant to section 5.99 of the LG Act, a local government or regional local government may decide by an absolute majority that instead of paying council members an attendance fee referred to in section 5.98(1) of the LG Act, it will pay all council members who attend council or committee meetings a fee set within the range for annual fees determined in section 6.4 of this Part.

(5) Regulation 30(3C) of the LG Regulations prevents the payment of a fee to a council member for attending a meeting of a type prescribed in regulation 30(3A) of those regulations if –

(a)     the person who organises the meeting pays the council member a fee for attending the meeting; or

(b)     the council member is paid an annual fee in accordance with section 5.99 of the LG Act; or

(c)     the council member is deputising for a council member at a meeting of a regional local government and the member of the regional local government is paid an annual fee in accordance with section 5.99 of the LG Act.

(6) In determining the fees set out in this Part, the Tribunal has taken into account a range of factors including –

(a)     the time required to prepare adequately for the meetings including consideration of agenda papers, site visits related to agenda items and consultation with council staff and community members;

(b)     the role of the council member, mayor or president including, but not limited to, representation, advocacy, and oversight and determination of policy and local legislation;

(c)     particular responsibilities associated with the types of meetings attended;

(d)     responsibilities of a mayor, president or chairman to preside over meetings; and

(e)     the relative "size" of the local government as reflected in the Tribunal's local government banding model.

(7) The Tribunal has not determined a specific meeting attendance fee for the purposes of section 5.98(1)(a) or (2A)(a) of the LG Act.

 

6.2    Council Meeting Attendance Fees - Per Meeting


(1) The ranges of fees in Table 4 and Table 5 apply where a local government or regional local government decides by an absolute majority to pay a council member a fee referred to in section 5.98(1)(b) of the LG Act for attendance at a council meeting.

Table 4: Council meeting fees per meeting – local governments

 

For a council member other than the mayor or president

For a council member who holds the office of mayor or president

BandMinimumMaximumMinimumMaximum
1$609$785$609$1,177
2$369$576$369$772
3$191$406$191$628
4$90$236$90$485

 

Table 5: Council meeting fees per meeting – regional local governments

 

For a council member other than the chairman

For a council member who holds the office of chairman

 MinimumMaximumMinimumMaximum
All regional local governments$90$236$90$485

 

6.3     COMMITTEE MEETING AND PRESCRIBED MEETING ATTENDANCE FEES – PER MEETING


(1) The ranges of fees in Table 6 and Table 7 apply where a local government or regional local government decides to pay a council member a fee referred to in –


(a)     section 5.98(1)(b) of the LG Act for attendance at a committee meeting; or

(b)     section 5.98(2A)(b) of the LG Act for attendance at a meeting of a type prescribed in regulation 30(3A) of the LG Regulations.

Table 6: Committee meeting and prescribed meeting fees per meeting – local governments

For a council member (including the mayor or president) ​ ​

BandMinimumMaximum
1$305$392
2$184$288
3$96$203
4$45$118
 

Table 7: Committee meeting and prescribed meeting fees per meeting – regional local governments

For a council member (including the chairman) ​ ​
 MinimumMaximum
All regional local governments$45$118
 

6.4       ANNUAL ATTENDANCE FEES IN LIEU OF COUNCIL MEETING, COMMITTEE MEETING AND PRESCRIBED MEETING ATTENDANCE FEES


(1) The ranges of fees in Table 8 and Table 9 apply where a local government or regional local government decides by an absolute majority that, instead of paying council members an attendance fee referred to in section 5.98 of the LG Act, it will pay all council members who attend council, committee or prescribed meetings an annual fee.

Table 8: Annual attendance fees in lieu of council meeting, committee meeting and prescribed meeting attendance fees – local governments

 

For a council member other than the mayor or president

For a council member who holds the office of mayor or president

BandMinimumMaximumMinimumMaximum
1$24,360$31,364$24,360$47,046
2$14,718$23,000$14,718$30,841
3$7,612$16,205$7,612$25,091
4$3,553$9,410$3,553$19,341
 

Table 9: Annual attendance fees in lieu of council meeting, committee meeting and prescribed meeting attendance fees – regional local governments
  

 

For a council member other than the chairman

For a council member who holds the office of chairman

 MinimumMaximumMinimumMaximum
All regional local governments$1,777$10,455$1,777$15,682


PART 7:          ANNUAL ALLOWANCE FOR A MAYOR, PRESIDENT, CHAIRMAN, DEPUTY MAYOR, DEPUTY PRESIDENT AND DEPUTY CHAIRMAN


This Part deals with annual allowances payable to mayors, presidents, chairmen and their deputies in addition to any entitlement to meeting attendance fees or the reimbursement of expenses pursuant to section 5.98 of the LG Act.

In particular, this Part deals with –

(a)  the entitlement of a mayor, president or chairman to an additional allowance; and

(b)  the discretion of a local government or regional local government to pay an additional allowance to a deputy mayor or deputy president or deputy chairman.

7.1       General


(1) Pursuant to section 5.98(5) of the LG Act, the mayor or president of a local government and the chairman of a regional local government are entitled, in addition to any fees or reimbursement of expenses payable under section 5.98(1) or (2), to be paid the annual allowance set by the local government or regional local government within the range determined in section 7.2 of this Part.

(2) Pursuant to section 5.98A(1) of the LG Act, a local government or regional local government may decide by an absolute majority to pay the deputy mayor or deputy president of the local government, or the deputy chairman of the regional local government, an allowance of up to the percentage that is determined by the Tribunal of the annual allowance to which the mayor or president of the local government, or the chairman of the regional local government, is entitled under section 5.98(5) of the LG Act. That percentage is determined in section 7.3 of this Part. This allowance is in addition to any fees or reimbursement of expenses payable to the deputy mayor, deputy president or deputy chairman under section 5.98 of the LG Act.

(3) In determining the allowances set out in this Part, the Tribunal has taken into account a range of factors including the following –

(a)     the leadership role of the mayor, president or chairman;

(b)     the statutory functions for which the mayor, president or chairman is accountable;

(c)     the ceremonial and civic duties required of the mayor, president or chairman, including local government business related entertainment;

(d)     the responsibilities of the deputy mayor, deputy president or deputy chairman when deputising;

(e)     the relative "size" of the local government as reflected in the Tribunal's local government banding model;

(f)     the civic, ceremonial and representation duties particular to the Lord Mayor of Western Australia's capital city.

 

7.2       Annual Allowance for a Mayor, President or Chairman


(1) The ranges of allowances in Table 10 apply where a local government sets the amount of the annual local government allowance to which a mayor or president is entitled under section 5.98(5) of the LG Act.

(2) The range of allowances in Table 11 apply where a regional local government sets the amount of the annual local government allowance to which a chairman is entitled under section 5.98(5) of the LG Act.

(3) Despite the provisions of subsection (1), the Perth City Council is to set the amount of the annual local government allowance to which the Lord Mayor is entitled within the range of $60,900 to $135,909.

Table 10: Annual allowance for a mayor or president of a local government

 For a mayor or president
BandMinimumMaximum
1$50,750$88,864
2$15,225$62,727
3$1,015$36,591
4$508$19,864

 

Table 11: Annual allowance for a chairman of a regional local government

  For a chairman
 MinimumMaximum
All regional local governments$508$19,864

  

7.3       Annual Allowance for a Deputy Mayor, Deputy President or Deputy Chairman


(1) The percentage determined for the purposes of section 5.98A(1) of the LG Act is 25 per cent.

 

PART 8:          EXPENSES TO BE REIMBURSED


This Part deals with expenses for which council members are entitled to be reimbursed pursuant to section 5.98(2) of the LG Act.

In particular, this Part deals with –

(a)  expense reimbursements prescribed specifically in regulation 31(1) of the LG Regulations that must be paid by a local government or regional local government when claimed by a council member (i.e. telephone and facsimile rental, child care and travel); and

(b)  expense reimbursements prescribed in general terms in regulation 32(1) of the LG Regulations that may be approved by a local government or regional local government and claimed by a council member.

8.1       General


(1) Pursuant to section 5.98(2)(a) and (3) of the LG Act, a council member who incurs an expense of a kind prescribed in regulation 31(1) of the LG Regulations is entitled to be reimbursed for the expense to the extent determined in section 8.2(1) to (5) of this Part.

(2) Regulation 31(1) of the LG Regulations prescribes the following kinds of expenses that are to be reimbursed –

(a)     rental charges incurred by a council member in relation to one telephone and one facsimile machine; and

(b)     child care and travel costs incurred by a council member because of the member's attendance at a council meeting or a meeting of a committee of which he or she is also a member.

(3) Pursuant to section 5.98(2)(a) and (3) of the LG Act, a council member who incurs an expense of a kind prescribed in regulation 32(1) of the LG Regulations is entitled to be reimbursed for the expense to the extent determined in section 8.2(6) to (8) of this Part.

(4) Regulation 32(1) of the LG Regulations prescribes the following kinds of expenses that may be approved by a local government for reimbursement –

(a)     an expense incurred by a council member in performing a function under the express authority of the local government;

(b)     an expense incurred by a council member to whom paragraph (a) applies by reason of the council member being accompanied by not more than one other person while performing the function if, having regard to the nature of the function, the local government considers that it is appropriate for the council member to be accompanied by that other person;

(c)     an expense incurred by a council member in performing a function in his or her capacity as a council member.


 

8.2       Extent of Expenses to be reimbursed


(1) The extent to which a council member can be reimbursed for rental charges in relation to one telephone and one facsimile machine is the actual expense incurred by the council member.

(2) The extent to which a council member can be reimbursed for child care costs incurred because of attendance at a meeting referred to in regulation 31(1)(b) of the LG Regulations is the actual cost per hour or $25 per hour, whichever is the lesser amount.

(3) The extent to which a council member of a local government can be reimbursed for travel costs referred to in regulation 31(1)(b) of the LG Regulations is –

(a)     if the person lives or works in the local government district or an adjoining local government district, the actual cost for the person to travel from the person's place of residence or work to the meeting and back; or

(b)     if the person does not live or work in the local government district or an adjoining local government district, the actual cost, in relation to a journey from the person's place of residence or work and back —

                               (i)     for the person to travel from the person's place of residence or work to the meeting and back; or

                              (ii)     if the distance travelled referred to in subparagraph (i) is more than 100 kilometres, for the person to travel

                                       from the outer boundary of an adjoining local government district to the meeting and back to that boundary.

(4) The extent to which a council member of a regional local government can be reimbursed for travel costs referred to in regulation 31(1)(b) of the LG Regulations is the actual cost for the person to travel from the person's place of residence or work to the meeting and back.

(5) For the purposes of subsections (3) and (4), travel costs incurred while driving a privately owned or leased vehicle (rather than a commercially hired vehicle) are to be calculated at the same rate contained in Section 30.6 of the Local Government Officers' (Western Australia) Interim Award 2011 as at the date of this determination.

(6) The extent to which a council member can be reimbursed for child care costs incurred in any of the circumstances referred to in regulation 32(1) of the LG Regulations is the actual cost per hour or $25 per hour, whichever is the lesser amount.

(7) The extent to which a council member can be reimbursed for intrastate or interstate travel and accommodation costs incurred in any of the circumstances referred to in regulation 32(1) of the LG Regulations is at the same rate applicable to the reimbursement of travel and accommodation costs in the same or similar circumstances under the Public Service Award 1992 issued by the Western Australian Industrial Relations Commission as at the date of this determination.

(8) The extent to which a council member can be reimbursed for any other cost incurred under regulation 32(1) of the LG Regulations is the actual cost upon presentation of sufficient evidence of the cost incurred.

 

PART 9:          Annual Allowances in Lieu of Reimbursement of Expenses


This Part deals with annual allowances that a local government or regional local government may decide to pay, pursuant to section 5.99A of the LG Act, to all council members in lieu of the reimbursement of expenses of a particular type under section 5.98(2) of the LG Act.

In particular, this Part deals with allowances to be paid instead of –

(a)     expense reimbursements prescribed specifically in regulation 31(1) of the LG Regulations that must be paid by a local government or regional local government when claimed by a council member (i.e. telephone and facsimile rental, child care and travel); and

(b)     expense reimbursements prescribed in general terms in regulation 32(1) of the LG Regulations that may be approved by a local government or regional local government and claimed by a council member.


 

9.1       General


(1) Pursuant to section 5.99A of the LG Act, a local government or regional local government may decide by absolute majority that instead of reimbursing council members under the LG Act section 5.98(2) for all of a particular type of expense, it will pay all council members, for that type of expense, the annual allowance determined in section 9.2 of this Part or, as the case requires, an annual allowance within the range determined in that section.

(2) Where a local government or regional local government has decided to pay council members an annual allowance for an expense of a particular type instead of reimbursing expenses of that type under section 5.98(2) of the LG Act, section 5.99A of the LG Act provides for reimbursement of expenses of that type in excess of the amount of the allowance.

(3) In determining the maximum annual allowance for expenses of a particular type, the Tribunal has taken into account a range of factors including the following:

(a) the intent of the allowance to reflect the extent and nature of the expenses incurred and not to result in a windfall gain for council members;

(b) the capacity of local governments to set allowances appropriate to their varying operational needs;

(c) the particular practices of local governments in the use of information and communication technology (e.g. laptop computers, iPads);

(d) the varying travel requirements of council members in local governments associated with geography, isolation and other factors.

9.2       Annual Allowances Determined Instead of Reimbursement for Particular Types of Expenses


(1) In this section –

ICT expenses means –

(a)     rental charges in relation to one telephone and one facsimile machine, as prescribed by regulation 31(1)(a) of the LG Regulations; or

(b)     any other expenses that relate to information and communications technology (for example, telephone call charges and internet service provider fees) and that are a kind of expense prescribed by regulation 32(1) of the LG Regulations;

travel and accommodation expenses means –

(a)     travel costs, as prescribed by regulation 31(1)(b) of the LG Regulations; or

(b)     any other expenses that relate to travel or accommodation and that are a kind of expense prescribed by regulation 32(1) of the LG Regulations.


(2) For the purposes of section 5.99A(b) of the LG Act, the minimum annual allowance for ICT expenses is $500 and the maximum annual allowance for ICT expenses is $3,500.

(3) For the purposes of section 5.99A(a) of the LG Act, the annual allowance for travel and accommodation expenses is $50.



SCHEDULE 1: LOCAL GOVERNMENT BAND ALLOCATIONS

Local GovernmentBand
Albany City1
Armadale City1
Ashburton Shire2
Augusta-Margaret River Shire2
Bassendean Town3
Bayswater City1
Belmont City1
Beverley Shire4
Boddington Shire4
Boyup Brook Shire4
Bridgetown-Greenbushes Shire3
Brookton Shire4
Broome Shire2
Broomehill-Tambellup Shire4
Bruce Rock Shire4
Bunbury City1
Busselton City1
Cambridge Town2
Canning City1
Capel Shire3
Carnamah Shire4
Carnarvon Shire2
Chapman Valley Shire4
Chittering Shire3
Claremont Town3
Cockburn City1
Collie Shire3
Coolgardie Shire3
Coorow Shire4
Corrigin Shire4
Cottesloe Town3
Cranbrook Shire4
Cuballing Shire4
Cue Shire4
Cunderdin Shire*4
Dalwallinu Shire4
Dandaragan Shire3
Dardanup Shire3
Denmark Shire3
Derby-West Kimberley Shire2
Donnybrook Balingup Shire3
Dowerin Shire4
Dumbleyung Shire4
Dundas Shire4
East Fremantle Town3
East Pilbara Shire2
Esperance Shire2
Exmouth Shire3
Fremantle City1
Gingin Shire3
Gnowangerup Shire4
Goomalling Shire4
Gosnells City1
Greater Geraldton City1
Halls Creek Shire3
Harvey Shire2
Irwin Shire3
Jerramungup Shire4
Joondalup City1
Kalamunda Shire2
Kalgoorlie-Boulder City1
Karratha City1
Katanning Shire3
Kellerberrin Shire4
Kent Shire4
Kojonup Shire3
Kondinin Shire4
Koorda Shire4
Kulin Shire4
Kwinana City1
Lake Grace Shire4
Laverton Shire3
Leonora Shire3
Mandurah City1
Manjimup Shire3
Meekatharra Shire3
Melville City1
Menzies Shire4
Merredin Shire3
Mingenew Shire4
Moora Shire3
Morawa Shire4
Mosman Park Town3
Mount Magnet Shire4
Mount Marshall Shire4
Mukinbudin Shire4
Mundaring Shire2
Murchison Shire4
Murray Shire3
Nannup Shire4
Narembeen Shire4
Narrogin Town3
Nedlands City2
Ngaanyatjarraku Shire4
Northam Shire2
Northampton Shire4
Nungarin Shire4
Peppermint Grove Shire4
Perenjori Shire4
Perth City1
Pingelly Shire4
Plantagenet Shire3
Port Hedland Town1
Quairading Shire4
Ravensthorpe Shire3
Rockingham City1
Sandstone Shire4
Serpentine-Jarrahdale Shire3
Shark Bay Shire4
South Perth City2
Stirling City1
Subiaco City2
Swan City1
Tammin Shire*4
Three Springs Shire4
Toodyay Shire3
Trayning Shire4
Upper Gascoyne Shire4
Victoria Park Town2
Victoria Plains Shire4
Vincent City2
Wagin Shire4
Wandering Shire4
Wanneroo City1
Waroona Shire3
West Arthur Shire4
Westonia Shire4
Wickepin Shire4
Williams Shire4
Wiluna Shire4
Wongan-Ballidu Shire4
Woodanilling Shire4
Wyalkatchem Shire4
Wyndham-East Kimberley Shire2
Yalgoo Shire4
Yilgarn Shire3
York Shire3
*Denotes a Shire with a CEO who holds a dual appointment, as per 2.2(4) of this determination.




 

SCHEDULE 2: LOCAL GOVERNMENT NON-RESPONDENTS


The Tribunal endeavoured to contact the following local governments by email to respond to the Local Government Remuneration survey. No response was received and therefore no remuneration data from these local governments was included in the Tribunal's review :

  • City of Bayswater
  • Shire of Westonia
  • Shire of Wongan-Ballidu

It is noted that the City of Bayswater and Shire of Wongan-Ballidu did not respond to the Tribunal's 2015 inquiry into the remuneration for Local Government CEOs.  The City of Bayswater also did not respond to the 2015 inquiry into the fees, expenses and allowances of elected council members.

 


Signed on 12 April 2016.

 

 

 

 

 

W S Coleman AMC A BroadbentB J Moore
CHAIRMANMEMBERMEMBER

SALARIES AND ALLOWANCES TRIBUNAL



 

 

 

EXPLANATORY NOTES


This section does not form part of the determination

  1. Entitlements

    The entitlement of a council member to a fee, allowance or reimbursement of an expense established under the LG Act, the LG Regulations and this determination, cannot be proscribed, limited or waived by a local government. Any eligible claim against those entitlements is to be paid in accordance with the applicable financial procedures of the local government.
  2. Local governments to set amounts within the range determined

    Where the Tribunal has determined a minimum and maximum amount for a fee, expense or allowance for members of the council of a local government or a regional local government, each council is to set, by absolute majority, an amount within the relevant range determined and the amount set will be payable to elected council members.
  3. Superannuation

    Nothing in this determination establishes a liability for the payment of superannuation by local governments. Elected council members are eligible for superannuation payments if their council has resolved unanimously to become an Eligible Local Governing Body (ELGB) pursuant to section 221A and section 221B of the Income Tax Assessment Act 1936 (Cwlth). Where the council is an ELGB, it is deemed to have an employer/employee relationship with its elected council members and this attracts the application of a number of statutory obligations.  Alternative arrangements described in Australian Taxation Office (ATO) Interpretative Decision ATO ID 2007/205 allow for elected council members and councils to agree for whole or part of meeting attendance fees to be paid into a superannuation fund. Where the council is an ELGB, fees for attendance at council, committee and prescribed meetings (whether paid via a per meeting fee or annual allowance) are to be inclusive of any superannuation guarantee liability. This information is not published by way of legal or financial advice.
 





[1] Cost of doing Business in the Pilbara – August 2015 http://www.rdapilbara.org.au/resources/site1/General/Publication%20Reports/16829%20RDA%20Cost%20of%20Doing%20Business%20in%20the%20Pilbara%202015%20WEB.pdf