{"id":"local-government-regional-subsidiaries-regulations-2017","name":"Local Government (Regional Subsidiaries) Regulations 2017","slug":"local-government-regional-subsidiaries-regulations-2017","collection":"regulation","jurisdiction":"wa","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":178843,"registerId":"wa-local-government-regional-subsidiaries-regulations-2017-current","compilationNumber":null,"startDate":"2026-04-05","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Local Government (Regional Subsidiaries) Regulations 2017","content":"![Crest]()Western Australia\n\nLocal Government Act 1995\n\nLocal Government (Regional Subsidiaries) Regulations 2017\n\nWestern Australia\n\nLocal Government (Regional Subsidiaries) Regulations 2017\n\nContents\n\nPart 1 — Preliminary\n\n1. Citation 1\n\n2. Commencement 1\n\n3. Terms used 1\n\nPart 2 — General\n\n4. Community consultation about formation of regional subsidiary 3\n\n5. Application for approval for formation of regional subsidiary 5\n\n6. Community consultation about amendment to charter 5\n\n7. Application for approval for amendment to charter 7\n\n8. No capacity to commence trading undertaking or enter into land transactions 7\n\n9. Matters to be dealt with in regional subsidiary’s charter 8\n\n10. Participants have access to information held by regional subsidiary 10\n\n11. Power to borrow 10\n\n11A. Annual budget must be given to participants 10\n\nPart 3 — Prescribed modifications\n\n12. Act and regulations modified 11\n\n13. Absolute majority 11\n\n14. General modifications 11\n\n15. Tenders for providing goods or services (application of modified section 3.57(1) and modified regulations) 12\n\n16. No capacity to form or acquire control of body corporate (application of modified section 3.60) 14\n\n17. Dissolution of regional subsidiary (application of modified section 3.63) 14\n\n18. Financial management (application of modified provisions of Act and modified regulation) 14\n\n19. Financial management (application of modified provisions of *Local Government (Financial Management) Regulations 1996*) 15\n\n20. Disclosure of financial interests (application of modified Part 5 Division 6 of Act) 17\n\n21. Access to, and improper use of, information (application of modified sections 5.91, 5.92 and 5.93) 19\n\n22. Power to invest (application of modified section 6.14(1) and modified regulation) 19\n\n23. Fees and charges (application of modified Part 6 Division 5 Subdivision 2 of Act) 19\n\n24. Scrutiny of affairs of regional subsidiaries (application of modified Part 8 Divisions 1 and 4 of Act) 20\n\n24A. Monitors (application of modified Part 8B Division 5 of Act) 22\n\n24B. Powers of authorised officers (application of modified Part 8B Division 6 of Act) 23\n\n25. Certain persons protected from liability for wrongdoing (application of modified section 9.56) 23\n\nNotes\n\nCompilation table 24\n\nDefined terms\n\n  \n\nLocal Government Act 1995\n\nLocal Government (Regional Subsidiaries) Regulations 2017\n\n## Part 1 — Preliminary\n\n##### 1. Citation\n\n\t\tThese regulations are the *Local Government (Regional Subsidiaries) Regulations 2017*.\n\n##### 2. Commencement\n\nThese regulations come into operation as follows —\n\n(a) regulations 1 and 2 — on the day on which these regulations are published in the *Gazette*;\n\n(b) the rest of the regulations — on the day on which the *Local Government Legislation Amendment Act 2016* section 9 comes into operation.\n\n##### 3. Terms used\n\nIn these regulations —\n\namend, in relation to a charter, means to amend the charter in accordance with section 3.70(1)(f);\n\ncharter means the charter prepared under section 3.70 in relation to a regional subsidiary;\n\nfinancial management, of a regional subsidiary, means the financial management, planning, auditing and reporting to be undertaken by a regional subsidiary in accordance with its charter and section 3.70(1)(e);\n\ngeneral modifications has the meaning given in regulation 14;\n\nparticipants means the 2 or more local governments that form, or propose to form, a regional subsidiary;\n\nsection means a section of the Act.\n\n## Part 2 — General\n\n##### 4. Community consultation about formation of regional subsidiary\n\n(1) In this regulation —\n\nsignificant change, in relation to the proposal to form a regional subsidiary, means —\n\n(a) the inclusion of a further participant with the participants that propose to form the regional subsidiary; or\n\n(b) the withdrawal of a participant from the participants that propose to form the regional subsidiary; or\n\n(c) an amendment to the business plan prepared under subregulation (3) relating to the proposed functions of the regional subsidiary.\n\n(2) Before applying to the Minister for approval for the formation of a regional subsidiary, the participants are required to consult with the community in their districts in accordance with this regulation.\n\n(3) The participants must prepare a business plan that includes an overall assessment of the formation of the regional subsidiary and is to include details of —\n\n(a) its expected effect on the provision of facilities and services by the participants; and\n\n(b) its expected effect on other persons providing facilities and services in the participants’ districts; and\n\n(c) its expected financial effect on the participants; and\n\n(d) its expected effect on matters referred to in each participant’s current plan prepared under section 5.56; and\n\n(e) the service that is proposed to be provided, or the activity that is proposed to be carried on, by the regional subsidiary; and\n\n(f) why the regional subsidiary is proposed to be formed to provide that service or carry on that activity.\n\n(4) Each participant must publish the business plan on its official website and make copies of the plan available for inspection at its office.\n\n(5) Each participant must give local public notice of the proposal to form a regional subsidiary in accordance with a business plan, stating that —\n\n(a) submissions about the proposal may be made to the participant before a day to be specified in the notice, being a day that is not less than 6 weeks after the notice is given; and\n\n(b) the business plan has been published on its official website and copies of it are available for inspection at its office.\n\n(6) After the last day for submissions, each participant must consider any submissions made to the participant.\n\n(7) If, having considered any submissions made, the participants decide to proceed with the proposal or with a proposal that does not involve a significant change in what was proposed, the participants may apply to the Minister for approval for the formation of the regional subsidiary, subject to compliance with section 3.70(2).\n\n(8) If, having considered any submissions made, the participants decide to proceed with a proposal that involves a significant change in what was proposed, the participants must —\n\n(a) prepare a revised business plan; and\n\n(b) comply with this regulation in respect of the revised business plan and the new proposal.\n\n##### 5. Application for approval for formation of regional subsidiary\n\n(1) An application for approval for the formation of a regional subsidiary must be made in a form approved by the Minister.\n\n(2) The participants must supply the Minister with any further information about the application, including information about the charter forwarded to the Minister under section 3.70(2) with the application, that the Minister asks for.\n\n(3) In considering whether or not to approve the formation of a regional subsidiary, the Minister must have regard to the following —\n\n(a) the service that is proposed to be provided, or the activity that is proposed to be carried on, by the regional subsidiary;\n\n(b) the estimated annual expenditure and the estimated annual revenue and income of the regional subsidiary;\n\n(c) any other matters the Minister considers relevant to the application.\n\n(4) If the Minister approves the formation of a regional subsidiary, the Minister may grant the approval subject to any conditions determined by the Minister.\n\n(5) Any conditions determined by the Minister must be specified in the notice under section 3.69(2) declaring that the regional subsidiary is established.\n\n##### 6. Community consultation about amendment to charter\n\n(1) In this regulation —\n\nparticipant includes (except in the expression “further participant”) a local government proposing to become a further participant with the participants that formed a regional subsidiary;\n\nsignificant change, in relation to a regional subsidiary’s charter, means —\n\n(a) the inclusion of a further participant with the participants that formed the regional subsidiary; or\n\n(b) the withdrawal of a participant from the participants that formed the regional subsidiary; or\n\n(c) an amendment to the charter relating to the functions of the regional subsidiary.\n\n(2) Before an application may be made under regulation 7 for approval for an amendment to a charter that would involve a significant change to the charter approved by the Minister, the participants are required to consult with the community in their districts in accordance with this regulation.\n\n(3) Each participant must publish the proposal to amend the charter, and the reasons for the proposal, on the participant’s official website and make copies of the proposal and reasons available for inspection at their offices.\n\n(4) The participants must give local public notice in their districts of the proposal to amend the charter, stating that —\n\n(a) submissions about the proposal may be made to the participants before a day to be specified in the notice, being a day that is not less than 6 weeks after the notice is given; and\n\n(b) the proposal, and the reasons for the proposal, have been published on the participants’ official websites and copies of the proposal and reasons are available for inspection at their offices.\n\n(5) After the last day for submissions, each participant must consider any submissions made to the participant.\n\n(6) If, having considered any submissions made, the participants decide to proceed with the proposal or with a proposal that does not involve a significant change in what was proposed, the participants may apply under regulation 7 for approval for the amendment to the charter.\n\n(7) If, having considered any submissions made, the participants decide to proceed with a proposal that involves a significant change in what was proposed, the participants must comply with this regulation in respect of the new proposal.\n\n##### 7. Application for approval for amendment to charter\n\n(1) The participants may apply to the Minister for approval for an amendment to a regional subsidiary’s charter.\n\n(2) The application must be made in a form approved by the Minister.\n\n(3) The participants must supply the Minister with any further information about the application that the Minister asks for.\n\n(4) Regulation 5(3) and (4) apply to an application under this regulation as if a reference in those provisions to approving the formation of a regional subsidiary were a reference to approving the amendment of a regional subsidiary’s charter.\n\n(5) If the Minister approves the amendment of a regional subsidiary’s charter, the Minister must, by notice given to the participants and published in the *Gazette*, declare that the charter is amended on the date set out in the notice.\n\n(6) Any conditions determined by the Minister under regulation 5(4), as applied by subregulation (4), must be specified in the notice under subregulation (5).\n\n##### 8. No capacity to commence trading undertaking or enter into land transactions\n\n(1) In this regulation —\n\nland transaction has the meaning given in section 3.59(1);\n\ntrading undertaking has the meaning given in section 3.59(1).\n\n(2) A regional subsidiary cannot commence a trading undertaking or enter into a land transaction.\n\n(3) Subregulation (2) does not apply to —\n\n(a) the leasing or purchase of an interest in land, if the lease or purchase is necessary to further a purpose specified in the regional subsidiary’s charter; or\n\n(b) the sale of an interest in land, if the sale is necessary to wind up the regional subsidiary or to further a purpose specified in the regional subsidiary’s charter.\n\n(4) In subregulation (3), purpose does not include a purpose that authorises the regional subsidiary to enter into commercial land transactions for profit or gain.\n\n[Regulation 8 amended: Gazette 6 Oct 2017 p. 5181.]\n\n##### 9. Matters to be dealt with in regional subsidiary’s charter\n\nFor the purposes of section 3.70(1)(h), the following matters are required to be dealt with in a charter —\n\n(a) the employment, appointment or engagement of staff by the regional subsidiary;\n\n(b) the execution of documents by the regional subsidiary;\n\n(c) a means of determining the procedures for meetings of the regional subsidiary’s governing body and of any committees of the governing body;\n\n(d) procedures for the participants to request information from the regional subsidiary and, if information is requested by only one participant, for determining whether the regional subsidiary must provide the information to each of the other participants;\n\n(e) procedures for the participants to give directions to the regional subsidiary’s governing body and the consequences of a failure to comply with a direction;\n\n(f) a means of resolving disputes between participants as to matters relating to the regional subsidiary;\n\n(g) in relation to the financial management of the regional subsidiary — details of any of the listed provisions (as defined in regulation 19(1) and applied by that subregulation to a regional subsidiary subject to its charter) that do not apply to the regional subsidiary, and the reasons why they do not apply;\n\n(h) a means of determining the continuing financial contributions (if any) of the participants to the funds of the regional subsidiary;\n\n(i) the way in which any profits produced by the regional subsidiary are dealt with;\n\n(j) the circumstances (if any) in which the regional subsidiary may operate at a loss and, if it does operate at a loss, a means for preventing its insolvency;\n\n(k) the circumstances in which the regional subsidiary is to be wound up and procedures for the winding up of the regional subsidiary;\n\n(l) procedures for the withdrawal of a participant from the regional subsidiary;\n\n(m) procedures for another local government being included in the charter as a further participant;\n\n(n) procedures for the division of assets and liabilities between the participants in the event of the regional subsidiary being wound up or a participant withdrawing from the regional subsidiary;\n\n(o) the way in which money may be invested by the regional subsidiary in accordance with the Act, as modified by regulation 22;\n\n(p) procedures for the disposal of property;\n\n(q) a means of developing a code of conduct (if any) for the employees of the regional subsidiary, for the members of the regional subsidiary’s governing body or for the members of a committee of the governing body;\n\n(r) the fees and charges (if any) that may be imposed by the regional subsidiary;\n\n(s) the process for reviewing the charter.\n\n##### 10. Participants have access to information held by regional subsidiary\n\nThe participants can have access to any information held by a regional subsidiary that relates to the performance by the regional subsidiary of any functions under the Act or another written law.\n\n##### 11. Power to borrow\n\n(1) A regional subsidiary may borrow money from one or more of the participants to enable the regional subsidiary to perform its functions.\n\n(2) A regional subsidiary cannot borrow money otherwise than under subregulation (1).\n\n##### 11A. Annual budget must be given to participants\n\nA copy of the annual budget of a regional subsidiary must be given to each participant within 30 days after its adoption by the regional subsidiary.\n\n[Regulation 11A inserted: SL 2023/106 r. 35.]\n\n## Part 3 — Prescribed modifications\n\n##### 12. Act and regulations modified\n\nThis Part prescribes modifications to the Act and to other regulations made under the Act for the purposes of the application of the Act and those regulations in relation to a regional subsidiary.\n\n##### 13. Absolute majority\n\nIf —\n\n(a) a provision of the Act, or of other regulations made under the Act, is applied to a regional subsidiary by a modification of the provision by this Part; and\n\n(b) that provision has a requirement relating to an absolute majority,\n\nthe reference to an absolute majority is taken to be a reference to a majority comprising enough of the persons for the time being constituting the regional subsidiary’s governing body for their number to be more than 50% of the number of offices (whether vacant or not) on that body.\n\n##### 14. General modifications\n\nIf it is stated in this Part that a provision of the Act, or of other regulations made under the Act, applies as if amended by the general modifications, the provision applies as if amended so that —\n\n(a) any reference to a local government is a reference to a regional subsidiary; and\n\n(b) any reference to a member, in relation to a council, is a reference to a member of a regional subsidiary’s governing body; and\n\n(c) any reference to a member, in relation to a committee, is a reference to a member of a committee of a regional subsidiary’s governing body; and\n\n(d) any reference to a council is a reference to a regional subsidiary’s governing body; and\n\n(e) any reference to a committee is a reference to a committee of a regional subsidiary’s governing body; and\n\n(f) any reference to the CEO is a reference —\n\n(i) to the chief executive officer of a regional subsidiary; or\n\n(ii) if a regional subsidiary does not have a chief executive officer, to the presiding member of the regional subsidiary’s governing body or as otherwise provided for in the regional subsidiary’s charter;\n\nand\n\n(g) any reference to the mayor or president is a reference to the presiding member of the regional subsidiary’s governing body; and\n\n(h) any reference to an employee is a reference —\n\n(i) to a regional subsidiary’s employee; or\n\n(ii) in relation to a regional subsidiary that does not have employees, to a participant’s employee.\n\n##### 15. Tenders for providing goods or services (application of modified section 3.57(1) and modified regulations)\n\n(1) Section 3.57(1) applies in relation to a regional subsidiary as if amended as set out in subregulation (2).\n\n(2) Section 3.57(1) is amended so that the reference to a local government is a reference to a regional subsidiary.\n\n(3) The *Local Government (Functions and General) Regulations 1996* Part 4 Division 2 (except regulation 11(2)(a) and (ea)) and Division 3 and Part 4A apply in relation to a regional subsidiary as if amended as set out in subregulations (4), (5) and (6).\n\n(4) The provisions referred to in subregulation (3) are amended so that —\n\n(a) any reference to a local government (except in regulation 11(2)(e)) is a reference to a regional subsidiary; and\n\n(b) any reference to a council is a reference to a regional subsidiary’s governing body; and\n\n(c) any reference to the CEO is a reference —\n\n(i) to the chief executive officer of a regional subsidiary; or\n\n(ii) if a regional subsidiary does not have a chief executive officer, to the presiding member of the regional subsidiary’s governing body or as otherwise provided for in the regional subsidiary’s charter;\n\nand\n\n(d) any reference to an employee is a reference —\n\n(i) to a regional subsidiary’s employee; or\n\n(ii) in relation to a regional subsidiary that does not have employees, to a participant’s employee.\n\n(5) The *Local Government (Functions and General) Regulations 1996* regulation 24E(3)(a) is amended so that it refers to the entire district of each participant.\n\n(6) The *Local Government (Functions and General) Regulations 1996* regulation 24F(4)(b) is amended so that it requires a copy of an adopted regional price preference policy to be made available at the office of a regional subsidiary.\n\n##### 16. No capacity to form or acquire control of body corporate (application of modified section 3.60)\n\n(1) Section 3.60 applies in relation to a regional subsidiary as if amended as set out in this regulation.\n\n(2) Section 3.60 is amended so that the reference to a local government is a reference to a regional subsidiary.\n\n(3) In section 3.60 delete “except a regional local government unless it is permitted to do so by regulations”.\n\n##### 17. Dissolution of regional subsidiary (application of modified section 3.63)\n\n(1) Section 3.63 applies in relation to a regional subsidiary as if amended as set out in this regulation.\n\n(2) Section 3.63 is amended so that —\n\n(a) any reference to a regional local government is a reference to a regional subsidiary; and\n\n(b) any reference to the establishment agreement is a reference to the charter.\n\n##### 18. Financial management (application of modified provisions of Act and modified regulation)\n\n(1) Sections 5.53 and 6.2 apply in relation to the financial management of a regional subsidiary as if amended by the general modifications, the amendments set out in this regulation and any other necessary modifications.\n\n(2) Delete section 5.53(2)(a), (e), (hb) and (i).\n\n(3) Section 6.2(1) is amended so that it requires a regional subsidiary to prepare and adopt a budget for the relevant financial year in accordance with its charter.\n\n(4) Section 6.2(2) is amended so that it requires a regional subsidiary to have regard to its business plan in preparing the detailed estimate referred to in that provision.\n\n(5) Delete section 6.2(2)(b).\n\n(6) Delete section 6.2(4)(b) and (f).\n\n(7) The *Local Government (Administration) Regulations 1996* regulations 19B(2)(a), (b) and (e) and 19BD apply in relation to a regional subsidiary as if amended by the general modifications.\n\n[(8) deleted]\n\n[Regulation 18 amended: SL 2020/213 r. 43; SL 2023/106 r. 36.]\n\n##### 19. Financial management (application of modified provisions of *Local Government (Financial Management) Regulations 1996*)\n\n(1) The provisions of the *Local Government (Financial Management) Regulations 1996* listed in the Table (the listed provisions) apply to the financial management of a regional subsidiary subject to its charter and as if amended by the general modifications, the amendments set out in this regulation and any other necessary modifications.\n\nTable\n\n| r. 5A to 6 | r. 11 |\n| --- | --- |\n| r. 14 to 17A | r. 19 |\n| r. 22 | r. 25 to 32 |\n| r. 33A | r. 35 and 36 |\n| r. 36A(2) and (3) | r. 44 |\n| r. 48 | r. 51 |\n\n\n(2) The listed provisions are amended so that any reference to the annual financial report is a reference to the annual financial report of a regional subsidiary.\n\n(3) In regulation 22(1) of the listed provisions delete paragraphs (e) and (f).\n\n(4) Regulation 26(2) of the listed provisions is amended by deleting the reference to —\n\n(a) all general rates; and\n\n(b) each specified area rate; and\n\n(c) each service charge.\n\n(5) In regulation 27 of the listed provisions delete paragraphs (a), (b), (c), (g), (ga), (gb), (gc), (h), (i), (j) and (k).\n\n(6) Regulation 29(d) and (e) of the listed provisions are amended so that the references to the power to borrow under section 6.20 are references to the power to borrow under regulation 11 of these regulations.\n\n(7) In regulation 30(1) of the listed provisions delete paragraph (c).\n\n(8) Regulation 30(1)(d) of the listed provisions is amended so that it refers only to regulations 27(i)(i), 27(j) and 29(f).\n\n(9) In regulation 31(3) of the listed provisions delete paragraph (b).\n\n[(10) deleted]\n\n(11) Regulation 33A(4) of the listed provisions is amended so that a copy of the review and determination by a regional subsidiary’s governing body is required to be provided to each participant.\n\n(12) In regulation 36(1) of the listed provisions delete paragraph (f).\n\n(13) In regulation 36(3) of the listed provisions delete paragraphs (a) and (b).\n\n(14) Regulation 36(3) of the listed provisions is amended so that the Table only includes the listed provisions mentioned in that Table.\n\n(15) Regulation 36A(2) and (3) of the listed provisions is amended so that any reference to a class 3 or 4 local government is a reference to a regional subsidiary.\n\n(16) Regulation 48 of the listed provisions is amended —\n\n(a) so that the references in paragraphs (d) and (e) to the power to borrow under section 6.20 are references to the power to borrow under regulation 11 of these regulations; and\n\n(b) in paragraph (f)(v) by deleting the reference to —\n\n(i) general purpose grants; and\n\n(ii) rates; and\n\n(iii) service charges.\n\n(17) Regulation 51(1) of the listed provisions is amended so that the reference to the annual financial report being audited in accordance with the Act is a reference to the annual financial report of a regional subsidiary being audited in accordance with the regional subsidiary’s charter.\n\n[(18) deleted]\n\n[Regulation 19 amended: SL 2023/106 r. 37.]\n\n##### 20. Disclosure of financial interests (application of modified Part 5 Division 6 of Act)\n\n(1) Part 5 Division 6 of the Act applies in relation to a regional subsidiary as if amended by the general modifications, the amendments set out in this regulation and any other necessary modifications.\n\n(2) Part 5 Division 6 of the Act is amended so that any reference to the election of a relevant person is a reference to the appointment of a relevant person.\n\n(3) Delete section 5.60B(1)(a) and (b).\n\n(4) Delete section 5.63(1)(b) and (2)(a) and (b).\n\n(5) Delete section 5.65(3).\n\n(6) Section 5.68(3) is amended so that the reference to the Minister is a reference to a regional subsidiary’s governing body or participants, as provided for in the regional subsidiary’s charter.\n\n(7) Section 5.69 is amended so that any reference to the Minister is a reference to a regional subsidiary’s governing body or participants, as provided for in the regional subsidiary’s charter.\n\n(8) After section 5.69(4) delete the Penalty.\n\n(9) Section 5.69A is amended so that any reference to the Minister is a reference to a regional subsidiary’s participants.\n\n(10) After section 5.69A(4) delete the Penalty.\n\n(11) Section 5.71 is amended by deleting the reference to Division 4.\n\n(12) Section 5.74(1) is amended —\n\n(a) in the definition of ***designated employee*** paragraph (b) by deleting the reference to Division 4; and\n\n(b) in the definition of ***start day*** paragraph (a) so that that provision refers to the day on which a person became a member of a regional subsidiary’s governing body.\n\n(13) Section 5.79(1)(a) is amended so that that provision refers to the address of each parcel of real property located in the district of a participant or in an adjoining district.\n\n(14) Section 5.86(1)(a) and (2)(a) are amended so that those provisions refer to real property located in the district of a participant or in an adjoining district.\n\n##### 21. Access to, and improper use of, information (application of modified sections 5.91, 5.92 and 5.93)\n\nSections 5.91, 5.92 and 5.93 apply in relation to a regional subsidiary as if amended by the general modifications.\n\n##### 22. Power to invest (application of modified section 6.14(1) and modified regulation)\n\n(1) Section 6.14(1) applies in relation to a regional subsidiary as if amended as set out in subregulation (2).\n\n(2) Section 6.14(1) is amended so that it confers power on a regional subsidiary to invest, in accordance with its charter, money that is not, for the time being, required by the regional subsidiary for any other purpose as trust funds may be invested under the *Trustees Act 1962* Part III.\n\n(3) The *Local Government (Financial Management) Regulations 1996* regulation 19C applies in relation to a regional subsidiary as if amended as set out in subregulation (4).\n\n(4) The *Local Government (Financial Management) Regulations 1996* regulation 19C is amended so that the reference to a local government is a reference to a regional subsidiary.\n\n##### 23. Fees and charges (application of modified Part 6 Division 5 Subdivision 2 of Act)\n\n(1) If the imposition of fees and charges is authorised by a regional subsidiary’s charter, Part 6 Division 5 Subdivision 2 of the Act applies in relation to the regional subsidiary as if amended as set out in this regulation.\n\n(2) Part 6 Division 5 Subdivision 2 of the Act is amended so that —\n\n(a) any reference to a local government is a reference to a regional subsidiary; and\n\n(b) any reference to the annual budget is a reference to the annual budget of a regional subsidiary.\n\n(3) In section 6.16(2)(c) delete “subject to section 5.94,”.\n\n(4) Delete section 6.17(3).\n\n##### 24. Scrutiny of affairs of regional subsidiaries (application of modified Part 8 Divisions 1 and 4 of Act)\n\n(1) Part 8 Divisions 1 and 4 of the Act apply in relation to a regional subsidiary as if amended by the general modifications, the amendments set out in this regulation and any other necessary modifications.\n\n(2) Part 8 Divisions 1 and 4 of the Act are amended so that any reference to local government property is a reference to anything, whether land or not, that belongs to, or is vested in, or under the care, control or management of, a regional subsidiary.\n\n(3) Part 8 Division 1 of the Act is amended so that sections 8.4(3) and (4), 8.5(1)(b) and (c), 8.6(1)(b) and (2), 8.7(3), 8.8 to 8.11 and 8.13(2) are deleted.\n\n(4) Section 8.2(5) is amended so that if the Inspector advises a regional subsidiary under that provision, the Inspector must also advise each of the participants.\n\n(5) Without limiting section 8.4(2)(b), that provision is amended so that the Inspector may recommend under that provision that a regional subsidiary be wound up.\n\n(6) Section 8.5(1) is amended so that if the Inspector gives a copy of the Inspector’s report to a regional subsidiary under that provision, the Inspector must also give a copy of the Inspector’s report to each of the participants.\n\n(7) Section 8.6(1) is amended so that —\n\n(a) if the Inspector’s report recommends that the regional subsidiary be wound up, the regional subsidiary’s written advice must include its comments on that recommendation; and\n\n(b) in any case, the regional subsidiary must give a copy of its written advice to each of the participants.\n\n(8) Without limiting section 8.7(1), that provision is amended so that the Minister may, by order, direct the regional subsidiary be wound up if —\n\n(a) there is a recommendation in the Inspector’s report that the regional subsidiary be wound up; or\n\n(b) an earlier order by the Minister under that provision is not complied with according to its terms.\n\n(8A) Section 8.13(1) is amended so that, if paragraph (a) or (b) of that provision applies —\n\n(a) the Minister may order the regional subsidiary or the participants to pay to the State all or part of the costs of the inquiry; and\n\n(b) the regional subsidiary or the participants, as the case requires, must comply with that order.\n\n(9) Section 8.41(3) and (4) are amended so that, if written notice is given to a regional subsidiary under either provision (as applied by subregulation (1)), a copy of the notice must also be given to each of the participants.\n\n(10) Section 8.43(1) is amended so that, if an order has been made under section 8.42(1) against a council member who is personally liable to pay an amount misapplied to a local government, any disqualification from being a council member under section 8.43(1) also applies to being a member of a regional subsidiary’s governing body.\n\n(11) Section 8.43(1) is further amended so that, if an order has been made under section 8.42(1) (as applied by subregulation (1)) against a member of a regional subsidiary’s governing body —\n\n(a) who is personally liable to pay an amount misapplied to the regional subsidiary; and\n\n(b) who is also a council member,\n\nany disqualification from being a member of the regional subsidiary’s governing body under section 8.43(1) (as applied by subregulation (1)) also applies to being a council member.\n\n[Regulation 24 amended: SL 2025/208 r. 50.]\n\n##### 24A. Monitors (application of modified Part 8B Division 5 of Act)\n\n(1) Part 8B Division 5 of the Act, and the *Local Government (Local Government Inspector) Regulations 2025* Part 3, apply in relation to a regional subsidiary as if amended by the general modifications, the amendments set out in this regulation and any other necessary modifications.\n\n(2) Part 8B Division 5 of the Act is amended so that section 8B.37(1)(a) is deleted.\n\n(3) Section 8B.37(1) is amended so that if the Inspector gives a written notice to a regional subsidiary under that provision, the Inspector must give a copy of the notice to each of the participants.\n\n(4) Section 8B.38(1) is amended so that a person who makes a request to the Inspector under that provision must give a copy of the request to each of the participants.\n\n[Regulation 24A inserted: SL 2025/208 r. 51.]\n\n##### 24B. Powers of authorised officers (application of modified Part 8B Division 6 of Act)\n\nPart 8B Division 6 of the Act applies in relation to a regional subsidiary as if amended by the general modifications and any other necessary modifications.\n\n[Regulation 24B inserted: SL 2025/208 r. 51.]\n\n##### 25. Certain persons protected from liability for wrongdoing (application of modified section 9.56)\n\n(1) In this regulation —\n\nprescribed, in relation to a regional subsidiary, means prescribed in the regional subsidiary’s charter.\n\n(2) Section 9.56 applies in relation to a regional subsidiary as if amended as set out in this regulation.\n\n(3) Section 9.56(1) is amended so that a protected person for the purposes of section 9.56 is a person who is —\n\n(a) a member of the governing body, or of a committee of the governing body, of a regional subsidiary; or\n\n(b) an employee of a regional subsidiary; or\n\n(c) a person appointed or engaged by a regional subsidiary to perform functions of a prescribed office or functions of a prescribed class.\n\n(4) Section 9.56(4) is amended so that the reference in that subsection to the local government is a reference to the regional subsidiary.\n\n(5) Section 9.56(5)(b) is amended so that the reference in that paragraph to the doing of anything by a protected person in a capacity described in section 9.56(1)(a), (b) or (c) is a reference to the doing of anything by a protected person in a capacity described in subregulation (3)(a), (b) or (c).\n\n![]()\n\nNotes\n\nThis is a compilation of the *Local Government (Regional Subsidiaries) Regulations 2017* and includes amendments made by other written laws. For provisions that have come into operation see the compilation table.\n\nCompilation table\n\n| **Citation** | **Published** | **Commencement** |\n| --- | --- | --- |\n| *Local Government (Regional Subsidiaries) Regulations 2017* | 20 Jan 2017 p. 689-713 | r. 1 and 2: 20 Jan 2017 (see r. 2(a));   Regulations other than r. 1 and 2: 21 Jan 2017 (see r. 2(b) and *Gazette* 20 Jan 2017 p. 648) |\n| *Local Government (Regional Subsidiaries) Amendment Regulations 2017* | 6 Oct 2017 p. 5181 | r. 1 and 2: 6 Oct 2017 (see r. 2(a));   Regulations other than r. 1 and 2: 7 Oct 2017 (see r. 2(b)) |\n| *Local Government Regulations Amendment Regulations (No. 2) 2020* Pt. 9 | SL 2020/213 6 Nov 2020 | 7 Nov 2020 (see r. 2(b) and SL 2020/212 cl. 2) |\n| *Local Government Regulations Amendment Regulations 2023* Pt. 4 | SL 2023/106 30 Jun 2023 | 1 Jul 2023 (see r. 2(c)) |\n| *Local Government Regulations Amendment (Local Government Amendment Act 2024) Regulations 2025* Pt. 7 | SL 2025/208 17 Dec 2025 | 1 Jan 2026 (see r. 2(c)) |\n\n\nDefined terms\n\n*[This is a list of terms defined and the provisions where they are defined. The list is not part of the law.]*\n\n**Defined term Provision(s)**\n\namend 3\n\ncharter 3\n\nfinancial management 3\n\ngeneral modifications 3\n\nland transaction 8(1)\n\nlisted provisions 19(1)\n\nparticipant 6(1)\n\nparticipants 3\n\nprescribed 25(1)\n\npurpose 8(4)\n\nsection 3\n\nsignificant change 4(1), 6(1)\n\ntrading undertaking 8(1)\n\n© State of Western Australia 2026.\n\nThis work is licensed under a Creative Commons Attribution 4.0 International Licence (CC BY 4.0). To view relevant information and for a link to a copy of the licence, visit www.legislation.wa.gov.au.\n\nAttribute work as: © State of Western Australia 2026.\n\nBy Authority: ROGER JACOBS, Acting Government Printer\n","sortOrder":0}],"analysis":{"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"},"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":true,"description":"These regulations carve out a distinct governance and legal regime for regional subsidiaries by modifying how many provisions of the Local Government Act and related regulations apply to them (Part 3; regs 12–25). They narrow certain powers (eg. trading and land transactions (reg 8), limits on forming/acquiring bodies corporate (reg 16)), reassign oversight to participants and the Minister (regs 5, 7, 10, 24), and allow charter‑level variation of statutory obligations (reg 9(g), reg 25), thereby changing the practical scope of the Act for these entities."},"complexity_factors":["Extensive cross-references and tailored modifications to the Local Government Act and multiple regulations (Part 3 generally; regs 12–25).","Ministerial discretion to approve formations and attach conditions (reg 5(4)–(5), reg 7(5)–(6)).","Detailed mandatory community consultation and timing requirements for formation and charter changes (regs 4 and 6: business plan, 6‑week submission period).","Charter‑level customization: many required and negotiable charter matters that shift financial and governance rules into local agreements (reg 9).","Financial rule overrides and carve‑outs (borrowing limited to participants (reg 11); modified financial management and auditing provisions (regs 18–19)).","Operational limits with specific exceptions (ban on trading undertakings and land transactions with narrow permitted purposes (reg 8)).","Changed accountability and scrutiny pathways: participants must receive information and budgets (regs 10, 11A) and Inspector/Minister powers adapted for subsidiaries (regs 24, 24A).","Potential for varied implementation because charters can exempt or modify statutory provisions (see reg 9(g) and reg 25(1) 'prescribed' in charter).","Recent and staged amendments over multiple years reflected in commencement/compilation notes, increasing interpretive complexity (Compilation table and amended regs)."],"plain_english_summary":"These regulations set how two or more Western Australian local governments create and run a regional subsidiary. They require public consultation and Ministerial approval for formation and charter changes, prescribe mandatory charter content and reporting, limit commercial land and trading activity, and restrict borrowing so subsidiaries may only borrow from their participant councils. Participants provide funding, oversight and access to information; the Minister can attach conditions and direct wind‑up. Compliance imposes consultation, budgeting and charter obligations on participants and the subsidiary (regs 4–11A, 8, 9, 5)."},"summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"Scope cannot be assessed — the legislative text was not retrievable. The page returned a system error indicating the URL is no longer valid following a website upgrade. No comparison between original intent and final form is possible."},"complexity_factors":["No actual legislative text was provided — only a website error message was returned","Cannot assess true complexity of the underlying regulations without the text","Score of 2 reflects the minimal analysable content, not the likely complexity of the actual regulations","Local government subsidiary regulations are typically moderately complex in practice, covering governance, finance, and accountability frameworks"],"plain_english_summary":"The Local Government (Regional Subsidiaries) Regulations 2017 (WA) are subordinate rules under the Local Government Act 1995 governing how two or more WA councils form and run joint regional bodies to deliver shared services. They matter to participating councils, subsidiary boards and staff, and the ratepayers and communities served, because they set governance, financial reporting, accountability and lifecycle arrangements — but the regulation text itself was not retrievable for detailed analysis."},"issue_detection":{"absurdities":[],"contradictions":[]},"kimi_summary":{"content_quality":"ok","complexity_score":7,"scope_assessment":{"changed":true,"description":"The regulations have grown significantly beyond simple formation rules. Originally likely focused on establishment and basic governance, the instrument now extensively modifies financial management regulations (Part 3, regs 18-19), disclosure of interests (reg 20), tender processes (reg 15), monitoring and inspection powers (regs 24, 24A, 24B), and liability protections (reg 25). The 2023 and 2025 amendments added budget transparency requirements (reg 11A) and expanded monitoring powers (regs 24A, 24B), indicating the scope has broadened from 'how to create these bodies' to 'comprehensive regulatory framework for their ongoing operation, scrutiny, and dissolution'."},"complexity_factors":["Extensive cross-referencing: The regulations modify multiple other pieces of legislation (the Local Government Act 1995, Local Government (Functions and General) Regulations 1996, Local Government (Financial Management) Regulations 1996, Local Government (Local Government Inspector) Regulations 2025, and Trustees Act 1962) requiring readers to flip between documents to understand the full effect","Nested modification structure: Part 3 contains 14 separate regulations (regs 13-25) each applying 'general modifications' plus specific amendments to existing provisions, creating a layered 'as if amended' structure","Defined terms with contextual variations: Terms like 'participant' have different meanings in different contexts (regulation 6(1) expands the definition for charter amendments to include prospective members)","Conditional application: Many provisions only apply if specific conditions are met (e.g., regulation 23 only applies if the charter authorises fees and charges; regulation 11 restricts borrowing to participant councils only)","Deletion amendments: Numerous provisions are modified by deleting specific paragraphs (e.g., regulation 18 deletes sections 5.53(2)(a), (e), (hb) and (i)), requiring knowledge of what was there originally","Substitution logic: Regulation 14 establishes 'general modifications' that swap terms (local government → regional subsidiary, council → governing body, CEO → chief executive officer or presiding member) which must be mentally applied across all subsequent modifications","Multiple amendment history: The compilation shows amendments from 2017, 2020, 2023, and 2025, with some regulations marked as 'deleted' and others inserted, indicating evolving complexity"],"plain_english_summary":"**What this legislation does:**\n\nThese regulations set up the rules for **regional subsidiaries** — special bodies formed when two or more local governments (councils) in Western Australia join together to share services or run joint projects.\n\n**Key things the rules cover:**\n\n*   **Formation:** Before creating a regional subsidiary, councils must consult their communities for at least 6 weeks, publish a business plan, and consider public feedback. If the proposal changes significantly (like adding a new council partner or changing what the body will do), they must start the consultation again.\n*   **The Charter:** Every regional subsidiary must have a \"charter\" (a founding document) that spells out how it operates — including who employs staff, how meetings run, how disputes between partner councils are resolved, how money is managed, and how the body can be wound up if things go wrong.\n*   **What they can't do:** Regional subsidiaries generally cannot run commercial trading businesses or buy/sell land for profit. They can only lease or buy land if it's necessary for their specific purpose.\n*   **Money matters:** They can only borrow money from their member councils (not banks or other lenders). They must share their annual budget with all member councils within 30 days. Their investment powers are limited to what a trustee could do under the *Trustees Act 1962*.\n*   **Applying other laws:** The regulations \"modify\" (adapt) many sections of the *Local Government Act 1995* and other regulations so they fit regional subsidiaries. For example, rules about tenders, financial management, disclosure of conflicts of interest, and investigations by the Local Government Inspector are all tweaked to apply to these joint bodies instead of single councils.\n*   **Transparency and oversight:** Member councils have a right to access information held by the subsidiary. The Local Government Inspector can investigate regional subsidiaries and recommend they be wound up if things go badly wrong.\n\n**Who it affects:**\n\n*   Local governments (councils) wanting to collaborate\n*   The communities in those council areas (who get consulted)\n*   The Minister for Local Government (who approves formations and amendments)\n*   Staff and board members of regional subsidiaries\n\n**Why it matters:**\n\nThese rules allow councils to pool resources and deliver services more efficiently (like waste management, tourism promotion, or shared IT systems) while ensuring proper accountability, financial controls, and community input. Without these regulations, there would be no clear legal framework for how these collaborative bodies should operate or be supervised."}},"importantCases":[],"_links":{"self":"/api/acts/local-government-regional-subsidiaries-regulations-2017","history":"/api/acts/local-government-regional-subsidiaries-regulations-2017/history","analysis":"/api/acts/local-government-regional-subsidiaries-regulations-2017/analysis","conflicts":"/api/acts/local-government-regional-subsidiaries-regulations-2017/conflicts","importantCases":"/api/acts/local-government-regional-subsidiaries-regulations-2017/important-cases","documents":"/api/acts/local-government-regional-subsidiaries-regulations-2017/documents"}}