{"id":"tas:sr-2014-036","name":"Local Government (Management Indicators) Order 2014","slug":"local-government-management-indicators-order-2014","collection":"regulation","jurisdiction":"tas","status":"in_force","isInForce":true,"actNumber":"36 of 2014","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":187512,"registerId":"tas-tas:sr-2014-036-current","compilationNumber":null,"startDate":"2026-04-05","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"### 1 Short title\n\n> This order may be cited as the [Local Government (Management Indicators) Order 2014](/view/html/inforce/2026-04-12/sr-2014-036) .","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"### 2 Commencement\n\n> This order takes effect on the day on which its making is notified in the *Gazette*.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Interpretation","content":"### 3 Interpretation\n\n> > (1)  In this order –\n> > \n> > > ***Act*** means the [Local Government Act 1993](/view/html/inforce/2026-04-12/act-1993-095) ;\n> > \n> > > ***asset consumption ratio***, in relation to an asset class required to be included in the long-term strategic asset management plan of a council, means an amount that is the depreciated replacement cost of an asset divided by the current replacement cost of the asset;\n> > \n> > > ***asset renewal funding ratio*** means an amount that is the current value of projected capital funding outlays for an asset identified in the long-term financial plan of a council divided by the value of projected capital expenditure funding for an asset identified in the long-term strategic asset management plan of a council;\n> > \n> > > ***asset sustainability ratio*** means an amount that is the amount of capital expenditure by a council in a financial year on the replacement and renewal of existing council plant, equipment and infrastructure assets divided by the annual depreciation expense of the plant, equipment and assets for the financial year;\n> > \n> > > ***net financial liabilities*** means an amount that is the amount of the liquid assets of a council for a financial year less the total liabilities of the council for the financial year;\n> > \n> > > ***net financial liabilities ratio*** means an amount that is the amount of net financial liabilities of a council for a financial year divided by an amount that is the recurrent income (not including income received specifically for new or upgraded assets, physical resources received free of charge or other income of a capital nature) of a council for the financial year;\n> > \n> > > ***underlying surplus or deficit*** means an amount that is the recurrent income (not including income received specifically for new or upgraded assets, physical resources received free of charge or other income of a capital nature) of a council for a financial year less the recurrent expenses of the council for the financial year;\n> > \n> > > ***underlying surplus ratio*** means an amount that is the underlying surplus or deficit of a council for a financial year divided by the recurrent income (not including income received specifically for new or upgraded assets, physical resources received free of charge or other income of a capital nature) of a council for the financial year.\n> \n> > (2)  The [Acts Interpretation Act 1931](/view/html/inforce/2026-04-12/act-1931-059) applies to the interpretation of this order as if it were by-laws.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Financial management indicators","content":"### 4 Financial management indicators\n\n> For the purposes of [section 84(2A)](/view/html/inforce/2026-04-12/act-1993-095#GS84@Gs2A@EN) of the Act, the following indicators are specified as the financial management indicators to be included in the financial statements of councils:\n> \n> > > (a) net financial liabilities;\n> > \n> > > (b) net financial liabilities ratio;\n> > \n> > > (c) underlying surplus or deficit;\n> > \n> > > (d) underlying surplus ratio.","sortOrder":3},{"sectionNumber":"5","sectionType":"section","heading":"Asset management indicators","content":"### 5 Asset management indicators\n\n> For the purposes of [section 84(2A)](/view/html/inforce/2026-04-12/act-1993-095#GS84@Gs2A@EN) of the Act, the following indicators are specified as the asset management indicators to be included in the financial statements of councils:\n> \n> > > (a) asset consumption ratio;\n> > \n> > > (b) asset renewal funding ratio;\n> > \n> > > (c) asset sustainability ratio.\n\nDisplayed and numbered in accordance with the *[Rules Publication Act 1953](/view/html/inforce/current/act-1953-050)*.\n\nNotified in the *Gazette* on 19 February 2014\n\nThis order is administered in the Department of Premier and Cabinet.","sortOrder":4}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The Order does not expand or remove the reporting obligation in the Act; it specifies which indicators councils must include and defines how they are calculated (see sections 3, 4 and 5). Mechanically, it narrows council choice by prescribing indicators to report under s84(2A) of the Local Government Act 1993, but it does not alter the statutory requirement's fundamental scope."},"complexity_factors":["Narrow, prescriptive scope: lists the exact indicators to be reported (sections 4–5).","Technical financial definitions require accounting calculations and asset valuation methods (section 3 defines ratios and terms).","Legal cross-reference to the Local Government Act 1993, section 84(2A), for effect and application.","Commencement depends on Gazette notification, creating an administrative timing requirement (section 2).","Low policy discretion in the instrument itself — it mandates indicators rather than setting guidance or thresholds."],"plain_english_summary":"Specifies which financial and asset-management indicators councils must include in their financial statements under section 84(2A) of the Local Government Act 1993. It defines the technical terms used to calculate those indicators (for example net financial liabilities, underlying surplus, asset consumption, asset renewal funding and asset sustainability). Councils bear the compliance and reporting cost; the instrument fixes what they must measure and report (see sections 3, 4 and 5), reducing discretion about which indicators to publish."},"summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The order appears to have remained consistent with its original intent since commencement in February 2014. The file was last modified in December 2024, suggesting minor administrative updates rather than substantive changes in scope. No evidence of scope creep or significant expansion beyond local government performance reporting."},"complexity_factors":["Narrow and specialised subject matter (local government performance measurement) limits broad applicability","Operates as a subordinate instrument (statutory order) under the Local Government Act, requiring knowledge of the parent legislation to fully understand its effect","Technical nature of 'management indicators' may involve financial and asset management concepts unfamiliar to laypeople","Limited publicly available detail in the provided text about the specific indicators prescribed, making full assessment difficult","Low complexity overall — it is a standardised reporting framework with no complex legal rights or obligations for individuals"],"plain_english_summary":"This Tasmanian government order mandates a standard set of management indicators that local councils must use to measure and report performance. It applies to all Tasmanian councils and informs state oversight bodies and the public.\n\nBy creating a consistent scorecard (in force since 19 February 2014), the order boosts accountability, enables comparison between councils, and helps identify poorly performing councils for scrutiny or intervention."},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose of specifying management indicators for council financial statements. It has not expanded beyond this narrow technical function."},"complexity_factors":["Only 7 defined terms in the interpretation section, all with mathematical formulas","Straightforward structure: definitions followed by two simple lists of indicators","No nested exceptions, conditional clauses, or cross-references beyond the parent Act","Mathematical definitions are precise but not convoluted — each is a simple ratio or subtraction","Total length is extremely short (5 operative sections)","Single purpose instrument with no discretionary powers or administrative procedures"],"plain_english_summary":"This legislation sets out specific financial and asset management indicators that Tasmanian local councils must include in their annual financial statements.\n\n**What it does:**\nThe Order creates a standardised set of metrics (called \"indicators\") that councils must report on to show how well they are managing money and infrastructure. Think of it like a health check-up report for council finances and assets.\n\n**The four financial indicators are:**\n- **Net financial liabilities** — what the council owes minus what it can quickly turn into cash\n- **Net financial liabilities ratio** — debts compared to regular income (shows if the council is overextended)\n- **Underlying surplus or deficit** — whether regular income covers regular expenses (excluding one-off capital grants)\n- **Underlying surplus ratio** — the surplus or deficit as a percentage of regular income\n\n**The three asset management indicators are:**\n- **Asset consumption ratio** — how worn out council assets are (comparing current value to replacement cost)\n- **Asset renewal funding ratio** — whether planned spending matches what's needed to maintain assets\n- **Asset sustainability ratio** — whether the council is spending enough to replace ageing infrastructure compared to how fast it's wearing out\n\n**Who it affects:**\nAll Tasmanian local councils (city and municipal councils) and the people who read their financial statements — including ratepayers, auditors, and the state government.\n\n**Why it matters:**\nThese indicators help prevent councils from hiding financial problems or letting roads, buildings, and equipment crumble without anyone noticing. It forces transparency about whether councils are living within their means and properly maintaining the community assets that residents rely on."},"issue_detection":{"absurdities":[],"contradictions":[]}},"importantCases":[],"_links":{"self":"/api/acts/local-government-management-indicators-order-2014","history":"/api/acts/local-government-management-indicators-order-2014/history","analysis":"/api/acts/local-government-management-indicators-order-2014/analysis","conflicts":"/api/acts/local-government-management-indicators-order-2014/conflicts","importantCases":"/api/acts/local-government-management-indicators-order-2014/important-cases","documents":"/api/acts/local-government-management-indicators-order-2014/documents"}}