Local Government around Australia
LG Leader June 2018
While there are always issues of importance to councils in South Australia to report on, it is often illustrative to examine the experiences of other States, not only to gain an understanding of the wider local government experience, but to benefit from the knowledge and lessons that may have been learnt in other jurisdictions.
By way of example, against the backdrop of calls from several councils in South Australia for the power to regulate the ever-expanding industry of short term home-sharing and holiday rentals, on 6 June 2018 the State Government in NSW introduced the Fair Trading Amendment (Short-term Rental Accommodation) Bill 2018. The purpose of the Bill is to regulate short-term residential accommodation, such as AirBnB. The Bill proposes to make changes to planning laws, imposing conditions on short term leasing, capping short-term leasing in Greater Sydney to 180 days per year and giving councils the power in regional NSW to reduce a 365 day cap, (to not less than 180 days), if deemed necessary for its community.
The Bill also proposes a new mandatory code of conduct for online booking platforms, guests and hosts, and changes to strata laws to allow by-laws prohibiting short-term letting.
It will be interesting to follow the progression of the Bill, in the context of what is proving to be a difficult issue to regulate for many councils across Australia.
Of general interest in a South Australian Local Government elections year, last week, Mr Salim Mehajer, former Deputy Mayor of the Auburn Council, was convicted of more than 100 counts of electoral fraud and sentenced to 21 months imprisonment. The Magistrate found that acting in a joint criminal enterprise with another, Mr Mehajer “fixed” the 2012 Auburn Council elections by submitting false online applications to the Australian Electoral Commission. The applications falsely indicated that family members of Mr Mehajer, who lived elsewhere, were residents in his electorate, making them eligible to vote. Mr Mehajer was ultimately elected to Auburn Council as part of that election cycle.
Across the border in Victoria, significant reform to local government is underway. The Local Government Bill 2018 was introduced into Parliament on 23 May 2018, repealing and replacing the Local Government Act 1989. Reforms proposed under the Bill include a legislative power for the Minister for Local Government to suspend individual Members who pose a significant threat to the governance of a council, for up to a year.
Also in Victoria, a law firm has reported that it was “well advanced” into filing possible proceedings against JLT, on the basis that it owed a duty of care to councils. One of the central limbs of the proposed claim is that councils regularly procure some or all insurance requirements through various insurance schemes managed by JLT and its related entities, after receiving advice from JLT, acting as their insurance broker.
As a preliminary step to filing a claim, in February of this year a legal firm acting on behalf of Mornington Peninsula Shire Council obtained access to JLT documents relating to the Victorian Scheme, by way of application in the Federal Court. In relying on the content of a 2015 Victorian Auditor-General’s report, Federal Court Chief Justice Allsop ruled that the report “provides a reasonable basis for the council to believe that there may be a right to relief from JLT concerning the levels of fees and costs if there be … a fiduciary relationship between JLT and member council’s.”
The hearing in relation to the question of access to documents did not, and was not, proposed to resolve the substantive argument over whether such a duty was owed, that will ultimately be the purpose of any future proceedings which may be filed.
As, always, we will continue to keep readers updated on matters of significance for councils in South Australia.
For more information please contact Tracy Riddle on 08 8113 7106 or at triddle@kelledyjones.com.au.