{"id":"local-government-finance-authority-act-1983","name":"Local Government Finance Authority Act 1983","slug":"local-government-finance-authority-act-1983","collection":"act","jurisdiction":"sa","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":105829,"registerId":"sa-local-government-finance-authority-act-1983-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Local Government Finance Authority Act 1983","content":"South Australia\nLocal Government Finance Authority Act 1983\nAn Act to establish a corporation to be known as the Local Government Finance Authority of South Australia; to make provision relating to the financial powers and relations of the Authority, councils and other bodies; and for other purposes.\n\nContents\nPart 1—Preliminary\n1\tShort title\n3\tInterpretation\nPart 2—The Local Government Finance Authority of South Australia\nDivision 1—Establishment of the Authority\n4\tEstablishment of the Authority\n5\tCouncils to be members of the Authority\nDivision 2—The Board of Trustees of the Authority\n6\tAuthority to be managed by Board of Trustees\n7\tConstitution of the Board\n8\tTerms and conditions of office\n9\tPresiding Member\n10\tProcedures etc of the Board\n11\tValidity of acts of the Board and immunity of members\n12\tDisclosure of interest\n13\tAllowances and expenses for members\nDivision 3—General meetings of the Authority\n14\tAnnual general meetings and special general meetings\n15\tRepresentation at meetings\n16\tQuorum etc\n17\tProcedure at general meetings\n18\tBusiness of general meetings\n20\tResolutions of general meetings\nPart 3—The Authority and local government financing\n21\tFunctions and powers of the Authority\n22\tFinancial management\n23\tMoney provided by Treasurer\n24\tGuarantee by Treasurer etc\n25\tApprovals by Minister or Treasurer\n26\tPower of councils etc to borrow money from or deposit money with Authority\nPart 4—Miscellaneous\n28\tDelegation by the Board\n29\tStaff\n31\tAuthority may charge fees\n31A\tTax equivalents\n32\tExemption of Authority from State taxes etc\n32A\tEvidentiary provision\n33\tAccounts and audit\n34\tAnnual report\n35\tActivities with prescribed bodies\n36\tRegulations\n37\tRules of the Authority\nLegislative history\n\nThe Parliament of South Australia enacts as follows:\nPart 1—Preliminary\n1—Short title\nThis Act may be cited as the Local Government Finance Authority Act 1983.\n3—Interpretation\nIn this Act, unless the contrary intention appears:\nthe Authority means the Local Government Finance Authority of South Australia established under Part 2;\nthe Board means the Board of Trustees of the Authority established under Part 2;\ncouncil means a council as defined in the Local Government Act 1934;\ncouncil representative means a person appointed by a council under Part 2 to represent it at a general meeting of the Authority;\nLGA means the Local Government Association of South Australia;\nloan means any form of financial accommodation (not being a grant) and lend and borrow have corresponding meanings;\nprescribed local government body means—\n\t(a)\ta controlling authority established under Part 13 of the Local Government Act 1934; or\n\t(b)\tthe LGA; or\n\t(c)\tany other body—\n\t(i)\testablished by or for councils or for local government purposes; and\n\t(ii)\tprescribed for the purposes of this paragraph;\nrepresentative member of the Board means a member of the Board—\n\t(a)\telected to the Board; or\n\t(b)\tappointed to the Board upon the nomination of the LGA,\nunder Part 2;\nsecurity includes any document evidencing indebtedness.\nPart 2—The Local Government Finance Authority of South Australia\nDivision 1—Establishment of the Authority\n4—Establishment of the Authority\n\t(1)\tThe Local Government Finance Authority of South Australia is established.\n\t(2)\tThe Authority—\n\t(a)\tis a body corporate with perpetual succession and a common seal; and\n\t(b)\tis capable in its corporate name of acquiring, holding, dealing with and disposing of real and personal property; and\n\t(c)\tis capable of acquiring or incurring any other rights or liabilities and of suing and being sued in its corporate name; and\n\t(d)\thas the powers, authorities, duties and functions prescribed by or under this or any other Act.\n\t(3)\tIn any legal proceedings, an apparently genuine document purporting to bear the common seal of the Authority will be presumed, in the absence of proof to the contrary, to have been duly executed by the Authority.\n\t(4)\tThe Authority is a statutory authority established for the benefit of councils and other prescribed local government bodies within the State. It is not part of the Crown, nor is it an agency or instrumentality of the Crown.\n\t(5)\tThe Authority cannot be brought under the operation of the Public Corporations Act 1993.\n5—Councils to be members of the Authority\nEvery council is a member of the Authority.\nDivision 2—The Board of Trustees of the Authority\n6—Authority to be managed by Board of Trustees\n\t(1)\tThe Authority is managed and administered by a Board of Trustees constituted in accordance with this Division.\n\t(2)\tAn act done or decision made by the Board in the management or administration of the affairs of the Authority is an act or decision of the Authority.\n7—Constitution of the Board\n\t(1)\tSubject to this section, the Board is constituted of seven members of whom—\n\t(a)\ttwo are persons elected in accordance with the rules of the Authority;\n\t(b)\ttwo are persons appointed by an annual general meeting of the Authority upon the nomination of the LGA;\n\t(c)\tone is a person appointed by the Minister;\n\t(d)\tone is a person appointed by the Treasurer;\n\t(e)\tone is the person for the time being holding or acting in the office of Secretary of the LGA.\n\t(2)\tAt least one member of the Board must be a woman and at least one member must be a man.\n\t(3)\tA person is not eligible for election as a member of the Board under subsection (1)(a) unless that person is—\n\t(a)\ta member of a council; or\n\t(b)\tan officer of a council.\n\t(3a)\tThe Board may co-opt as an additional member or as additional members of the Board one or two persons with financial expertise to assist the Board in the performance of its functions.\n\t(4)\tSubject to subsection (5), a member of the Board may appoint a suitable person to act as his or her deputy and that person may, in the absence of that member, act as a member of the Board.\n\t(5)\tThe appointment of a deputy under subsection (4) by a representative member of the Board is subject to the approval of the Board.\n8—Terms and conditions of office\n\t(1)\tSubject to this section, a representative member of the Board holds office for a term of two years commencing on 1 January in the year next succeeding the year in which he or she was elected or appointed.\n\t(3)\tA representative member of the Board is eligible for re-election or re-appointment.\n\t(4)\tA representative member of the Board may be removed from office by resolution passed at a general meeting of the Authority if the member—\n\t(a)\tbecomes mentally or physically incapable of satisfactorily carrying out official duties; or\n\t(b)\tis guilty of neglect of duty or dishonourable conduct.\n\t(5)\tThe office of a representative member of the Board becomes vacant if the member—\n\t(a)\tdies; or\n\t(b)\tcompletes a term of office; or\n\t(c)\tresigns by written notice to the Board; or\n\t(d)\tis removed from office pursuant to subsection (4).\n\t(6)\tIf a casual vacancy occurs in the office of a representative member of the Board, the Board may appoint a suitable person to fill the vacancy and that person will hold office for the balance of the term of his or her predecessor.\n\t(7)\tThe following provisions apply with respect to the appointment of members of the Board by the Minister or the Treasurer:\n\t(a)\tan appointment will be made on conditions determined by the Minister or the Treasurer (as the case may be) and for a term, not exceeding two years, specified in the instrument of appointment; and\n\t(b)\ta person who has been appointed by the Minister or the Treasurer is eligible for reappointment at the expiration of a term of office; and\n\t(c)\tif a casual vacancy occurs in the office of a member appointed by the Minister or the Treasurer, the Minister or the Treasurer (as the case may be) may appoint a suitable person to the vacant office; and\n\t(d)\ta person who has been appointed by the Minister or the Treasurer may be removed from office by the Minister or the Treasurer (as the case may be)—\n\t(i)\tfor breach of, or non-compliance with, a condition of appointment; or\n\t(ii)\ton the ground that the person has become mentally or physically incapable of satisfactorily carrying out official duties; or\n\t(iii)\tfor neglect of duty or dishonourable conduct; and\n\t(e)\tthe office of a person appointed by the Minister or the Treasurer becomes vacant if the person—\n\t(i)\tdies; or\n\t(ii)\tcompletes a term of office and is not reappointed; or\n\t(iii)\tresigns by written notice to the Minister or the Treasurer (as the case may be); or\n\t(iv)\tis removed from office pursuant to paragraph (d).\n\t(8)\tThe following provisions apply with respect to the appointment of a co-opted member of the Board:\n\t(a)\tan appointment will be made on conditions determined by the Board and may be limited in accordance with the terms of the instrument of appointment; and\n\t(b)\tan appointment may be terminated at any time by resolution of the Board or the Authority.\n9—Presiding Member\nThe Presiding Member and Deputy Presiding Member of the Board will be appointed by the Board from the representative members of the Board.\n10—Procedures etc of the Board\n\t(1)\tA quorum at a meeting of the Board consists of one-half of the total number of its members (ignoring any fraction resulting from the division) plus one.\n\t(2)\tThe Presiding Member will, if present at a meeting of the Board, preside at that meeting and, in the Presiding Member's absence, the Deputy Presiding Member will preside, and in the absence of both the Presiding Member and the Deputy Presiding Member, the members present will decide who is to preside at the meeting.\n\t(3)\tA decision carried by a majority of the votes of the members of the Board present at a meeting is a decision of the Board.\n\t(4)\tEach member of the Board is entitled to one vote on a matter arising for decision by the Board, and the person presiding at the meeting has, in the event of an equality of votes, a second or casting vote.\n\t(5)\tThe Board must cause accurate minutes to be kept of the business conducted at meetings of the Board.\n\t(5a)\tA decision in which all members of the Board concur is a decision of the Board despite the fact that it is not made at a meeting of the Board.\n\t(5b)\tThe Authority must cause a record to be kept of any decision made under subsection (5a).\n\t(6)\tSubject to this Act, the business of the Board will be conducted in a manner determined by the Board.\n11—Validity of acts of the Board and immunity of members\n\t(1)\tAn act or proceeding of the Board is not invalid by reason only of a vacancy in its membership or a defect in the appointment or election of a member.\n\t(2)\tNo personal liability attaches to a member of the Board for an act or omission by that member or the Board in good faith in the exercise or discharge of powers, duties or functions by the member or the Board under this Act.\n\t(3)\tA liability that would, but for subsection (2), lie against a member of the Board lies against the Authority.\n12—Disclosure of interest\n\t(1)\tA member of the Board who is directly or indirectly interested in a contract, or proposed contract, of the Authority—\n\t(a)\tmust, as soon as he or she becomes aware of the contract or proposed contract, disclose the nature of the interest to the Board; and\n\t(b)\tmust not take part in any deliberations or decision of the Board with respect to that contract.\nMaximum Penalty: $10 000 or imprisonment for 2 years.\n\t(2)\tDespite subsection (1), if a member of the Board is a member, officer, ratepayer or elector of a council with which the Authority has contracted or proposes to contract, the member is not, by reason of that fact, prevented from taking part in any deliberations or decisions of the Board that have common application to that contract or proposed contract and contracts or proposed contracts with other councils.\n\t(3)\tA disclosure made under this section must be recorded in the minutes of the Board.\n\t(4)\tIf a member makes a disclosure of interest in respect of a contract or proposed contract in accordance with this section—\n\t(a)\tthe contract is not void, or liable to be avoided, on any ground arising from the member's interest in the contract; and\n\t(b)\tthe member is not liable to account to the Authority for any profits derived from the contract.\n13—Allowances and expenses for members\n\t(1)\tThe Authority must pay such allowances and expenses (if any) as may be approved by a general meeting of the Authority in respect of the services of the members of the Board.\n\t(2)\tAn amount payable by way of allowances in respect of a member appointed by the Minister or the Treasurer must be paid in accordance with an arrangement approved by the Minister or the Treasurer (as the case may be) and an amount payable in respect of the Secretary of the LGA must be paid to the LGA.\n\t(3)\tThe Board may determine to pay to co-opted members of the Board amounts that are additional to the allowances payable under subsection (1).\nDivision 3—General meetings of the Authority\n14—Annual general meetings and special general meetings\n\t(1)\tThe Board must convene annual general meetings of the Authority.\n\t(2)\tA special general meeting of the Authority must be held—\n\t(a)\tupon request in writing made to the Board by not less than one-quarter of the total number of councils; or\n\t(b)\tupon a resolution of the Board requiring the convening of such a meeting.\n\t(3)\tGeneral meetings of the Authority will be held at such times and places as are fixed by the Board by at least six weeks notice, in writing, delivered or posted to each council.\n\t(4)\tIf a request is made for a special general meeting under subsection (2)(a), a special general meeting must be held in response to the request within ten weeks of the making of the request.\n15—Representation at meetings\n\t(1)\tEach council is entitled to appoint a person to represent it at a general meeting of the Authority.\n\t(2)\tEach council representative is entitled to have one vote on any motion before a general meeting of the Authority.\n16—Quorum etc\n\t(1)\tThe prescribed number of council representatives constitutes a quorum for a general meeting of the Authority and no business will be transacted at a general meeting of the Authority unless a quorum is present.\n\t(2)\tIn this section, a reference to the prescribed number of council representatives means a number ascertained by dividing the total number of councils by two, ignoring any fraction resulting from the division, and adding one.\n17—Procedure at general meetings\n\t(1)\tSubject to this section, the Presiding Member of the Board will preside at a general meeting of the Authority.\n\t(2)\tIf the Presiding Member of the Board is absent from a general meeting of the Authority, the Deputy Presiding Member will preside, and in the absence of both the Presiding Member and the Deputy Presiding Member, the council representatives present will decide who is to preside at the meeting.\n\t(3)\tA motion is passed at a general meeting of the Authority if carried by a majority of the votes of the council representatives present at the meeting.\n18—Business of general meetings\nThe business of a general meeting of the Authority is as follows:\n\t(a)\tto receive and consider any report of the Board presented to the meeting;\n\t(b)\tto consider and approve or disapprove any proposals submitted to the meeting by the Board;\n\t(c)\tto consider and pass resolutions with respect to any matter relating to the Authority or its affairs raised for consideration at the meeting (whether by the Board or a council or otherwise);\n\t(d)\tin the case of an annual meeting—to declare elected and appoint the representative members of the Board as contemplated by Division 2 (if any such members are to be elected or appointed in that year).\n20—Resolutions of general meetings\nIf a resolution is passed at a general meeting of the Authority, the Board must, at its next meeting after the passing of the resolution, give due consideration to the resolution and take such action (if any) as it considers appropriate in relation to the matters raised by the resolution.\nPart 3—The Authority and local government financing\n21—Functions and powers of the Authority\n\t(1)\tThe functions of the Authority are—\n\t(a)\tto develop and implement borrowing and investment programmes for the benefit of councils and prescribed local government bodies; and\n\t(b)\tto engage in such other financial activities as are determined by the Minister, after consultation with the LGA, to be in the interests of local government.\n\t(2)\tFor the purposes of this Act, the Authority may—\n\t(a)\tborrow money within or outside Australia; or\n\t(c)\taccept money on deposit or loan from a council or prescribed local government body; or\n\t(d)\tlend or invest money held by the Authority; or\n\t(e)\tissue, sell, purchase, pay-off, repurchase, redeem, convert or otherwise deal in or with securities or shares; or\n\t(f)\topen and maintain accounts with an ADI or any other financial institution within or outside Australia; or\n\t(g)\tappoint an ADI or other person to act as underwriter, manager, trustee, attorney or agent in connection with any transaction within or outside Australia; or\n\t(h)\tenter into contracts of guarantee or indemnity; or\n\t(i)\tacquire, hold, deal with and dispose of real and personal property; or\n\t(ia)\tenter into partnerships and joint ventures and form companies; or\n\t(j)\tenter into any agreement or arrangement of a kind not previously mentioned in this subsection or acquire or incur any other rights or liabilities; or\n\t(k)\texercise any other powers that are necessary or expedient for the performance of its functions.\n\t(2a)\tThe Authority must not—\n\t(a)\tmake a loan, other than one to a council or prescribed local government body; or\n\t(b)\tmake an investment; or\n\t(c)\tenter into a partnership or joint venture or form a company,\nexcept with the approval of the Treasurer.\n\t(3)\tThe Authority may, at the request of a council or prescribed local government body, provide advice or assistance to the council or body in relation to the management of its financial affairs.\n22—Financial management\n\t(1)\tThe Authority must, in the exercise and performance of its powers and functions, act in accordance with proper principles of financial management and with a view to avoiding a loss.\n\t(2)\tAny surplus of funds remaining after deduction or allowance for the costs of the Authority, and for any liability under section 31A, may—\n\t(a)\tbe retained and invested by the Authority; or\n\t(b)\tbe distributed amongst the councils and prescribed local government bodies with which the Authority has entered into financial arrangements; or\n\t(c)\tbe applied for the benefit of any council or prescribed local government body or for any other local government purpose,\nas the Authority thinks fit.\n23—Money provided by Treasurer\n\t(1)\tThe Treasurer may, on behalf of the State, provide funds to the Authority on such terms and conditions as may be agreed between the Treasurer and the Authority.\n\t(2)\tThe amount of $10 000 000 is appropriated by this section from the Consolidated Account for application pursuant to subsection (1).\n24—Guarantee by Treasurer etc\n\t(1)\tLiabilities incurred or assumed by the Authority in pursuance of this Act are guaranteed by the Treasurer.\n\t(3)\tA borrowing of the Authority (other than by way of acceptance of money on deposit or loan from a council or prescribed local government body) requires the approval of the Treasurer (which may be absolute or conditional).\n\t(4)\tA liability of the Treasurer under a guarantee arising by virtue of subsection (1) will be satisfied out of the Consolidated Account which is appropriated by this section to the necessary extent.\n\t(5)\tThe Authority is liable to pay to the Treasurer such fees in respect of guarantees arising by virtue of subsection (1) as are agreed, in writing, between the Authority and the Treasurer or as are prescribed upon the recommendation of the Treasurer made after consultation with the Authority.\n25—Approvals by Minister or Treasurer\nA transaction under this Act for which the approval of the Minister or the Treasurer is required will be regarded as having that approval—\n\t(a)\twhether the approval is given in respect of that particular transaction or a class of transactions to which it belongs; and\n\t(b)\twhether the approval is given by the Minister or Treasurer or by a person acting with the authority of the Minister or Treasurer.\n26—Power of councils etc to borrow money from or deposit money with Authority\nDespite the provisions of any other Act, a council or a prescribed local government body may—\n\t(a)\tborrow money from the Authority; or\n\t(b)\tdeposit with, or lend to, the Authority any money of the council or body not immediately required for the purposes of the council or body; or\n\t(c)\tenter into such other financial transactions or arrangements with the Authority as are contemplated by this Act or approved by the Treasurer.\nPart 4—Miscellaneous\n28—Delegation by the Board\n\t(1)\tThe Authority may, by instrument in writing, delegate to the Presiding Member of the Board, an officer of the Authority or any other person any of its powers or functions under this Act.\n\t(2)\tA delegation under subsection (1) may be revoked by the Authority by instrument in writing and does not derogate from the power of the Authority to act itself in any matter.\n\t(3)\tIn any legal proceedings, an apparently genuine document purporting to be a certificate under the seal of the Authority containing particulars of a delegation under this section will, in the absence of proof to the contrary, be accepted as proof of the particulars.\n29—Staff\n\t(1)\tThe Authority may appoint such officers and employees as it considers necessary or expedient for the purposes of this Act.\n\t(2)\tThe Authority may enter into arrangements with one or more of the following:\n\t(a)\tthe LGA;\n\t(b)\ta council;\n\t(c)\tthe Minister administering an administrative unit of the Public Service of the State,\nunder which, upon terms mutually arranged, the Authority makes use of the services of officers or use of facilities of the LGA, council or administrative unit.\n31—Authority may charge fees\n\t(1)\tThe Authority may charge a fee of such amount as it thinks fit in respect of any transaction entered into or thing done for the benefit of a council, prescribed local government body or other person in pursuance of this Act.\n\t(2)\tA fee charged under subsection (1) may be deducted from an amount payable by the Authority to the council, prescribed local government body or other person charged.\n31A—Tax equivalents\n\t(1)\tThe Treasurer may require the Authority to make payments under this section of amounts that the Treasurer determines from time to time to be equivalent in effect to income tax and other taxes or imposts that the Authority does not pay to the Commonwealth but would be liable to pay under the law of the Commonwealth if it were constituted and organised in such manner as the Treasurer determines to be appropriate for the purposes of this section as a public company.\n\t(2)\tAmounts determined to be payable under this section must be paid to a deposit account established with the Treasurer under section 21 of the Public Finance and Audit Act 1987 entitled the \"Local Government Taxation Equivalents Fund\" at times, and in a manner, determined by the Treasurer.\n\t(3)\tInterest, at the standard commercial rate for accounts established under section 21 of the Public Finance and Audit Act 1987, will be payable on amounts held under subsection (2) and no fees or imposts will apply with respect to the maintenance or operation of the account.\n\t(4)\tAmounts held under subsection (2), together with interest accrued under subsection (3), will be applied for local government development purposes recommended by the LGA and agreed to by the Minister in accordance with principles agreed between the Minister and the LGA.\n32—Exemption of Authority from State taxes etc\n\t(1)\tThe Treasurer may, by notice published in the Gazette, exempt from a tax, duty or other impost, to the extent specified in the notice, any of the following:\n\t(a)\tthe Authority;\n\t(b)\tinstruments to which the Authority, a council or a prescribed local government body is a party;\n\t(c)\tinstruments which arise from or are connected with a transaction to which the Authority, a council or a prescribed local government body is a party.\n\t(2)\tA notice published in the Gazette pursuant to this section—\n\t(a)\thas effect according to its terms; and\n\t(b)\tmay be varied or revoked by a further such notice.\n32A—Evidentiary provision\nIn any legal proceedings, an apparently genuine document purporting to be a certificate signed by the Presiding Member of the Board (or if the Presiding Member is unavailable, the Deputy Presiding Member) certifying that a decision is a decision of the Board made in accordance with this Act will be accepted as proof of the matters stated in the certificate in the absence of proof to the contrary.\n33—Accounts and audit\n\t(1)\tThe Authority must—\n\t(a)\tkeep proper accounts of its financial affairs; and\n\t(b)\thave annual financial statements prepared in respect of each financial year; and\n\t(c)\tensure that its financial statements and reports fairly represent the financial position of the Authority; and\n\t(d)\tcomply with any instructions of the Treasurer under the Public Finance and Audit Act 1987.\n\t(2)\tThe Auditor-General may at any time audit the accounts of the Authority and must audit the annual financial statements.\n\t(3)\tFor the purposes of an audit, the Auditor-General may exercise in relation to the accounts of the Authority and the members and staff of the Authority the powers vested in the Auditor-General under the Public Finance and Audit Act 1987 in respect of accounts, accounting information and accounting officers.\n34—Annual report\n\t(1)\tThe Authority must, on or before 30 September in each year, deliver to the Minister, each council and the LGA a report upon the administration of this Act during the period of twelve months ending on the preceding 30 June.\n\t(2)\tThe report must—\n\t(a)\tincorporate the audited financial statements of the Authority for the relevant period; and\n\t(b)\tcontain any other information required by this Act,\nand may contain such other reports or information as the Authority thinks fit.\n\t(3)\tThe Minister must cause a copy of the report to be laid before each House of Parliament within 12 sitting days after his or her receipt of the report.\n35—Activities with prescribed bodies\n\t(1)\tThe Authority must, on or before 30 September in each year, deliver a special report to the Minister on the nature and scope of its business with prescribed local government bodies.\n\t(2)\tIf it appears to the Authority that a body that is a prescribed local government body by virtue of being prescribed by the regulations should no longer be so prescribed, the Authority must report to the Minister on the matter.\n36—Regulations\nThe Governor may make such regulations as are contemplated by, or necessary or expedient for the purposes of, this Act.\n37—Rules of the Authority\n\t(1)\tSubject to this Act, the Authority must have rules that—\n\t(a)\tmake provision for the nomination and election of persons as elected members of the Board; and\n\t(b)\tset out—\n\t(i)\tthe procedures for placing items of business on the agenda for general meetings of the Authority; and\n\t(ii)\tthe procedures to be followed at general meetings of the Authority.\n\t(2)\tThe Authority may—\n\t(a)\tmake provision in its rules for matters other than those referred to in subsection (1); and\n\t(b)\tamend its rules in accordance with procedures set out in the rules.\n\t(3)\tHowever, the rules, and any amendments to the rules, have no force or effect unless and until—\n\t(a)\tapproved at a general meeting of the Authority; or\n\t(b)\tapproved by a majority of the members of the Authority in accordance with a procedure set out in the rules.\n\t(4)\tThe annual report must include details of any amendments made to the rules during the relevant financial year.\nLegislative history\nNotes\n\t•\tPlease note—References in the legislation to other legislation or instruments or to titles of bodies or offices are not automatically updated as part of the program for the revision and publication of legislation and therefore may be obsolete.\n\t•\tEarlier versions of this Act (historical versions) are listed at the end of the legislative history.\n\t•\tFor further information relating to the Act and subordinate legislation made under the Act see the Index of South Australian Statutes or www.legislation.sa.gov.au.\nPrincipal Act and amendments\nNew entries appear in bold.\nYear\nNo\nTitle\nAssent\nCommencement\n1983\n106\nLocal Government Finance Authority Act 1983\n22.12.1983\n26.1.1984 (Gazette 26.1.1984 p176)\n1986\n59\nLocal Government Finance Authority Act Amendment Act 1986\n2.10.1986\n2.10.1986\n1988\n46\nLocal Government Finance Authority Act Amendment Act 1988\n5.5.1988\n23.6.1988 (Gazette 23.6.1988 p1980)\n1996\n1\nLocal Government Finance Authority (Review) Amendment Act 1996\n7.3.1996\n1.6.1996 (Gazette 2.5.1996 p2396)\n1998\n51\nLocal Government Finance Authority (Board Membership) Amendment Act 1998\n3.9.1998\n3.9.1998\n1999\n33\nFinancial Sector Reform (South Australia) Act 1999\n17.6.1999\nSch (item 34)—1.7.1999 being the date specified under s 3(16) of the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999 of the Commonwealth as the transfer date for the purposes of that Act: s 2(2)\nProvisions amended\nCertain textual alterations were made to this Act by the Commissioner of Statute Revision when preparing the reprint of the Act that incorporated all amendments in force as at 1 April 1987. A Schedule of these alterations was laid before Parliament on 31 March 1987.\nNew entries appear in bold.\nEntries that relate to provisions that have been deleted appear in italics.\nProvision\nHow varied\nCommencement\nPt 1\n\n\ns 2\ndeleted in pursuance of the Acts Republication Act 1967 as its function is now exhausted\n1.4.1987\ns 3\n\n\nLGA\ninserted by 51/1998 s 7 (Sch)\n3.9.1998\nthe Local Government Association\ndeleted by 51/1998 s 7 (Sch)\n3.9.1998\nprescribed local government body\namended by 1/1996 s 3\n1.6.1996\n\namended by 51/1998 s 7 (Sch)\n3.9.1998\nrepresentative member\namended by 51/1998 s 7 (Sch)\n3.9.1998\nPt 2\n\n\ns 4\n\n\ns 4(3)\namended by 59/1986 s 2\n2.10.1986\ns 4(4) and (5)\ninserted by 1/1996 s 4\n1.6.1996\ns 7\n\n\ns 7(1)\namended by 46/1988 s 3\n23.6.1988\n\namended by 1/1996 s 5(a)\n1.6.1996\n\namended by 51/1998 ss 2(a), 7 (Sch)\n3.9.1998\ns 7(2)\ndeleted in pursuance of the Acts Republication Act 1967 as its function is now exhausted \n1.4.1987\n\ninserted by 1/1996 s 5(b)\n1.6.1996\ns 7(3a)\ninserted by 51/1998 s 2(b)\n3.9.1998\ns 7(4)\namended by 51/1998 s 7 (Sch)\n3.9.1998\ns 8\n\n\ns 8(1)\namended by 46/1988 s 4\n23.6.1988\n\namended by 51/1998 s 7 (Sch)\n3.9.1998\ns 8(2)\ndeleted in pursuance of the Acts Republication Act 1967 as its function is now exhausted\n1.4.1987\ns 8(6)\namended by 51/1998 s 7 (Sch)\n3.9.1998\ns 8(7)\ninserted by 1/1996 s 6\n1.6.1996\ns 8(8)\ninserted by 51/1998 s 3\n3.9.1998\ns 9\nsubstituted by 51/1998 s 7 (Sch)\n3.9.1998\ns 10\n\n\ns 10(1)\nsubstituted by 51/1998 s 4\n3.9.1998\ns 10(2)\nsubstituted by 51/1998 s 7 (Sch)\n3.9.1998\ns 10(5a)\ninserted by 59/1986 s 3\n2.10.1986\n\namended by 51/1998 s 7 (Sch)\n3.9.1998\ns 10(5b)\ninserted by 59/1986 s 3\n2.10.1986\ns 12\n\n\ns 12(1)\namended by 1/1996 s 7\n1.6.1996\n\namended by 51/1998 s 7 (Sch)\n3.9.1998\ns 12(2) and (4)\namended by 51/1998 s 7 (Sch)\n3.9.1998\ns 13\n\n\ns 13(2)\nsubstituted by 1/1996 s 8\n1.6.1996\n\namended by 51/1998 s 7 (Sch)\n3.9.1998\ns 13(3)\ninserted by 51/1998 s 5\n3.9.1998\ns 14\n\n\ns 14(4)\namended by 51/1998 s 7 (Sch)\n3.9.1998\ns 15\n\n\ns 15(1)\namended by 51/1998 s 7 (Sch)\n3.9.1998\ns 17\n\n\ns 17(1)\namended by 51/1998 s 7 (Sch)\n3.9.1998\ns 17(2)\nsubstituted by 51/1998 s 7 (Sch)\n3.9.1998\ns 18\namended by 46/1988 s 5\n23.6.1988\ns 19\ndeleted by 46/1988 s 6\n23.6.1988\ns 20\namended by 51/1998 s 7 (Sch)\n3.9.1998\nPt 3\n\n\ns 21\n\n\ns 21(1)\namended by 59/1986 s 4(a)\n2.10.1986\n\namended by 1/1996 s 9\n1.6.1996\n\namended by 51/1998 s 7 (Sch)\n3.9.1998\ns 21(2)\n(b) deleted by 59/1986 s 4(b)\n2.10.1986\n\namended by 59/1986 s 4(c)—(g)\n2.10.1986\n\namended by 33/1999 Sch (item 34)\n1.7.1999\ns 21(2a)\ninserted by 59/1986 s 4(h)\n2.10.1986\ns 22\n\n\ns 22(2)\namended by 59/1986 s 5\n2.10.1986\n\namended by 1/1996 s 10\n1.6.1996\ns 24\n\n\ns 24(1)\nsubstituted by 59/1986 s 6(a)\n2.10.1986\ns 24(2)\ndeleted by 59/1986 s 6(a)\n2.10.1986\ns 24(4)\namended by 59/1986 s 6(b)\n2.10.1986\ns 24(5)\namended by 59/1986 s 6(c)\n2.10.1986\ns 26\namended by 1/1996 s 11\n1.6.1996\n\namended by 51/1998 s 7 (Sch)\n3.9.1998\ns 27\namended by 59/1986 s 7\n2.10.1986\n\ndeleted by 1/1996 s 12\n1.6.1996\nPt 4\n\n\ns 28\n\n\ns 28(1)\namended by 51/1998 s 7 (Sch)\n3.9.1998\ns 29\n\n\ns 29(2)\namended by 51/1998 s 7 (Sch)\n3.9.1998\ns 29(3)\ndeleted by 1/1996 s 13\n1.6.1996\ns 30\ndeleted by 1/1996 s 14\n1.6.1996\ns 31A\ninserted by 1/1996 s 15\n1.6.1996\ns 31A(4)\namended by 51/1998 s 7 (Sch)\n3.9.1998\ns 31A(5)\ndeleted by 51/1998 s 7 (Sch)\n3.9.1998\ns 32\n\n\ns 32(1)\nsubstituted by 59/1986 s 8\n2.10.1986\ns 32A\ninserted by 59/1986 s 9\n2.10.1986\n\namended by 51/1998 s 7 (Sch)\n3.9.1998\ns 33\nsubstituted by 1/1996 s 16\n1.6.1996\ns 34\n\n\ns 34(1)\namended by 51/1998 s 7 (Sch)\n3.9.1998\ns 34(2)\nsubstituted by 1/1996 s 17\n1.6.1996\ns 34(3)\namended by 51/1998 s 6\n3.9.1998\ns 35\nsubstituted by 1/1996 s 18\n1.6.1996\ns 37\ninserted by 46/1988 s 7\n23.6.1988\ns 37(3)\nsubstituted by 1/1996 s 19\n1.6.1996\ns 37(4)\ninserted by 1/1996 s 19\n1.6.1996\nTransitional etc provisions associated with Act or amendments\nLocal Government Finance Authority (Review) Amendment Act 1996\n20—Transitional provision—Rules\nThe amendment effected to section 37 of the principal Act by this Act does not affect the validity of the rules of the Authority in force immediately before the commencement of this section.\nHistorical versions\nReprint —1.4.1987\n\nReprint No 1—1.10.1991\n\nReprint No 2—1.6.1996\n\nReprint No 3—3.9.1998\n\n","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":true,"description":"The Act has broadened beyond a simple municipal borrowing pool. Amendments over time (see legislative history entries for 1986, 1996, 1998 and 1999) expanded the Authority's permissible activities to include more elaborate financial market operations and corporate arrangements (express powers to enter partnerships/joint ventures and form companies under s21(2)(ia)), introduced a tax‑equivalent payment regime (s31A), and provided explicit Treasurer guarantees and appropriations (ss23–24). Those additions move the Authority's scope from purely facilitating council loans toward operating as a more general local‑government financial institution, while retaining Treasurer oversight (s21(2a), s24(3)). The net effect is an institution with wider commercial capacity and corresponding State fiscal exposure, subject to conditional ministerial/treasurer approvals and statutory audit/reporting controls."},"complexity_factors":["Multiple governance strands: mixed Board composition with elected, LGA‑nominated and Minister/Treasurer appointees plus co‑option (s7)","Several Treasurer/Minister approval points that condition core powers (ss21(2a), 23, 24(3), 25)","Cross‑cutting fiscal mechanisms: Treasurer guarantee of liabilities and appropriation of funds (s24, s23)","Tax‑treatment provisions that both permit exemptions and create a tax‑equivalent payment regime (ss32, 31A)","Wide range of financial powers (borrowing, securities, underwriting, partnerships, forming companies) subject to limits (s21)","Reporting and audit obligations connecting to the Public Finance and Audit Act and Auditor‑General powers (s33–34)","Delegation, conflict‑of‑interest and criminal penalty provisions (ss12, 28)","Membership rule making every council a member (s5) and prescribed local government bodies concept (interpretation)","Rules and regulations regime that requires member approval for Authority rules (s37)","Historical amendment record expanding powers over time (legislative history)"],"plain_english_summary":"**What this law does (mechanically)\n\n- Establishes a corporate body called the Local Government Finance Authority of South Australia (the Authority) and makes every local council in the State a member (s4, s5).\n- Puts a Board of Trustees in charge of managing the Authority, sets who sits on the Board (seven members drawn from elected representatives, the Local Government Association (LGA), the Minister and the Treasurer, plus the LGA Secretary), and prescribes procedures for meetings, conflicts of interest, removal and delegations (ss6–13, s7(1)).\n- Gives the Authority a range of financial powers to raise and manage money for councils and other prescribed local government bodies: borrow money, accept deposits, lend or invest funds, deal in securities, open bank accounts, appoint agents or underwriters, give guarantees or indemnities, enter partnerships/joint ventures and form companies (s21(1)–(2)).\n- Limits some activities so that certain loans, investments, partnerships or company formations require the Treasurer's approval (s21(2a)).\n- Requires the Authority to act according to proper financial management and with a view to avoiding loss; surpluses may be retained, distributed to participating councils, or applied for other local government purposes (s22).\n- Allows the Treasurer to provide money to the Authority on terms agreed and appropriates $10,000,000 from the Consolidated Account for that purpose (s23).\n- Guarantees liabilities of the Authority by the Treasurer (so the State backs Authority liabilities) and makes most borrowings subject to Treasurer approval; the Authority must pay fees for guarantees as agreed (s24).\n- Permits councils and prescribed local government bodies to borrow from the Authority, deposit money with it, or enter other approved financial arrangements with it, despite other laws (s26).\n- Enables the Authority to charge fees for transactions and to require tax–equivalent payments to be made to a specified fund that are to be applied for local government development purposes (ss31, 31A).\n- Provides audit, reporting and oversight requirements: annual audited financial statements, audit powers for the Auditor‑General, and an annual report to the Minister, councils and the LGA (ss33–34). The Authority may also be granted exemptions from State taxes or duties by Gazette notice (s32).\n- Allows the Authority to make rules about elections, meeting procedures and other internal matters, subject to approval by general meeting (s37).\n\n**Who this affects\n\n- All municipal councils in South Australia: every council is automatically a member of the Authority (s5) and may use it to borrow, deposit or otherwise manage funds (s26).\n- Prescribed local government bodies (bodies established for councils or local government purposes that are prescribed by regulation) can also participate in Authority activities (definition of \"prescribed local government body\").\n- The State (Treasurer) — because the Treasurer provides funds, approves some transactions and guarantees the Authority's liabilities (ss23–24).\n- The Local Government Association (LGA) — it has a formal role in nominations, representation on the Board and in recommending uses of some funds (s7, s31A(4)).\n- Financial counterparties and markets — the Authority can operate in wholesale and retail financial markets (borrow, issue securities, appoint underwriters) and may form companies or joint ventures (s21).\n\n**Why it matters (practical effects, incentives and trade‑offs)\n\n- Centralises municipal finance: councils gain a collective vehicle for borrowing, investing and managing cash, which can produce scale effects (one issuer/manager instead of many small borrowers) and potential cost savings or standardisation (s21, s26).\n- State bears contingent fiscal risk: the Treasurer's guarantee (s24(1)) exposes the Consolidated Account to Authority liabilities when the Authority cannot meet them, while the Treasurer retains control over most external borrowings (s24(3)). That concentrates downside risk with the State but leaves upside (fees, surplus) with the Authority or councils depending on distributions (ss22, 31).\n- Oversight and conditionality: many higher‑risk activities (making loans other than to councils, investments, partnerships, company formation) need Treasurer approval (s21(2a)), and borrowings require Treasurer approval (s24(3)). This creates a gatekeeper role for the Treasurer and a tension between operational autonomy and fiscal control.\n- Multiple potential subsidies/offsets: the Treasurer can exempt instruments or transactions from State taxes (s32) and may require tax‑equivalent payments from the Authority to a fund that supports local government development (s31A). Those mechanisms can both reduce and transfer public cost burdens depending on how they are used.\n- Incentives for Authority behaviour: the Authority must follow proper financial management and avoid loss (s22(1)), but it can invest surpluses or distribute them to participating councils (s22(2)). The ability to charge fees (s31) and to be required to make tax‑equivalent payments (s31A) shapes pricing of services to councils and the net benefit to members.\n- Governance structure concentrates decision rights among a mixed board: elected council members, LGA nominees, and Minister/Treasurer appointees (s7). That structure blends political oversight and sector representation; co‑opted financial experts can be added (s7(3a)). Board immunity from personal liability (s11) shifts legal exposure to the Authority.\n- Administrative and compliance burdens: the Authority must maintain audited accounts, prepare annual reports and comply with Treasurer instructions under the Public Finance and Audit Act (ss33–34). Councils using the Authority will face contractual and reporting obligations tied to those arrangements.\n\n**Costs, concentrated benefits and risks (mechanisms, not judgements)\n\n- Who pays: councils pay fees for Authority services (s31). The Authority may pay fees to the Treasurer for guarantees (s24(5)). Where the Treasurer provides funds or guarantees liabilities, the State (Consolidated Account) picks up financial risk (ss23–24).\n- Concentrated benefits: councils that borrow through the Authority may get access to lower transaction costs or pooled credit capacity; those benefits are concentrated among active borrowers (s21, s26).\n- Diffuse costs / contingent liabilities: the guarantee creates a contingent liability for the State that is diffuse (borne by taxpayers generally) while benefits accrue to participating councils (s24).\n- Rent‑seeking/capture risk and substitution effects: because Treasurer approval and exemptions (ss21(2a), 24(3), 32) are discretionary or subject to administrative rules, parties may seek favourable approvals or tax treatment. The Act also permits the Authority to enter markets that private lenders compete in (issuing securities, forming companies) subject to approvals, which could substitute for private sector activity (s21).\n- Implementation and operational risk: the Authority may take on complex financial activity (securities, underwriting, joint ventures) that requires specialist expertise; the Act allows co‑option of specialists (s7(3a)) but operational risk remains and is indirectly backed by the State (s24).\n\n**Key statutory checks and transparency mechanisms\n\n- Treasurer approvals for higher‑risk transactions and for borrowings (s21(2a), s24(3)).\n- Auditor‑General audit and powers (s33). Annual audited financial statements and reports to Minister, the LGA and councils (s34).\n- Board disclosure and meeting rules, conflict‑of‑interest rules carrying criminal penalty for failure to disclose (s12).\n- Rules and regulations framework that requires the Authority's internal rules to be approved by members (s37).\n\n(References are to section numbers of the Local Government Finance Authority Act 1983.)"},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":true,"description":"The original 1983 Act established a relatively straightforward borrowing and lending facility for councils. Over time, amendments have significantly expanded the scope: (1) 1986 amendments added powers to issue securities, enter guarantees, and form partnerships/joint ventures; (2) 1996 amendments introduced tax equivalent payments, expanded the Board membership rules (including gender quotas and co-opted financial experts), and added reporting requirements for prescribed bodies; (3) 1998 amendments further refined governance. The Authority has evolved from a simple municipal finance facility into a more sophisticated financial institution with commercial-like powers, tax-equivalent obligations, and complex corporate governance structures."},"complexity_factors":["Moderate length statute (37 sections) with straightforward structure in 4 Parts","11 defined terms in the interpretation section (section 3), most with clear, specific meanings","Multiple appointment mechanisms for Board members (elected, nominated, appointed by Minister/Treasurer, ex officio) with different term conditions and removal procedures","Nested governance structure: Authority → Board of Trustees → Presiding Member/Deputy, plus General Meetings of council representatives","Conditional approvals required from Treasurer or Minister for certain financial activities (borrowing, investments, partnerships)","Cross-references to other Acts: Local Government Act 1934, Public Finance and Audit Act 1987, Public Corporations Act 1993, Financial Sector Reform legislation","Specific quorum calculations using mathematical formulas (half plus one, total councils divided by two plus one)","Gender quota provision (at least one woman and one man on Board) — unusual for 1983 legislation, added in 1996","Disclosure of interest provisions with criminal penalties ($10,000 or 2 years imprisonment)","Legislative history shows multiple amendments (1986, 1988, 1996, 1998, 1999) adding complexity through layering"],"plain_english_summary":"**What this law does:**\n\nThis Act creates a special bank-like body called the **Local Government Finance Authority of South Australia** (the \"Authority\"). It's essentially a financial cooperative owned by and run for South Australian local councils.\n\n**Who it affects:**\n- **Every council in South Australia** — they are automatically members of the Authority\n- **Other local government bodies** — organisations set up by or for councils can also use the Authority's services\n- **The State Government** — the Treasurer and Minister have oversight roles and can provide guarantees and funding\n\n**Key things the Authority can do:**\n- **Borrow money** on behalf of local government (with the Treasurer's backing)\n- **Lend money to councils** and accept deposits from them\n- **Invest funds** and provide financial advice to councils\n- **Issue securities** (financial instruments) and enter into financial arrangements\n\n**How it's run:**\n- Managed by a **Board of seven trustees** — two elected by councils, two nominated by the Local Government Association (LGA), one appointed by the Minister, one by the Treasurer, and the LGA Secretary\n- **General meetings** where every council sends a representative to vote on major decisions\n- The Board handles day-to-day management\n\n**Why it matters:**\nThis gives councils a way to pool their financial resources and borrow money more cheaply than they could individually. The State Treasurer guarantees the Authority's debts, which lowers borrowing costs. It also lets councils invest surplus funds safely with a body that understands local government needs, rather than relying entirely on commercial banks.\n\n**Special features:**\n- The Authority is **not part of the government** (not \"the Crown\") but operates as an independent corporation\n- It must pay **\"tax equivalents\"** to the State — payments that mimic what it would pay in federal taxes if it were a private company\n- It has **exemptions from State taxes** to help keep costs down for councils\n- Board members have **protection from personal liability** when acting in good faith"},"summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"Scope assessment cannot be performed as the legislative text was not accessible. The website migration on 24 March 2026 has rendered the provided hyperlink non-functional. No comparison between original and current scope is possible without the document."},"complexity_factors":["No actual legislative text was retrievable — the source URL returned a 404/Page Not Found error","Score reflects inability to assess true complexity rather than simplicity of the Act itself","The Act is known to involve financial regulatory concepts (borrowing, investment, authority governance) which would ordinarily rate higher if the text were available"],"plain_english_summary":"The Local Government Finance Authority Act 1983 set up the Local Government Finance Authority (LGFA), a specialist lender and financial-services body that pools South Australian councils’ borrowing and investment to secure better rates and safer investments than councils could access alone. It affects all SA local councils (and thus residents and ratepayers), plus council finance staff and administrators, because LGFA borrowing influences council costs, rates and local services."},"issue_detection":{"absurdities":[],"contradictions":[]}},"importantCases":[],"_links":{"self":"/api/acts/local-government-finance-authority-act-1983","history":"/api/acts/local-government-finance-authority-act-1983/history","analysis":"/api/acts/local-government-finance-authority-act-1983/analysis","conflicts":"/api/acts/local-government-finance-authority-act-1983/conflicts","importantCases":"/api/acts/local-government-finance-authority-act-1983/important-cases","documents":"/api/acts/local-government-finance-authority-act-1983/documents"}}