Posted on September 21, 2026 by Megan Hawley 6

Councillor Conduct Amendments to Local Government Act

Further to our article on 29 July 2026 here regarding the proposed new framework for Councillor Conduct, the Local Government and Other Legislation Amendment (Councillor Conduct Proceedings) Bill 2026 (Conduct Bill) has passed through the Legislative Assembly (with some amendments) and was introduced into the Legislative Council on 17 September 2026.

The Conduct Bill proposes a range of amendments to the Local Government Act 1993 (LG Act).

The key amendments are discussed below.

Disqualification from Civic Office and ‘Serious Wrongdoing’

Previously s275(1)(e) provided that a person was disqualified from office if while holding office or within 7 years before nomination for election, election or appointment, the person was convicted of an offence punishable by imprisonment of 5 years or more in NSW (or convicted in another jurisdiction, of an offence which would have been such an offence if in NSW).

This ground is proposed to be expanded to cover conviction in NSW of ‘serious wrongdoing‘, convicted elsewhere of what would be serious wrongdoing if in NSW or found by the Independent Commission Against Corruption to have engaged in ‘corrupt conduct’ within the meaning of the Independent Commission Against Corruption Act 1988.

A definition of ‘serious wrongdoing‘ is to be included as follows:

‘(a) corrupt conduct,
(b) an indictable offence that is punishable by imprisonment for 5 years or more, including imprisonment for life, or
(c) an offence under the Crimes Act 1900, Part 3, Division 10′

Part 3, Division 10 of the Crimes Act delas with ‘sexual offences‘.

References in Division 2 of Part 1 of Chapter 14 to ‘serious corrupt conduct’ have been replaced with ‘serious wrondgoing’, although the Governor’s powers to dismiss or disqualify a person from civic office are not amended, and are limited to circumstances involving serious corrupt conduct

Jurisdiction of the Land & Environment Court

Generally the Land & Environment Court (LEC) now has jurisdiction in respect of Councillor misconduct in place of the Civil and Administration Tribunal (NCAT)).

New s469 enables the Departmental Chief Executive (currently the Secretary of the Department of Planning, Housing and Infrastructure (DCE)) to commence proceedings in the LEC in relation to an allegation of a breach of pecuniary interest provisions of the LG Act, after receipt of a report in that regard from an authority.

New s470A provides that the DCE may commence proceedings in the LEC in relation to an allegation of misconduct.

The LEC may determine such proceedings on the papers and without a hearing  with agreement between the parties, and where there are no material facts in issue, and in the Court’s opinion, public interest considerations do not require a hearing.

There is a proposed new Class 9 of the LEC’s jurisdiction to deal with matters under the LG Act as proposed to be amended by the Conduct Bill.

Public Interest Proceedings

A new Part 4 is proposed to be inserted into Chapter 17 of the LG Act headed ‘public interest proceedings against councillors’.

The provisions allow the Minister administering the LG Act, the DCE, the Director of Public Prosecutions, the Secretary of another government department or ‘another person granted leave’ by the LEC, to commence proceedings against a councillor in relation to a breach of ‘a law’ or a council’s adopted Code of Conduct, if the person considers it in the public interest to do so.

If a person seeks such leave, notice must be given to the Local Government Minister and the DCE. The LEC will only grant leave if neither the Minister nor DCE have commenced proceedings, or wish to be added as parties, if the LEC considers the proceedings have public interest and would not be an abuse of process, and the proceedings have a reasonable prospect of success.

There are some provisions obliging a person granted leave to inform the LEC in any such proceedings if they are also seeking or have obtained a remedy in the Industrial Relations Commission in respect of substantially the same conduct by the councillor.

In any such proceedings a person (other than a person who required leave of the LEC) can apply for the suspension of the councillor and the LEC can suspend the councillor if it considers it is in the public interest to do so.

If in such proceedings the LEC is satisfied that that there has been a breach of a law or of the Code of Conduct, the LEC may disqualify the council for up to 5 years, suspend the councillor for less than 5 years, order the councillor to take action to reverse any unjust benefit the councillor has derived or pay compensation, damages a debt or restitution to another person, or pay a civil penalty (currently proposed to be not more than $49940).

Such proceedings can follow or precede criminal proceedings regarding the same conduct, even if the councillor has been convicted.

There are amendments to the Industrial Relations Act 1996 requiring consideration of whether any proceedings have been commenced under the above provisions of the LG Act if a person seeks a ‘stop bullying order’ under s144D of that Act, or makes an application to the Industrial Relations Commission to deal with sexual harrassment in connection with work under that Act.

Compliance Orders and Misconduct

Section 438HA of the LG Act, regarding enforcement of performance improvement orders made against a councillor under Part 6 of Chapter 13 of the LG Act is to be replaced with a new provision which makes some changes to the process for issuing compliance orders.

No show cause notice is required, and a councillor does not need to be afforded an opportunity to be heard, if the Minister receives a departmental report and determines to direct the DCE to take proceedings under s470A (see above), instead of issuing the compliance order.

Proceedings under s470A can, however, be commenced, after the issue of a compliance order, or while such an order is in force.

Failure of a councillor to comply with a performance improvement order, or a compliance order is misconduct.

Similarly, if the DCE decides to commence proceedings under5 s469 of the LG Act no notice is to be given, or opportunity to be heard under s440I which is otherwise required if the DCE is considering disciplinary action against a councillor in respect of misconduct.

We will track the progress of the legislation and provide further alerts.

If you wish to discuss or have any questions regarding the above, please comment, or contac Megan Hawley on 8235 9703.

The Conduct Bill can be found here