On 27 August 2025, the Property Council submitted on the Local Government (System Improvements) Bill 2025.
Why this matters to our members
The Bill aims to reform local governance for greater accountability, transparency and financial discipline. In particular, the Bill looks to reduce pressure on council rates by refocusing the purpose of local government and prioritising core services in council spending.
Our view
We support the overall intent of the Bill and welcome the Bill’s aim to improve local government financial discipline. However, we raise concerns that the purpose and core services amendments will be quite broad in their application and we do not support the changes to third-party funding rules for Development Contribution Fees.
At a high level, Property Council recommends that the Commission:
- Remove the word ‘broad’ from clause 3(d) of the Bill;
- The term ‘good-quality’ is defined under section 5 to include reference to sustainable development;
- Define ‘good-quality’ under section 5, Interpretation, as: “efficient, effective, sustainable, affordable and appropriate to present and anticipated future local circumstances.”;
- Clearly define public services with a complete list of activities considered under each subclause 11A(1)(a)–(e);
- Amend subclause 11A(1)(e) to read: “discretionary services, such as libraries, museums, reserves, and other recreational facilities” and include a new clause 11A(4) to encourage local authorities to only provide discretionary services where they are financially feasible;
- Ensure that core services listed under clause 11A(1)(e) are not considered in development contribution decisions;
- Retain the current framework for deducting third-party contributions from development contributions, ensuring deductions are only made where there is a clear, demonstrable intent that funding offsets growth-related costs; and
- If the proposed change to third-party funding proceeds, provide clear guidance and definitions.