What you need to know about the new Office of the Local Government Inspector

Western Australia has entered a new era of local government oversight. On 6 December 2024, the Local Government Amendment Act 2024 (WA) became law and resulted in various amendments to the Local Government Act 1995 (WA) (the Act). These reforms mark the second stage of major reforms to the Act.  One of the most significant reforms is the introduction of the Local Government Inspector (Inspector), a new statutory role that officially commenced on 1 January 2026.

Why These Reforms Matter

Local governments play a crucial role in shaping communities by providing essential services, managing community assets, and influencing local development. However, persistent non‑compliance, poor governance or interpersonal conflict can undermine public trust and negatively impact outcomes.

The introduction of the Office of the Local Government Inspector aims to strengthen accountability, improve governance, and ensure early intervention where dysfunction arises within local governments.

The Role of the Local Government Inspector

The Inspector is an independent statutory officer appointed to oversee the performance and compliance of all local governments. The role is deliberately designed to enable early, hands‑on intervention where councils show signs of dysfunction.

Key roles of the Inspector include:

1.         Early Intervention: The Inspector can step in at the first signs of governance issues, before conflicts escalate or service delivery is affected.

2.         Handling Complaints: Complaints can be made directly to the Inspector. This centralises and streamlines the complaint process for improved fairness and efficiency.

3.         Investigating Non‑Compliance: The Inspector can investigate breaches of the Act and direct remedial action.

4.         Appointing Monitors: Where council behaviour or governance structures show deeper issues, the Inspector can appoint monitors to investigate and assist a local government on the ground.

5.         Recommending Dismissals: If a council or individual councillor is unable or unwilling to rectify serious issues, the Inspector can recommend dismissal to the Minister.

6.         Initiating Inspector’s Inquiries: In cases of severe dysfunction, the Inspector may launch an inquiry.

What Are Monitors?

Monitors are a new type of intervention tool. Monitors act as specialist advisors appointed by the Inspector when a local government shows signs of sustained dysfunction.

A monitor may have expertise in local government administration, law, finance, governance or conflict resolution

Monitors may be afforded various power, depending on the nature and purpose of their appointment. These powers can include the power to:

  • inspect local government documents;

  • attend closed council meetings; and

  • require councillors or employees to attend meetings aimed at resolving issues.

Monitors will then report their findings to the Inspector, where the Inspector may take further action, especially if any issues remain unresolved.

Importantly, the local government must pay the costs associated with the appointment of a monitor, acting as an added incentive for councils to maintain good governance.

What This Means for Local Governments

For most councils, the reforms will simply provide access to earlier support and clearer pathways for resolving governance issues. For others, especially those with persistent or systemic problems, the oversight may be more direct and structured.

Local governments can expect:

  • proactive engagement from the Inspector;

  • greater scrutiny of complaints and conflict management;

  • stronger expectations for transparency and compliance; and

  • clearer consequences for ongoing dysfunction.

These changes reflect a sector‑wide shift toward improved public trust and better service delivery.

Ultimately, the Inspector aims to ensure local governments are well‑functioning, aligned with the law, and acting in the best interest of the communities they serve.

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