Improving the local government system

Reforming the local government sector

The Local Government Priority Reform Program 2024-26 is the Tasmanian Government's action plan for strengthening the local government sector. It focuses on implementing key recommendations from past reviews.

As part of the program, the government is currently progressing new legislation:

• Targeted amendments to the Local Government Act to improve local representation, elevate standards of conduct and enhance the strategic capability of the sector. This also includes changes to councillor allowances and numbers.
• Changes to local government electoral legislation to establish a new framework for future council elections and to deliver reforms to the Local Government Act in supporting the broader elections framework.

Local Government Priority Reform Program 2024-2026

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Purpose of the program

The program aims to deliver targeted legislative and operational changes to improve the performance, accountability, and sustainability of local government in Tasmania.

It addresses key challenges identified through the Future of Local Government Review and incorporates feedback from councils and communities to ensure reforms are practical and community focused.

The program focuses on five priorities for reform.

1. Lifting standards of professionalism, conduct, and integrity.
2. Driving a high performing, transparent, and accountable sector.
3. Improving local democracy and representation.
4. Supporting council financial sustainability.
5. Supporting council and community-led structural reform.

Targeted amendments to the Local Government Act

In early 2026, the Local Government Amendment (Targeted Reform) Bill passed the House of Assembly in the Tasmanian Parliament.

Proposed reforms include:

• New serious councillor misconduct provisions.
• More flexible and effective early intervention tools to address emerging governance challenges in councils.
• Legislating core councillor learning and development requirements.
• Supporting more consistent data and transparency (including around council rates).
• Establishing the architecture for improving council strategic direction setting and planning, underpinned by a stronger focus on community engagement and wellbeing.
• Enhancing the efficiency and transparency of the code of conduct complaints handling framework.
• Supporting provisions for remote attendance at closed council meetings.

Consultation

The consultation for these changes happened over two phases. The first phase ran from December 2024 until March 2025. A discussion paper outlined the proposed legislative amendments.

Feedback from the first phase helped shape the development of the draft Local Government Amendment (Targeted Reform) Bill. Consultation on the draft Bill made up the second phase, which closed November 2025.

Councillor allowances and numbers

Changes to councillor allowances and numbers are also being progressed as part of reforms to the Local Government Amendment (Targeted Reform) Bill.

Pending approval by the Tasmanian Parliament, the changes will take effect in time for the October 2026 local government elections. Elections will be held for the new number of councillors in each municipal area, and the new allowances (indexed) will apply from 1 November 2026.

Background and consultation

Between September and November 2025, the Tasmanian Government released a discussion paper proposing reforms to local councillor numbers and allowances. The proposed reforms respond to several issues with Tasmania’s current framework, including:

• Some of the highest numbers of councillors per capita but also some of the lowest allowances in Australia.
• Representational inconsistencies between similar councils caused by historic, ad-hoc reviews.

Following consultation, the Tasmanian Government has agreed to a final reform position, which includes some changes to the original proposal, in response to feedback on the discussion paper. In summary, the final reform package will see:

• All councils having either nine or seven elected members, unless specified councils formally request that they adopt a five-member model under new statutory provisions to be included in the Local Government Act. This will reduce the total number of councillors from 263 to 213.
• Retention of the proposed revised six allowances categories, which are set according to the relative scale and representational responsibilities of councils.
• Inclusion in the council scoring methodology of the total number of rateable properties and total length of council roads (including unsealed roads) to better reflect relative representational need and demands on elected members.
• The reform proposal remaining cost neutral overall. Net savings at the statewide level are estimated at approximately $85,000.
• No new statutory superannuation or quorum management provisions.
• Legislating the methodology in a schedule of the Local Government Act for future numbers and allowances reviews, with a statutory requirement to routinely apply the methodology every four years.
• Creating a head of power for the Governor, by order and on the recommendation of the Minister for Local Government, to adjust councillor numbers in accordance with future reviews.

Changes to local government electoral legislation

The Tasmanian Government is drafting legislation that will deliver important reforms to local government elections in Tasmania.

1. A new, standalone Local Government Electoral Bill, which will establish a contemporary, flexible framework for future council elections.
2. A Local Government Amendment (Electoral Reforms) Bill, which will deliver reforms to the Local Government Act in supporting the broader elections framework.

Key reforms in the Local Government Electoral Bill include flexibility for the Tasmanian Electoral Commission to determine the method of an election, increased transparency in political gifts and donations, strengthened advertising rules, and changes to voter and candidate eligibility.

The draft Local Government Amendment (Electoral Reforms) Bill repeals existing electoral provisions from the Local Government Act, introduces caretaker provisions for councils during election periods and reforms to the current interests management framework for local councillors.

Consultation

The consultation for these changes happened over two phases. The first phase took place between February 2025 and April 2025. A discussion paper outlined the proposed legislative amendments.

Feedback from the first phase helped shape the development of the draft legislation. Consultation on the draft legislation made up the second phase, which closed February 2026.