LGAQ Update LARMA Marriott Hotel Brisbane 18 May 2012 Mark Leyland (Principal Advisor – Finance & Governance) PRS: 1.

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Presentation transcript:

LGAQ Update LARMA Marriott Hotel Brisbane 18 May 2012 Mark Leyland (Principal Advisor – Finance & Governance) PRS: 1

In this session we will cover: Election Update 2. Division 81 and GST 3. LGAQ’s Briefing of Ministers. PRS: 2

2012 Election Update Some basic data: 73 Councils 73 Mayors 488 Councillors Total 561 elected members This election 1 Mayoral candidate died (by-election June 2012) One division received no nominations – Minister will appoint in consultation with elected council. 30 Councils full Postal Ballot (43 Attendance or mix with Postal) 23 divided (one councillor per division) - Optional Preferential 50 undivided Councils - First Past The Post PRS: 3

2012 Election Update Some Mayoral election results: 43 new mayors made up of 13 sitting councillors and 30 new candidates were elected. 29 sitting mayors were returned including six returned unopposed. 20 new mayors have had no previous experience in the role of mayor or councillor. One sitting Mayor stood for election as councillor. He was unsuccessful. There are 12 female mayors PRS: 4

2012 Election Update Some Councillor Election results: 336 sitting councillors stood for election as councillors (29 unopposed), of which 238 were successful. 955 new candidates stood for election as councillors (including one sitting mayor), of which 249 were successful. A record level of new councillors (51.2%) has been elected, up 29% on 2008 A significantly higher proportion of “corporate knowledge” has been lost from the ranks of councillors in 2012 compared with 2008 and PRS: 5

2012 Election Update Some other Election data: Voter turnout overall is at a record low level of 80.3%, down a further 4.6% on This compares with a turnout of 91% at the 2012 State election. Voter turnout for attendance voting at 81% is considerably higher than for postal voting at 75.96%, but down a significant 4.0% and 3.64% respectively compared with Informal votes for Councillors at 4.15% are higher than that for Mayor at 3.2%, and both are slightly up on The informal votes of 4.15% for Councillors and 3.2% for Mayors compares with 2.15% for the 2012 State election. PRS: 6

GST and Division 81 A new principle-based legislative exemption contained in Division 81 of the GST Act came into force on 1 July This meant the old Div 81 Determination that local government relied on was being replaced – although it was “grandfathered” for 1 year to 1 July 2012 as a transition process. Any new fee or charge arising from new legislation not covered by grandfathered Determination was to be self accessed against the Principles for GST treatment – eg City of Brisbane Act wasn’t covered so BCC had to self assess fees and charges imposed under that Act. This caused problems where principle outcome was different to the old Determination outcome.

GST and Division 81 GST treatment of Green Waste Wheelie Bin Services was one example – ATO helpfully provided conflicting rulings to BCC and Ipswich CC! LGAQ, with key contributions from Council officers with vast experience in these matters, made representations to ALGA, Queensland Treasury, and through ALGA to the Commonwealth Treasury. Common sense has prevailed, with the release of exposure draft Regulations that prescribe fees and charges that will be treated as GST exempt, and fees and charges that will be treated as taxable supplies from 1 July The draft Regulation will ensure that the GST treatment of particular goods and services supplied by government related entities is consistent with the principles contained in the Intergovernmental Agreement on Federal Financial Relations.

GST and Division 81 The draft Regulations also provide a longer transitional period to the new exemption mechanism by extending the grandfathering of the previous Division 81 Determination for a further 12 months until 30 June The Regulation, when in place, will provide more certainty to Councils. However, it is important for Councils to keep abreast of developments relating to the tax regimes applying to councils to ensure that their application of GST to fees and charges is at all times compliant with current requirements.

LGAQ Ministerial Briefings LGAQ has prepared 29 Briefing Notes to push the agenda of local councils and their communities with the new Newman ministry. The Briefing Notes have been forwarded to 14 Ministers and are based on LGAQ Policy Statements, Annual Conference and Policy Executive resolutions and the Association’s 10 Point State Election Policy Plan.

LGAQ Ministerial Briefings The papers cover a broad range of priority areas, including: empowering local governments; amending the Local Government Act and Sustainable Planning Act; reducing the regulatory burden on councils and communities; infrastructure and road funding; urban water supply arrangements; issues confronting councils in resource regions; Floods Commission of Inquiry recommendations; bio-security and bio-diversity issues; new approaches for working with indigenous councils; and promoting healthy communities.

LGAQ Ministerial Briefings Empowering Queensland Local Government 1. Review regulatory barriers to delivering services and procurement across common areas. And introduce new regulations enabling councils to achieve this. 2. Investigate incentives for Local Government’s to improve efficiency and customer service. 3. Identify opportunities for the bulk or aggregated procurement of goods, services and infrastructure.

LGAQ Ministerial Briefings 4. Promote and develop business models for the effective delivery of shared services across geographical or common interest areas. 5. Invest in the development of common platforms and technology that will assist councils share data, knowledge and services. Amending the Local Government Act - General 1.Removal of requirement for councillors to resign before nominating for state parliament 2.Introducing a requirement for the CEO to consult positively with council/Mayor on and prior to appointment of senior council staff 3.Recognition of LGAQ as the body representing local governments in Queensland

LGAQ Ministerial Briefings Amending the Local Government Act – Rating etc 1.Reinstating the broader approach to special rating, as reflected in the 1993 Act, so as to protect, in particular, mining town special rating arrangements 2.Reinstating the 1993 Act definition for separate rates and charges to protect and clarify local government’s revenue raising capability 3.Introducing a blanket ban on general rating decisions being challenged 4.Amending the Act to protect local governments’ ability to recover overdue rates and charges

Need further help? Call or Text: [1300 LGAQ 00] or Web: PRS: 15