Local Government Chief Executive Officers and Elected Members Determination No 1 of 2020

PREAMBLE

Statutory Context

1. Section 7A of the Salaries and Allowances Act 1975 (‘the SA Act’) requires the Salaries and Allowances Tribunal (‘the Tribunal’) to “inquire into and determine, the amount of remuneration, or the minimum and maximum amounts of remuneration, to be paid or provided to chief executive officers of local governments”.
2. Under Section 7B(2) of the SA Act, the Tribunal must inquire into and determine the amount of:
   • fees, or the minimum and maximum amounts of fees, to be paid under the Local Government Act 1995 (‘the LG Act’) to elected council members for attendance at meetings;
   • expenses, or the minimum and maximum amounts of expenses, to be reimbursed under the LG Act to elected council members; and
   • allowances, or the minimum and maximum amounts of allowances, to be paid under the LG Act to elected council members.
3.  By issuing this Determination, the Tribunal discharges its obligations under Section 8 of the SA Act, which requires determinations under sections 7A and 7B to be issued at intervals of not more than 12 months.

CONSIDERATIONS

4. The Tribunal has considered sections 2.7 to 2.10 and 5.41 of the LG Act, which outlines the roles and responsibilities of local governments, councillors, mayors, presidents and their deputies and the functions of local government Chief Executive Officers (CEOs).
5. The Tribunal invited individual local governments to provide information in order to ensure the Tribunal is informed on developments across the sector.

      Band allocation model

6. The Tribunal continues to apply the four Band allocation model established in its 2012 determination. The model allows a number of measurable and non-measurable factors to be considered when assessing appropriate levels of remuneration.
7. The Tribunal notes that the remuneration ranges set for these Bands provide some flexibility to local governments. The Tribunal will only adjust a classification when a local government or regional local government can demonstrate a substantial and sustained increase within the parameters of the band allocation model.

   Christmas and Cocos Islands

   In 2016, the Commonwealth and WA Governments entered an agreement under the Christmas Island Act 1958 (Cth), the Cocos (Keeling) Islands Act 1995 (Cth) and the Indian Oceans Territories (Administration of Laws) Act 1992 (WA), by which the Tribunal has the power to determine the remuneration of local government CEOs and the fees, expenses and allowances for local government elected members of the Shires of Christmas Island and Cocos (Keeling) Islands.
8. This inquiry reviewed remuneration provided by the Shires of Christmas and Cocos (Keeling) Islands.

   Economic circumstances

9. This inquiry’s considerations were influenced by the sudden and overriding issue of Coronavirus (COVID-19). There is considerable uncertainty regarding the consequences of COVID- 19 and its impact on the State’s economic circumstances.
10. The Tribunal recognises the need for remuneration provided to public officers to accord with community expectations. At this time of great uncertainty and challenge for all Western Australians, the need for the Tribunal to exercise restraint is indisputable.
11. Nothing in this determination should be interpreted or applied in such a manner as to circumvent the Tribunal’s intention for transparency and accountability in the remuneration of local government CEOs and the provision of fees, expenses and allowances to elected members.

    CONCLUSIONS

12. The Tribunal has determined there will be no increase in remuneration, fees, expenses and allowance ranges provided to CEOs and elected members.
13. The Tribunal notes each local government is able to set remuneration within the band to which it is allocated. Each local government must conduct its own assessment to determine whether any increase, within the bands, is justified.
14. In reviewing the classification framework, band allocation model and all other relevant information, the Tribunal has examined local governments with potential to change classification. The Tribunal considers that the Shire of Murray should be reclassified from Band 3 to Band 2. All other local governments retain their existing classifications.
15. It is emphasised that fees and allowances, in lieu of reimbursement of expenses, provided to elected members are not considered payment for work performed in a manner akin to regular employment arrangements. Elected members are provided these fees and allowances to recognise the commitment of their time and to ensure they are not out of pocket for expenses properly incurred in the fulfilment of their duties.
16. The Tribunal prefers reimbursement of actual expenses to be used where possible.
17. The Tribunal has made an additional minor change through the inclusion of guiding principles to be used by local governments when considering the appropriateness of providing a CEO Regional/Isolation Allowance. These principles are largely unchanged from those originally outlined in the 2012 Determination, when the Regional/Isolation Allowance was established.

Determination for Local Government Chief Executive Officers and Elected Members Pursuant to Section 7a And 7b of The Salaries and Allowances Act 1975

CONTENTS

Part 1:  Introductory Matters

1.1 Short Title

1.2 Commencement

1.3 Content and intent

1.4 Terms used

1.5 Pro rata payments

1.6 Local government band allocations

Part 2:  Total Reward Package

2.1 General

2.2 Local government classification

Part 3:  Regional/Isolation Allowance

3.1 General

3.2 Determining Appropriateness and Rate of Allowance

3.3 Regional/Isolation Allowance

Part 4:  Housing Allowance

4.1 General

4.2 Housing Allowance

Part 5:  Motor Vehicle Allowance

5.1 General

5.2 Private benefit value

Part 6:  Meeting Attendance Fees

6.1 General

6.2 Council meeting attendance fees – per meeting

6.3 Committee meeting and prescribed meeting attendance fees – per meeting

6.4 Annual attendance fees in lieu of council meeting, committee meeting and prescribed meeting attendance fees

Part 7:  Annual Allowance for a Mayor, President, Chair, Deputy Mayor, Deputy President and Deputy Chair

7.1 General

7.2 Annual allowance for a mayor, president or chair

7.3 Annual allowance for a deputy mayor, deputy president or deputy chair

Part 8:  Expenses to be Reimbursed

8.1 General

8.2 Extent of expenses to be reimbursed

Part 9:  Annual Allowances in lieu of Reimbursement of Expenses

9.1 General

9.2 Annual allowances determined instead of reimbursement for particular types of expenses

Schedule 1:  Local Government Band Allocations

Explanatory Notes

PART 1: INTRODUCTORY MATTERS

This Part deals with some matters that are relevant to the determination generally.

1.1 Short title

This determination may be cited as the Local Government Chief Executive Officers and Elected Members Determination No. 1 of 2020.

1.2 Commencement

This determination comes into operation on 1 July 2020.

1.3 Content and intent

1. The remuneration listed in this determination comprises all remuneration as defined under the Salaries and Allowances Act 1975 as including salary, allowances, fees, emoluments and benefits.
2. The determination applies to
   1. Chief Executive Officers (CEOs);
   2. Acting Chief Executive Officers; and
   3. Elected Members
3. The remuneration specified in this determination for CEOs is based on a person being appointed to one local government CEO position only. In the case of a person appointed to undertake the duties of more than one CEO position simultaneously, the relevant local governments must seek a determination from the Tribunal for the multiple CEO positions held by that person.
4. If a local government undergoes an amalgamation or a rezoning of local government boundaries, the local government is required to seek a new determination from the Tribunal.
5. This determination provides for the amount of fees, expenses and allowances to be paid or reimbursed to elected council members under the Local Government Act 1995 (‘the LG Act’) Part 5 Division 8. The determination applies to elected council members who are members of the council of a local government, and under section 3.66 of the LG Act.
6. Where the Tribunal has determined a specific amount for a fee, expense or allowance for elected council members of a local government or regional local government, theamount determined by the Tribunal will be payable to an eligible elected council member.
7. Where the Tribunal has determined a minimum and maximum amount for a fee, expense or allowance for elected council members of a local government or regional local government, each local government or regional local government council will set an amount within the relevant range determined and the amount set will be payable to an eligible elected council member.
8. The fees, expenses and allowances determined are intended to recognise the responsibilities of elected council members, mayors and presidents of local governments and chairmen of regional local governments and to remunerate them for the performance of the duties associated with their office.

1.4 Terms used

In this determination, unless the contrary intention appears -

Chair means a person who is elected or appointed from among the members of a council of a regional local government as its chair;

Committee meeting means a meeting of a committee of a council where the committee comprises –

(a) council members only; or

(b) council members and employees of the local government or regional local government;

Council, in relation to:

(a) a local government, means the council of the local government;

(b) a regional local government, means the council of the regional local government;

Council member, in relation to:

(a) a local government –

        (i) means a person elected under the LG Act as a member of the council of the local government; and

        (ii) includes the mayor or president of the local government;

(b) a regional local government –

        (i) means a person elected under the LG Act as a member of the council of a local government and who is a member of the council of the regional local government; and

        (ii) includes the chair of the regional local government;

LG Regulations means the Local Government (Administration) Regulations 1996;

Mayor means a council member holding the office of mayor, whether elected by the council from amongst its members or elected by the electors;

President means a council member holding the office of president, whether elected by the council from amongst its members or elected by the electors.

1.5 Pro rata payments

1. The Total Reward Package specified in this determination for CEOs is based on a person serving in the office on a full-time basis. The relevant range shall be payable on a pro rata basis if the position is undertaken on a part time basis.
2. The amount of a person’s entitlement to remuneration, annual attendance fee or annual allowance specified in this determination shall be apportioned on a pro rata basis according to the portion of a year that the person holds office.

1.6 Local government band allocations

Unless the contrary intention appears, this determination allocates local governments to the bands set out in Schedule 1. Regional local governments are allocated to a Band only with respect to CEOs.

PART 2: TOTAL REWARD PACKAGE

This Part deals with the remuneration payable to Chief Executive Officers.

2.1 GENERAL

1. Offices listed in this Part have been assigned by the Tribunal to one of four classifications designated Band 1 to Band 4.
2. Each classification (Band 1 to Band 4) has a commensurate Total Reward Package (TRP) range.
3. Typical components of a TRP include:
   1. Base salary; 
   2. Annual leave loading;
   3. Associated FBT accrued (total annual amount of fringe benefits tax paid by the local government for all fringe benefits provided to a CEO);
   4. Association membership fees;
   5. Attraction/retention allowance, not being provided under Part 3;
   6. Personal benefit value of the provision of a motor vehicle for private use (if applicable) as defined under Part 5 of this determination;
   7. Cash bonus and performance incentives;
   8. Cash in lieu of a motor vehicle;
   9. Fitness club fees;
   10. Grooming/clothing allowance;
   11. Health insurance;
   12. School fees and/or child’s uniform;
   13. Superannuation (all mandatory and non-mandatory employer superannuation contributions);
   14. Travel or any other benefit taken in lieu of salary;
   15. Travel for spouse or any other member of family;
   16. Unrestricted entertainment allowance;
   17. Utilities allowance (any water, power or other utility subsidy provided to the CEO); and
   18. Any other form of payment, in cash or not, in consideration as a reward or benefit of the CEOs duties.
4. The only exclusions from the TRP are:
   1. items listed in Parts 3, 4 and 5 of this determination (however, any superannuation guarantee associated with the payment of a Regional/Isolation Allowance and any associated FBT accrued from the provision of a motor vehicle or accommodation are to be included as part of the TRP);
   2. employer obligations such as professional development (restricted to the CEO), reimbursement for genuine work expenses or the cost of recruitment and relocation expenses; and
   3. items considered by the local government to be a tool of trade (i.e. equipment needed to undertake the duties of a CEO) and which are not a direct or indirect reward or benefit for the performance of duties as a CEO.

2.2 LOCAL GOVERNMENT CLASSIFICATION

1. The ranges of TRP in Table 1 apply where a local government or regional local government has been classified into the relevant band.

Table 1: Local government band classification – Total Reward Package range

   2. Local governments have been classified in Schedule 1.

   3. Regional local governments have been classified in Table 2 below.

Table 2: Regional local government band classification

4. A person who holds a dual appointment of the CEO of the Shire of Cunderdin and the CEO of the Shire of Tammin, shall be entitled to receive a TRP range from the bottom of Band 4 ($128,226) to a maximum of $220,211 (which represents the top of Band 4 plus 10%).

5. A person who holds a dual appointment of the CEO of the Shire of Murray and the CEO of the Shire of Waroona, shall be entitled to receive a TRP range from the bottom of Band 2 ($206,500) to a maximum of $351,727 (which represents the top of Band 2 plus 10%).

6. A person who holds a dual appointment of the CEO of the Shire of East Pilbara and the CEO of the Pilbara Regional Council, shall be entitled to receive a TRP range equivalent to the Band 2 range ($206,500 - $319,752).

PART 3: REGIONAL/ISOLATION ALLOWANCE

This Part deals with the Regional/Isolation Allowance that may be payable to Chief Executive Officers from local governments identified in this Part.

3.1 GENERAL

1. Local governments listed in Table 3 in this Part may provide a Regional/Isolation Allowance to a CEO, in addition to the CEO’s Total Reward Package, in recognition of the regional and isolation factors which may affect the attraction and retention of the CEOs of those local governments.
2. There is no requirement to provide a Regional/Isolation Allowance to a CEO. Payment of this allowance is at the discretion of the local government, within the parameters set by the Tribunal.
3. When a local government chooses to use any or all of this allowance, the payment of the allowance should be properly justified and applied in a transparent manner considering the issues outlined in 3.2.
4. When a local government chooses to pay all or any of this allowance, it is to be paid to the CEO as salary.

3.2 DETERMINING APPROPRIATENESS AND RATE OF ALLOWANCE

1. When assessing the appropriateness of providing a Regional/Isolation Allowance, an eligible local government must consider the impact of factors outlined in 3.2(3) on attraction and retention of a CEO. In the event these factors have little or no impact, the Local Government should not provide this Allowance.
2. In the event a Regional/Isolation Allowance is considered appropriate, the amount of the Allowance should be proportionate to the circumstances faced by the Local Government.
3. The following factors should be considered when determining whether to apply the Regional/Isolation Allowance:
   • Remoteness - Issues associated with the vast distances separating communities within a Local Government or the distance of the Local Government from Perth or a Regional Centre;
   • Cost of living - The increased cost of living highlighted specifically in the Regional Price Index
   • Social disadvantage: Reduced specialist health services, schooling opportunities for children, employment opportunities for spouse, reduced lifestyle commodities when compared to Perth and regional centres, and access to professional and personal support networks;
   • Dominant industry: The impact that a dominant industry such a mining or agriculture has on an area and the ability to attract and retain people in the face of a dominant industry;
   • Attraction/retention: The ability to recruit suitably qualified candidates and being able to retain them in light of the above concerns in competition with positions in Perth, regional centres and private industry;
   • Community expectations: The pressures on a CEO to meet expectations when professional or operational expertise is not readily available.

3.3 REGIONAL/ISOLATION ALLOWANCE

Local governments eligible for the Regional/Isolation Allowance are listed in Table 3.

Table 3: Regional/Isolation Allowance

PART 4: HOUSING ALLOWANCE

This Part deals with the Housing Allowance that may be payable to Chief Executive Officers.

4.1 GENERAL

1. In recognition of the need for local governments to provide accommodation as a result of a lack of suitable housing or recruitment issues, on either a permanent or temporary basis, local governments are able to utilise this allowance as required.
2. When a local government utilises this allowance, the payment of the allowance should be properly justified and applied in a transparent manner.
3. Any accommodation provided under this Part must be located within or adjacent to the local government area in which the CEO is employed.
4. Local governments should tailor the provision of any housing allowance to suit their particular circumstances. This may include the CEO making contributions towards the cost of the accommodation.

4.2 APPLICABLE HOUSING ALLOWANCE

1. Where a local government owns a property and provides that property to the CEO for accommodation, the value of this accommodation will not be included in the Total Reward Package.
2. For reporting purposes, the value of the local government owned property shall be valued at the annual Gross Rental Value of the property as determined by the Valuer General.
3. Where a local government leases accommodation for the use of the CEO, the lease costs will not be included in the Total Reward Package.
4. For reporting purposes, the value of the local government leased property shall be the annual actual costs of the accommodation lease.

PART 5: MOTOR VEHICLE

This Part deals with the provision of motor vehicles to Chief Executive Officers.

5.1 GENERAL

1. For local governments generally, except those listed in Table 3 under Part 3 of this determination, the private benefit value of any motor vehicle provided to the CEO by the local government is to be included in the Total Reward Package.
2. For local governments listed in Table 3 under Part 3 of this determination, any motor vehicle provided to the CEO or an allowance provided to a CEO for use of a private motor vehicle for work-related purposes, is to be considered a tool of trade (i.e. a tool needed to undertake the duties of a CEO in these local governments) and any private benefit will not be considered as part of the Total Reward Package.

5.2 PRIVATE BENEFIT VALUE

1. The private benefit value of the motor vehicle will be dependent on the type of motor vehicle provided, method of ownership (i.e. local government owned or leased), maintenance and running costs, insurance, any applicable luxury car tax and the amount of private use of the vehicle (i.e. non-business use).
2. As a general rule, the private benefit value will be based upon the annual costs multiplied by the percentage of private use. 
3. Local governments and CEOs will need to agree on the most appropriate way to record the amount of private use in order to calculate the private benefit value.

PART 6: MEETING ATTENDANCE FEES

This Part deals with fees payable to council members for attendance at council and other meetings

6.1 GENERAL

1. Pursuant to section 5.98(1)(b) of the LG Act, a council member who attends a council meeting is entitled to be paid the fee set by the local government or the regional local government within the range determined in section 6.2 of this Part for council meeting attendance fees.
2. Pursuant to section 5.98(1)(b) and (2A)(b) of the LG Act, a council member who attends a committee meeting or (at the request of the local government or regional local government) a meeting of a type prescribed in regulation 30(3A) of the LG Regulations is entitled to be paid the fee set by the local government or regional local government within the range determined in section 6.3 of this Part for attending committee meetings or, as the case requires, meetings of that type.
3. Each of the following meetings is a type of meeting prescribed in regulation 30(3A) of the LG Regulations -
   • meeting of a WALGA Zone, where the council member is representing a local government as a delegate elected or appointed by the local government;
   • meeting of a Regional Road Group established by Main Roads Western Australia, where the council member is representing a local government as a delegate elected or appointed by the local government;
   • council meeting of a regional local government where the council member is the deputy of a member of the regional local government and is attending in the place of the member of the regional local government;
   • meeting other than a council or committee meeting where the council member is attending at the request of a Minister of the Crown who is attending the meeting;
   • meeting other than a council meeting or committee meeting where the council member is representing a local government as a delegate elected or appointed by the local government.
4. Pursuant to section 5.99 of the LG Act, a local government or regional local government may decide by an absolute majority that instead of paying council members an attendance fee referred to in section 5.98(1) of the LG Act, it will pay all council members who attend council or committee meetings a fee set within the range for annual fees determined in section 6.4 of this Part.
5. Regulation 30(3C) of the LG Regulations prevents the payment of a fee to a council member for attending a meeting of a type prescribed in regulation 30(3A) of those regulations if –
   • the person who organises the meeting pays the council member a fee for attending the meeting; or
   • the council member is paid an annual fee in accordance with section 5.99 of the LG Act; or
   • the council member is deputising for a council member at a meeting of a regional local government and the member of the regional local government is paid an annual fee in accordance with section 5.99 of the LG Act.
6. In determining the fees set out in this Part, the Tribunal has taken into account a range of factors including –
   • the time required to prepare adequately for the meetings including consideration of agenda papers, site visits related to agenda items and consultation with council staff and community members;
   • the role of the council member, mayor or president including, but not limited to, representation, advocacy, and oversight and determination of policy and local legislation;
   • particular responsibilities associated with the types of meetings attended;
   • responsibilities of a mayor, president or chair to preside over meetings; and
   • the relative “size” of the local government as reflected in the Tribunal’s local government banding model.
7. The Tribunal has not determined a specific meeting attendance fee for the purposes of section 5.98(1)(a) or (2A)(a) of the LG Act.

6.2 COUNCIL MEETING ATTENDANCE FEES – PER MEETING

1. The ranges of fees in Table 4 and Table 5 apply where a local government or regional local government decides by an absolute majority to pay a council member a fee referred to in section 5.98(1)(b) of the LG Act for attendance at a council meeting.

Table 4: Council meeting fees per meeting – local governments

For a council member other than the mayor or president

For a council member who holds the office of mayor or president

Table 5: Council meeting fees per meeting – regional local governments

For a council member other than the chair

For a council member who holds the office of chair

6.3 COMMITTEE MEETING AND PRESCRIBED MEETING ATTENDANCE FEES – PER MEETING

1. The ranges of fees in Table 6 and Table 7 apply where a local government or regional local government decides to pay a council member a fee referred to in –
   • section 5.98(1)(b) of the LG Act for attendance at a committee meeting; or
   • section 5.98(2A)(b) of the LG Act for attendance at a meeting of a type prescribed in regulation 30(3A) of the LG Regulations.

Table 6: Committee meeting and prescribed meeting fees per meeting – local governments

For a council member (including the mayor or president)

Table 7: Committee meeting and prescribed meeting fees per meeting – regional local governments

For a council member (including the chair)

6.4 ANNUAL ATTENDANCE FEES IN LIEU OF COUNCIL MEETING, COMMITTEE MEETING AND PRESCRIBED MEETING ATTENDANCE FEES

1. The ranges of fees in Table 8 and Table 9 apply where a local government or regional local government decides by an absolute majority that, instead of paying council members an attendance fee referred to in section 5.98 of the LG Act, it will pay an annual fee to all council members who attend council, committee or prescribed meetings.

Table 8: Annual attendance fees in lieu of council meeting, committee meeting and prescribed meeting attendance fees – local governments

For a council member other than the mayor or president

For a council member who holds the office of mayor or president

Table 9: Annual attendance fees in lieu of council meeting, committee meeting and prescribed meeting attendance fees – regional local governments

For a council member other than the chair

For a council member who holds the office of chair

PART 7: ANNUAL ALLOWANCE FOR A MAYOR, PRESIDENT, CHAIR, DEPUTY MAYOR, DEPUTY PRESIDENT AND DEPUTY CHAIR

This Part deals with annual allowances payable to mayors, presidents, chair and their deputies, in addition to any entitlement to meeting attendance fees or the reimbursement of expenses.

7.1 GENERAL

1. Pursuant to section 5.98(5) of the LG Act, the mayor or president of a local government and the chair of a regional local government are entitled, in addition to any fees or reimbursement of expenses payable under section 5.98(1) or (2), to be paid the annual allowance set by the local government or regional local government within the range determined in section 7.2 of this Part.
2. Pursuant to section 5.98A(1) of the LG Act, a local government or regional local government may decide, by an absolute majority, to pay the deputy mayor or deputy president of the local government, or the deputy chair of the regional local government, an allowance of up to the percentage that is determined by the Tribunal of the annual allowance to which the mayor or president of the local government, or the chair of the regional local government, is entitled under section 5.98(5) of the LG Act. That percentage is determined in section 7.3 of this Part. This allowance is in addition to any fees or reimbursement of expenses payable to the deputy mayor, deputy president or deputy chair under section 5.98 of the LG Act.
3. In determining the allowances set out in this Part, the Tribunal has taken into account a range of factors including the following –
   • the leadership role of the mayor, president or chair;
   • the statutory functions for which the mayor, president or chair is accountable;
   • the ceremonial and civic duties required of the mayor, president or chair, including local government business related entertainment;
   • the responsibilities of the deputy mayor, deputy president or deputy chair when deputising;
   • the relative “size” of the local government as reflected in the Tribunal’s local government banding model;
   • the civic, ceremonial and representation duties particular to the Lord Mayor of Western Australia’s capital city.

7.2 ANNUAL ALLOWANCE FOR A MAYOR, PRESIDENT OR CHAIR

1. The ranges of allowances in Table 10 apply where a local government sets the amount of the annual local government allowance to which a mayor or president is entitled under section 5.98(5) of the LG Act.
2. The range of allowances in Table 11 apply where a regional local government sets the amount of the annual local government allowance to which a chair is entitled under section 5.98(5) of the LG Act.
3. Despite the provisions of subsection (1), the Perth City Council is to set the amount of the annual local government allowance to which the Lord Mayor is entitled within the range of $61,509 to $137,268.

Table 10: Annual allowance for a mayor or president of a local government

For a mayor or president

Table 11: Annual allowance for a chair of a regional local government

For a chair

7.3 ANNUAL ALLOWANCE FOR A DEPUTY MAYOR, DEPUTY PRESIDENT OR DEPUTY CHAIR

1. The percentage determined for the purposes of section 5.98A(1) of the LG Act is 25 per cent.

PART 8: EXPENSES TO BE REIMBURSED

This Part deals with expenses for which council members are entitled to be reimbursed.

8.1 GENERAL

1. Pursuant to section 5.98(2)(a) and (3) of the LG Act, a council member who incurs an expense of a kind prescribed in regulation 31(1) of the LG Regulations is entitled to be reimbursed for the expense to the extent determined in section 8.2(1) to (5) of this Part.
2. Regulation 31(1) of the LG Regulations prescribes the following kinds of expenses that are to be reimbursed:
   • rental charges incurred by a council member in relation to one telephone and one facsimile machine; and
   • child care and travel costs incurred by a council member because of the member’s attendance at a council meeting or a meeting of a committee of which he or she is also a member.
3. Pursuant to section 5.98(2)(a) and (3) of the LG Act, a council member who incurs an expense of a kind prescribed in regulation 32(1) of the LG Regulations is entitled to be reimbursed for the expense to the extent determined in section 8.2(6) to (8) of this Part.
4. Regulation 32(1) of the LG Regulations prescribes the following kinds of expenses that may be approved by a local government for reimbursement 
   •  an expense incurred by a council member in performing a function under the express authority of the local government;
   • an expense incurred by a council member to whom paragraph (a) applies by reason of the council member being accompanied by not more than one other person while performing the function if, having regard to the nature of the function, the local government considers that it is appropriate for the council member to be accompanied by that other person; and
   • an expense incurred by a council member in performing a function in his or her capacity as a council member.

8.2 EXTENT OF EXPENSES TO BE REIMBURSED

1. The extent to which a council member can be reimbursed for rental charges in relation to one telephone and one facsimile machine is the actual expense incurred by the council member.
2. The extent to which a council member can be reimbursed for child care costs incurred because of attendance at a meeting referred to in regulation 31(1)(b) of the LG Regulations is the actual cost per hour or $30 per hour, whichever is the lesser amount.
3. The extent to which a council member of a local government can be reimbursed for reasonable travel costs referred to in regulation 31(1)(b) of the LG Regulations is:
   • if the person lives or works in the local government district or an adjoining local government district, the actual cost for the person to travel from the person’s place of residence or work to the meeting and back; or
   • if the person does not live or work in the local government district or an adjoining local government district, the actual cost, in relation to a journey from the person’s place of residence or work and back:
     • for the person to travel from the person’s place of residence or work to the meeting and back; or
     • if the distance travelled referred to in subparagraph (i) is more than 100 kilometres, for the person to travel from the outer boundary of an adjoining local government district to the meeting and back to that boundary.
4. The extent to which a council member of a regional local government can be reimbursed for reasonable travel costs referred to in regulation 31(1)(b) of the LG Regulations is the actual cost for the person to travel from the person’s place of residence or work to the meeting and back.
5. For the purposes of subsections (3) and (4), travel costs incurred while driving a privately owned or leased vehicle (rather than a commercially hired vehicle) are to be calculated at the same rate contained in Section 30.6 of the Local Government Officers’ (Western Australia) Interim Award 2011 as at the date of this determination.
6. The extent to which a council member can be reimbursed for child care costs incurred in any of the circumstances referred to in regulation 32(1) of the LG Regulations is the actual cost per hour or $30 per hour, whichever is the lesser amount.
7. The extent to which a council member can be reimbursed for intrastate or interstate travel and accommodation costs incurred in any of the circumstances referred to in regulation 32(1) of the LG Regulations is at the same rate applicable to the reimbursement of travel and accommodation costs in the same or similar circumstances under the Public Service Award 1992 issued by the Western Australian Industrial Relations Commission as at the date of this determination.
8. The extent to which a council member can be reimbursed for any other cost incurred under regulation 32(1) of the LG Regulations is the actual cost upon presentation of sufficient evidence of the cost incurred.

PART 9: ANNUAL ALLOWANCES IN LIEU OF REIMBURSEMENT OF EXPENSES

This Part deals with annual allowances that a local government or regional local government may decide to pay.

9.1 GENERAL

1. Pursuant to section 5.99A of the LG Act, a local government or regional local government may decide by absolute majority that instead of reimbursing council members under the LG Act section 5.98(2) for all of a particular type of expense, it will pay all council members, for that type of expense, the annual allowance determined in section 9.2 of this Part or, as the case requires, an annual allowance within the range determined in that section.
2. Where a local government or regional local government has decided to pay council members an annual allowance for an expense of a particular type instead of reimbursing expenses of that type under section 5.98(2) of the LG Act, section 5.99A of the LG Act provides for reimbursement of expenses of that type in excess of the amount of the allowance.
3. In determining the maximum annual allowance for expenses of a particular type, the Tribunal has taken into account a range of factors including the following:
   • the intent of the allowance to reflect the extent and nature of the expenses incurred and not to result in a windfall gain for council members;
   • the capacity of local governments to set allowances appropriate to their varying operational needs;
   • the particular practices of local governments in the use of information and communication technology (e.g. laptop computers, iPads); and
   • the varying travel requirements of council members in local governments associated with geography, isolation and other factors.

9.2 ANNUAL ALLOWANCES DETERMINED INSTEAD OF REIMBURSEMENT FOR PARTICULAR TYPES OF EXPENSES

1. In this section:
   • ICT expenses means: 
     1. rental charges in relation to one telephone and one facsimile machine, as prescribed by regulation 31(1)(a) of the LG Regulations; or
     2. any other expenses that relate to information and communications technology (for example, telephone call charges and internet service provider fees) and that are a kind of expense prescribed by regulation 32(1) of the LG Regulations;
   • travel and accommodation expenses means:
     1. travel costs, as prescribed by regulation 31(1)(b) of the LG Regulations; or
     2. any other expenses that relate to travel or accommodation and that are a kind of expense prescribed by regulation 32(1) of the LG Regulations.
2. For the purposes of section 5.99A(b) of the LG Act, the minimum annual allowance for ICT expenses is $500 and the maximum annual allowance for ICT expenses is $3,500.
3. For the purposes of section 5.99A(a) of the LG Act, the annual allowance for travel and accommodation expenses is $50.

SCHEDULE 1: LOCAL GOVERNMENT BAND ALLOCATIONS

LOCAL GOVERNMENT ELECTED MEMBERS EXPLANATORY NOTES

This section does not form part of the determination

1. Entitlements:

The entitlement of a council member to a fee, allowance or reimbursement of an expense established under the LG Act, the LG Regulations and this determination, cannot be proscribed, limited or waived by a local government. Any eligible claim against those entitlements is to be paid in accordance with the applicable financial procedures of the local government.

2. Local governments to set amounts within the range determined

Where the Tribunal has determined a minimum and maximum amount for a fee, expense or allowance for members of the council of a local government or a regional local government, each council is to set, by absolute majority, an amount within the relevant range determined and the amount set will be payable to elected council members.

3. Superannuation

Nothing in this determination establishes a liability for the payment of superannuation by local governments. Elected council members are eligible for superannuation payments if their council has resolved unanimously to become an Eligible Local Governing Body (ELGB) pursuant to section 221A and section 221B of the Income Tax Assessment Act 1936 (Cwlth). Where the council is an ELGB, it is deemed to have an employer/employee relationship with its elected council members and this attracts the application of a number of statutory obligations. Alternative arrangements described in Australian Taxation Office (ATO) Interpretative Decision ATO ID 2007/205 allow for elected council members and councils to agree for whole or part of meeting attendance fees to be paid into a superannuation fund. Where the council is an ELGB, fees for attendance at council, committee and prescribed meetings (whether paid via a per meeting fee or annual allowance) are to be inclusive of any superannuation guarantee liability. This information is not published by way of legal or financial advice.