Posted on March 2, 2020 by Megan Hawley and
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ALERT – Bill to Ban Real Estate Agents and Property Developers From Holding Civic Office
On 27 February 2020 the Local Government Amendment (Disqualification from Civic Office) Bill 2020 (“Bill”) was introduced into parliament.
It proposes to amend s 275 of the Local Government Act 1993 to provide that real estate agents and property developers are disqualified from holding civic office.
Civic office means the position of councillor or mayor of a local council, or chairperson or member of a county council.
For the purposes of the Bill, real estate agent has the same meaning as in the Property, Stock and Business Agents Act 2002, and property developer has the same meaning as in the Electoral Funding Act 2018. The definition of property developer turns on whether the person carries on a business concerned with residential or commercial development of land for profit and whether that person has made 3 or more planning applications which have been determined in the last 7 years, or has a pending planning application.
If the Bill becomes law, it will not require a real estate agent or property developer to immediately resign from office. Such a person will be able continue to hold office for the balance of that person’s term of office, or 6 months, whichever is the shorter.
Also, a real estate agent or property developer can seek election to civic office, and can be elected, provided that if elected, the person ceases to be a real estate agent or property developer before the first meeting of the council after the election.
The Bill does also not propose to prevent an existing councillor who is a real estate agent or property developer being elected as mayor on a vote of councillors if that person is serving out the balance of their term (or the 6 month period if shorter).
We will continue to monitor the progress of this Bill. To stay informed, subscribe to in focus below.
To discuss this post, please contact Megan Hawley on 02 8235 9703 or Anzer Khan on 02 8235 9717.
I work for a property developer. My discipline is town planning. I have made numerous planning applications (definitely more than 3) on behalf of the property developer, which have been determined in the last 7 years.
My reading of your ALERT is that I would be able to run for civic office now and also if the Bill was passed in its present form. Have I understood the situation correctly?
Hi Sylvia,
I haven’t extracted the whole definition of ‘property developer’ in the ALERT. The definition in the Electoral Funding Act covers ‘close associates’ of property developers. So on the assumption your employer is a corporation which is a property developer (being a corporation which carries on a business mainly concerned with residential or commercial development of land and which has lodged the requisite number of planning applications), you could also be a property developer if you are a close associate of the corporation. Relevantly this includes a director or officer of the corporation. There are other provisions about how individuals and other corporations can be close associates of property developers.
If you are a director or ‘officer’ of your employer, you would be a property developer, and disqualified from holding office if the Bill becomes law.
Regards
Megan
Thank you, Megan, for your response.
I think it is arguable that I am an ‘officer’ of the Corporation because of my role – National Manager of Project Approvals. If I was seriously interested in civic office, I can see it would be prudent for me to not be working for a development company.
Kind regards
This is an anti-democratic measure.
It would be better if the existing declaration of whether someone is a developer or associate (as part of the Candidate application process) was actually enforced.