{"id":"municipal-association-act-1907","name":"Municipal Association Act 1907","slug":"municipal-association-act-1907","collection":"act","jurisdiction":"vic","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":175105,"registerId":"vic-municipal-association-act-1907-current","compilationNumber":null,"startDate":"2026-04-05","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Municipal Association Act 1907","content":"Version No. 044\n\n**Municipal Association Act 1907**\n\n**No. 2080 of 1907**\n\nVersion incorporating amendments as at  \n6 April 2020\n\n**table of provisions**\n\n*Section Page*\n\n1 Short title 1\n\n2 Association to be a body corporate etc. 2\n\n3 Rules 3\n\n4 Power to establish Fidelity Guarantee Fund 4\n\n5 Contributions of municipalities etc. 4\n\n6 Alteration of rates of contributions 4\n\n7 Liability of municipalities etc. 5\n\n8 Division of funds if discontinued 5\n\n9 Payment of conditions etc. 5\n\n9A Distribution of surplus 5\n\n10 Effect of guarantee 6\n\n10B Power to Association to issue accident insurance policies to members of certain authorities 6\n\n10C Association may arrange insurance 7\n\n10CA Members' insurance 8\n\n10CB Establishment of liability insurance scheme 8\n\n10CC Terms and conditions of the insurance scheme 8\n\n10CD Accounts and report 9\n\n10D Association may publish journal 10\n\n11 Accounts 10\n\n12 Association does not require registration as a general insurer under Duties Act 2000 11\n\n*Local Government Investment Service Fund* 11\n\n13 Definitions 11\n\n14 Local Government Investment Service Fund 12\n\n15 Payments into Fund 12\n\n16 Application of Fund 12\n\n17 Authorized depositors 13\n\n18 Authorized investments 14\n\n19 Borrowing power, etc. 15\n\n20 Accounts 15\n\nEndnotes 17\n\n1 General information 17\n\n2 Table of Amendments 19\n\n3 Amendments Not in Operation 22\n\n4 Explanatory details 23\n\n**Version No.** **044**\n\n**Municipal Association Act 1907**\n\n**No. 2080 of 1907**\n\nVersion incorporating amendments as at  \n6 April 2020\n\nAn Act for the incorporation of an Association called the Municipal Association of Victoria.\n\n**Preamble**\n\nWHEREAS an Association called the Municipal Association of Victoria was established in the year One Thousand eight hundred and seventy-nine for the purpose of promoting the efficient carrying out of municipal government throughout the State of Victoria and of watching over and protecting the interests rights and privileges of municipal corporations:\n\nAND WHEREAS it is desirable that such Association should be empowered to establish and conduct a Municipal Officers Fidelity Guarantee Fund:\n\nAND WHEREAS it is desirable for the convenient and effectual carrying out of such purposes that the said Association should be incorporated:\n\n**BE IT THEREFORE ENACTED by the King's Most Excellent Majesty by and with the advice and consent of the Legislative Council and the Legislative Assembly of Victoria in this present Parliament assembled and by the authority of the same as follows (that is to say):**\n\n\t1 Short title\n\nThis Act may be cited as the **Municipal Association Act 1907**[[1]](#endnote-1).\n\nS. 2  \namended by No. 6742 s. 2, substituted by No. 8090 s. 2.\n\n\t2 Association to be a body corporate etc.\n\n(1) The Municipal Association of Victoria (hereinafter called the Association) shall be a body corporate and by that name shall have perpetual succession and a common seal and shall be capable in law of suing and being sued.\n\nS. 2(2) amended by No. 12/1989  \ns. 4(1)(Sch. 2 item 82.1).\n\n(2) Each council in Victoria from time to time may appoint a councillor to be the representative of such council and the representatives so appointed shall constitute the Association.\n\n(3) The Association shall have power—\n\n(a) to compound or prove in any court of competent jurisdiction all debts or sums of money due to the Association;\n\n(b) to purchase take hold sell lease take on lease exchange or dispose of land or any real or personal property;\n\n(c) to erect buildings on any land acquired by the Association, to alter buildings thereon, or to demolish buildings thereon and erect new buildings in their place whether such buildings or any part or parts thereof are intended for use or occupation by the Association or for leasing;\n\n(d) to lease any buildings the property of the Association or any part or parts thereof on such terms and conditions as the Association thinks fit;\n\n(e) to purchase rent hire or otherwise make provision for the use of furniture or fittings and business equipment or services;\n\nS. 2(3)(ea) inserted by No. 43/1993  \ns. 23.\n\n(ea) to establish and manage a mutual liability insurance scheme for the purpose of providing public liability and professional indemnity insurance;\n\nS. 2(3)(f) amended by No. 9866 s. 2(a).\n\n(f) subject to the making of sufficient provision for meeting liabilities and expenses to use any moneys under its control other than any money required to be paid into the Local Government Investment Service Fund pursuant to section 15 in purchasing or financing the purchasing of property and may borrow moneys, whether with or without security, for the purchase of any such property; and\n\nS. 2(3)(g) inserted by No. 9866 s. 2(b).\n\n(g) to do all things necessary or convenient to be done for or in connexion with the operation of the Local Government Investment Service Fund.\n\n\t3 Rules\n\n(1) The rules of the Association in force at the commencement of this Act except in so far as the same are inconsistent with any of the provisions of this or any other Act shall be the rules of the Association until revoked or altered by rules made pursuant to this Act.\n\n(2) It shall be competent for the Association with the approval of the Governor in Council to make rules (a) for the management of the association; (b) for the regulation of its proceedings; (c) for fixing the amount of the subscription to be paid annually to the Association by each municipality; (d) for the regulation and management of and for fixing the rate of contributions to the Municipal Officers Fidelity Guarantee Fund and terms and conditions upon which the benefit of such fund shall be available; and (e) generally for all matters whatsoever affecting the management of the Association not inconsistent with the laws of Victoria.\n\nS. 4  \namended by No. 7609 s. 2.\n\n\t4 Power to establish Fidelity Guarantee Fund\n\nIt shall be lawful for the Association to establish a Municipal Officers Fidelity Guarantee Fund.\n\nS. 5  \namended by Nos 4182 s. 2(a), 6742 s. 3(1), 7609 s. 3(a)(b).\n\n\t5 Contributions of municipalities etc.\n\nS. 5(1) amended by Nos 8090 s. 3, 8967 s. 10(a), 9895 s. 2(1) (Sch. 1  \nitem 1(a)(i)(ii)), 12/1989  \ns. 4(1)(Sch. 2 item 82.2), 81/1989  \ns. 3(Sch.  \nitem 36.1).\n\n(1) Any council any Authority under the **Water Act 1989** or any corresponding previous enactments or other body constituted under any Act for any public or local governing purpose or any Weights and Measurers Union may contribute to the said fund such sum as shall be fixed by the Association as a premium or consideration for the guarantee of such council Board authority or union against all or any loss which may be occasioned by the dishonesty of any person in its employment and on the acceptance of such sum the Association upon such terms and conditions as may be determined shall enter into an agreement to pay out of the said fund all or any loss sustained by such council Board authority or union by reason or in consequence of the dishonesty of such person as shall amount to a criminal act or acts.\n\nS. 5(2) repealed by No. 7609 s. 3(b).\n\n* * * * *\n\nS. 6  \namended by Nos 8090 s. 4(a)–(c), 9895  \ns. 2(1)(Sch. 1 item 1(b)), 12/1989  \ns. 4(1)(Sch. 2 item 82.3).\n\n\t6 Alteration of rates of contributions\n\nThe amount to be so contributed by any council Board authority or union may from time to time be altered to such amount as in the opinion of the Association will be sufficient to maintain the fund at a sufficient level for making provision for all liabilities and expenses in respect of the fund.\n\nS. 7  \namended by Nos 9895 s. 2(1)(Sch. 1 item 1(b)), 12/1989  \ns. 4(1)(Sch. 2 item 82.4).\n\n\t7 Liability of municipalities etc.\n\nIn the event of the amount to the credit of the fund being at any time insufficient to pay all liabilities and expenses in respect thereof every council Board authority or union which at such time is contributing to the fund shall pro rata to the amount of its contribution pay to the Association such amount as may be necessary to enable the Association to pay such liabilities and expenses.\n\nS. 8  \namended by Nos 9895 s. 2(1)(Sch. 1 item 1(b)(c)), 12/1989  \ns. 4(1)(Sch. 2 items 82.5, 82.6).\n\n\t8 Division of funds if discontinued\n\nIf the Association at any time determines to discontinue such fund the amount which after payment of all liabilities and expenses shall be to the credit thereof shall be divided amongst the councils Boards authorities and unions which at such time are contributing to the fund, and the sum payable to each such council Board authority or union shall be pro rata to the sums contributed by each of them respectively during the five years next preceding such discontinuance.\n\nS. 9  \namended by Nos 9895 s. 2(1)(Sch. 1 item 1(b)), 12/1989  \ns. 4(1)(Sch. 2 item 82.7).\n\n\t9 Payment of conditions etc.\n\nThe amount for which any council Board authority or union is liable to the Association shall be paid within one month after a written notice specifying the amount payable and signed by the secretary of the Association has been delivered or sent by post to the clerk of secretary of such council Board authority or union.\n\nS. 9A  \ninserted by No. 43/1993  \ns. 24.\n\n\t9A Distribution of surplus\n\nThe Association may distribute any surplus existing in the fund from time to time amongst contributors pro rata with contributions made by the contributors in the period of 5 years immediately preceding the distribution.\n\nNos 1893, 2016, 1158.\n\nS. 10 amended by Nos 4182 s. 2(b), 4712 s. 3(1), 6742 s. 3(2), 8090 s. 5, 12/1989 s. 4(1)(Sch. 2 item 82.8), 81/1989 s. 3(Sch. item 36.2), 74/2000 s. 3(Sch. 1 items 84.1, 84.2), 9/2020 s. 390(Sch. 1 item 72.1).\n\n\t10 Effect of guarantee\n\nA guarantee obtained under the provisions of this Act shall to the extent of the sum thereby guaranteed be deemed to be a compliance with the provisions of the **Local Government Act 2020** or of any other relevant Act or enactment relating to fidelity guarantee of officers or employees of any such authority.\n\nS. 10A inserted by No. 7176 s. 2, repealed by No. 8090 s. 6.\n\n* * * * *\n\nS. 10B inserted by No. 7245 s. 10, amended by Nos 7411 s. 2(2), 8090 s. 7(a)(b), 8168 s. 9.\n\n\t10B Power to Association to issue accident insurance policies to members of certain authorities\n\nThe Association may for such premium as it determines issues to—\n\nS. 10B(az) inserted by No. 8090 s. 7(a), amended by No. 12/1989  \ns. 4(1)(Sch. 2 item 82.9), repealed by No. 81/1989  \ns. 3(Sch.  \nitem 36.3).\n\n* * * * *\n\nS. 10B(a) substituted by No. 81/1989  \ns. 3(Sch.  \nitem 36.3).\n\n(a) a councillor of a municipality; or\n\nS. 10B(b) substituted by No. 81/1989  \ns. 3(Sch.  \nitem 36.3).\n\n(b) a member of an Authority under the **Water Act 1989**; or\n\nS. 10B(c) substituted by No. 81/1989  \ns. 3(Sch.  \nitem 36.3).\n\n(c) a member of the Melbourne and Metropolitan Board of Works—\n\nS. 10B(ca)–10B(i) repealed.[[2]](#endnote-2)\n\n* * * * *\n\na policy of accident insurance insuring him against accidents which arise out of or in the course of the performance of his functions as a councillor, commissioner or member or of his travelling by a reasonably direct route between his place of residence and any other place where the travelling is undertaken solely for the purpose of his performing any such function at that other place and may to the extent that it thinks fit re-insure any risk under the policy.\n\nS. 10C inserted by No. 7609 s. 4, substituted by No. 9/2002 s. 3(Sch. item 12).\n\n\t10C Association may arrange insurance\n\nThe Association may, in relation to insurance requirements of its members and any other bodies constituted under any Act for any public or local governing purpose or constituted for a joint purpose by two or more of such members and other bodies—\n\n(a) do all such things as are ordinarily done by financial services licensees (as defined in section 761A of the Corporations Act) whose licence covers arranging contracts of insurance; and\n\n(b) in particular, receive commission for arranging those contracts of insurance.\n\nS. 10CA inserted by No. 8967 s. 10(b).\n\n\t10CA Members' insurance\n\nWhere the Association effects a policy of accident insurance under section 10C with respect to any of the persons constituting any of the bodies referred to in that section generally each and every such person shall severally be deemed to be insured under the terms of the policy in all respects as if he personally had made a proposal for and entered into a policy of accident insurance in those terms for so long as he remains a person constituting any of those bodies.\n\nS. 10CB inserted by No. 43/1993  \ns. 25.\n\n\t10CB Establishment of liability insurance scheme\n\n(1) The Association must establish and manage a mutual liability insurance scheme for the purpose of providing public liability and professional indemnity insurance.\n\n(2) The insurance scheme must be managed for the benefit of—\n\n(a) the Association;\n\n(b) Councils;\n\nS. 10CB(2)(c) amended by No. 9/2020 s. 390(Sch. 1 item 72.2).\n\n(c) any other body constituted by or under the **Local Government Act 1989** or the **Local Government Act 2020** for any public or local governing purpose;\n\n(d) any other body which the terms and conditions of the insurance scheme provide may be a member of, or participate in, the insurance scheme.\n\nS. 10CC inserted by No. 43/1993  \ns. 25.\n\n\t10CC Terms and conditions of the insurance scheme\n\nThe Association may determine the terms and conditions on which the insurance scheme is to be managed.\n\nS. 10CD inserted by No. 43/1993  \ns. 25.\n\n\t10CD Accounts and report\n\n(1) The Association must keep a separate account for all money received or expended on account of the insurance scheme.\n\n(2) The Association must cause proper accounts and records of its transactions in respect of the insurance scheme to be kept.\n\n(3) The Association must cause to be prepared within four months after the end of each financial year a financial report on the insurance scheme which must include—\n\n(a) a profit and loss account and a balance-sheet; and\n\n(b) a report on the insurance scheme as at the end of the financial year—\n\nand contain such information as is necessary to give a true and fair view of the financial transactions and state of affairs of the insurance scheme.\n\n(4) The financial report prepared pursuant to subsection (3) must be audited by the registered company auditor.\n\n(5) The Association must as soon as is practicable after the end of each financial year and not later than the following 31 December submit to the Minister and members the financial report prepared pursuant to subsection (3) and the report of the auditor pursuant to subsection (4).\n\n(6) The Minister must cause the financial report and the report of the auditor submitted to the Minister under subsection (5) to be laid before the Legislative Council and the Legislative Assembly before the expiration of the fourteenth sitting day of the Legislative Council or the Legislative Assembly (as the case may be) after the financial report and the report of the auditor have been received by the Minister.\n\n(7) For the purposes of this section, the financial year is the 12 month period ending on 30 June.\n\nS. 10D inserted by No. 7609 s. 4.\n\n\t10D Association may publish journal\n\nThe Association may publish and sell copies of a journal dealing with matters of interest to members and officers of bodies constituted under any Act for any public or local governing purpose.\n\n\t11 Accounts\n\n(1) The Association shall cause full and accurate accounts to be kept of all sums of money received or expended by it and of the matters and things for which sums of money shall have been received or expended.\n\nS. 11(2) amended by No. 8090 s. 8.\n\n(2) A separate account shall be kept for all moneys received or expended on account of the Municipal Officers Fidelity Guarantee Fund and with respect to every policy of accident insurance under section 10B.\n\nS. 11(3) amended by No. 6742 s. 4(a)–(c).\n\n(3) The accounts of the Association shall before the thirty-first day of October in each and every year be balanced up to and inclusive of the thirtieth day of June in such year; and forthwith on the accounts being so balanced an annual account shall be made up which shall exhibit a true statement of the receipts and expenditure respectively of the Association during the year immediately preceding with the statement of the balance of such account, and all books accounts and vouchers of the Association shall be examined and audited by a registered company auditor and the balance and account shall be certified by the treasurer of the Association and by the said auditor.\n\nNo. 1140 s. 102.\n\nS. 12 amended by No. 8090 s. 9, substituted by No. 79/2000 s. 285(Sch. 1 item 5).\n\n\t12 Association does not require registration as a general insurer under Duties Act 2000\n\nDespite section 185 of the **Duties Act 2000**, the Association is not required to be registered under Part 2 of Chapter 8 of that Act.\n\nHeading preceding s. 13  \ninserted by No. 9866 s. 2(c).\n\n*Local Government Investment Service Fund*\n\nS. 13  \ninserted by No. 9866 s. 2(c).\n\n\t13 Definitions\n\nIn sections 14 to 20, unless inconsistent with the context or subject-matter—\n\nS. 13 def. of *authorised deposit-taking institution* inserted by No. 11/2001 s. 3(Sch. item 52.1(a)).\n\n***authorised deposit-taking institution*** has the same meaning as in the Banking Act 1959 of the Commonwealth;\n\n***authorized depositor*** means an authorized depositor pursuant to section 17;\n\nS. 13 def. of *bank* repealed by No. 11/2001 s. 3(Sch. item 52.1(b)).\n\n* * * * *\n\n***Fund*** means the fund established pursuant to section 14;\n\nS. 13 def. of *Minister* repealed by No. 46/1998  \ns. 7(Sch. 1).\n\n* * * * *\n\n***Treasurer*** means the Treasurer of Victoria.\n\nS. 14  \ninserted by No. 9866 s. 2(c).\n\n\t14 Local Government Investment Service Fund\n\nThe Association shall establish and keep a Fund to be called the Local Government Investment Service Fund.\n\nS. 15  \ninserted by No. 9866 s. 2(c).\n\n\t15 Payments into Fund\n\n(1) There shall be paid into the Fund—\n\n(a) all money received from authorized depositors;\n\n(b) all money borrowed by the Association pursuant to section 19;\n\n(c) all interest, dividends or other income received on money invested by the Association pursuant to section 18; and\n\n(d) all money received by the Association in respect of the repayment of any loan or the proceeds of the sale of any investments pursuant to section 18.\n\n(2) The Association may deposit in the Fund any money which it has received under this Act—\n\n(a) other than any money referred to in subsection (1); and\n\n(b) which is not immediately required for the purposes for which that money was received—\n\nupon the same terms and conditions which would apply to the Association if it was an authorized depositor with a deposit of that value in the Fund.\n\nS. 16  \ninserted by No. 9866 s. 2(c).\n\n\t16 Application of Fund\n\n(1) The Association may apply money in the Fund—\n\n(a) in the payment of any expenses incurred in the administration of the Fund;\n\n(b) in the repayment of money received from the Association and authorized depositors and interest thereon;\n\n(c) in the repayment of money borrowed by the Association pursuant to section 19 and interest thereon; and\n\n(d) in investments authorized by section 18.\n\n(2) The Association may apply any surplus in the Fund at the end of each financial year in the payment to each authorized depositor during that financial year of an amount calculated on a proportionate basis having regard to the value of deposits made by each authorized depositor and the period of time during which such deposits were held in the Fund.\n\nS. 17  \ninserted by No. 9866 s. 2(c).\n\n\t17 Authorized depositors\n\nThe Association may accept money on deposit from the following authorized depositors—\n\nS. 17(a) amended by No. 12/1989 (Sch. 2 item 82.10).\n\n(a) any council which is a member of the Association; and\n\n(b) any body constituted—\n\nS. 17(b)(i) amended by Nos 12/1989 (Sch. 2 item 82.11), 9/2020 s. 390(Sch. 1 item 72.2).\n\n(i) by or under the **Local Government Act 1989** or the **Local Government Act 2020** for any public or local governing purpose; or\n\nS. 17(b)(ii) amended by No. 12/1989 (Sch. 2 item 82.12).\n\n(ii) for a joint purpose by councils or a council and any other body—\n\nand which body is declared by the Governor in Council on the recommendation of the Minister after consultation with the Treasurer to be an authorized depositor for the purposes of this section—\n\nupon such forms and conditions as may be agreed between the Association and the authorized depositor.\n\nS. 18  \ninserted by No. 9866 s. 2(c).\n\n\t18 Authorized investments\n\n(1) The Association may invest any money in the Fund in—\n\n(a) any manner in which trust funds may be invested pursuant to section 4(1) of the **Trustee Act 1958** other than—\n\n(i) securities of New Zealand; and\n\n(ii) any manner referred to in paragraphs (ia) and (l) of section 4(1) of the **Trustee Act 1958**;\n\nS. 18(1)(b) substituted by No. 11/2001 s. 3(Sch. item 52.2).\n\n(b) any loans irrevocably guaranteed or confirmed by a body that is permitted to use the expression \"bank\" under section 66 of the Banking Act 1959, whether by direct loan, guarantee, letter of credit or any other means;\n\nS. 18(1)(c)(d) repealed by No. 18/1994  \ns. 66(Sch. 2 item 19(a)).\n\n* * * * *\n\n(e) any other manner declared by the Governor in Council on the recommendation of the Treasurer by notice published in the Government Gazette to be an authorized manner of investment for the purposes of this section.\n\nS. 18(2) repealed by No. 18/1994  \ns. 66(Sch. 2 item 19(b)).\n\n* * * * *\n\nS. 19  \ninserted by No. 9866 s. 2(c).\n\n\t19 Borrowing power, etc.\n\nFor the purpose of enabling the maximum utilization of money in the Fund the Association may—\n\nS. 19(a) amended by No. 11/2001 s. 3(Sch. item 52.3(a)).\n\n(a) obtain temporary financial accommodation from any authorised deposit-taking institution by way of overdraft; and\n\nS. 19(b) amended by No. 11/2001 s. 3(Sch. item 52.3(b)).\n\n(b) obtain temporary financial accommodation from any institution person or body other than an authorised deposit-taking institution—\n\n(i) which does not exceed 20 per centum or such higher per centum as may be determined by the Treasurer from time to time and specified in a notice published in the Government Gazette of the total liabilities of the Association in respect of the Fund at the time at which the temporary financial accommodation is obtained; and\n\n(ii) which is fully secured by investments the market value of which at the time at which the temporary financial accommodation is obtained is not less than the amount of the temporary financial accommodation.\n\nS. 20  \ninserted by No. 9866 s. 2(c).\n\n\t20 Accounts\n\n(1) The Association shall cause proper accounts and records of its transactions in respect of the Fund to be kept.\n\n(2) The Association shall cause to be prepared within four months after the end of each financial year a financial report on the Fund which shall include—\n\n(a) a profit and loss account and a balance-sheet; and\n\n(b) a report on the Fund as at the end of the financial year—\n\nand contain such information as is necessary to give a true and fair view of the financial transactions and state of affairs of the Fund.\n\n(3) The financial report prepared pursuant to subsection (2) shall be audited by the auditor referred to in section 11(3).\n\n(4) The Association shall as soon as is practicable after the end of each financial year and not later than the following 31 December submit to the Minister the financial report prepared pursuant to subsection (2) and the report of the auditor pursuant to subsection (3).\n\n(5) The Minister shall cause the financial report and the report of the auditor submitted to him under subsection (4) to be laid before the Legislative Council and the Legislative Assembly before the expiration of the fourteenth sitting day of the Legislative Council or the Legislative Assembly (as the case may be) after the financial report and the report of the auditor have been received by him.\n\n(6) The financial year of the Association shall be the year ending on 30 June.\n\n\n\nEndnotes\n\n1 General information\n\nSee [www.legislation.vic.gov.au](http://www.legislation.vic.gov.au) for Victorian Bills, Acts and current Versions of legislation and up-to-date legislative information.\n\nThe **Municipal Association Act 1907** was assented to on 27 August 1907 and came into operation on 27 August 1907.\n\nINTERPRETATION OF LEGISLATION ACT 1984 (ILA)\n\nStyle changes\n\nSection 54A of the ILA authorises the making of the style changes set out in Schedule 1 to that Act.\n\nReferences to ILA s. 39B\n\nSidenotes which cite ILA s. 39B refer to section 39B of the ILA which provides that where an undivided section or clause of a Schedule is amended by the insertion of one or more subsections or subclauses, the original section or clause becomes subsection or subclause (1) and is amended by the insertion of the expression \"(1)\" at the beginning of the original section or clause.\n\nInterpretation\n\nAs from 1 January 2001, amendments to section 36 of the ILA have the following effects:\n\n• Headings\n\nAll headings included in an Act which is passed on or after 1 January 2001 form part of that Act. Any heading inserted in an Act which was passed before 1 January 2001, by an Act passed on or after 1 January 2001, forms part of that Act. This includes headings to Parts, Divisions or Subdivisions in a Schedule; sections; clauses; items; tables; columns; examples; diagrams; notes or forms. See section 36(1A)(2A).\n\n• Examples, diagrams or notes\n\nAll examples, diagrams or notes included in an Act which is passed on or after 1 January 2001 form part of that Act. Any examples, diagrams or notes inserted in an Act which was passed before 1 January 2001, by an Act passed on or after 1 January 2001, form part of that Act. See section 36(3A).\n\n• Punctuation\n\nAll punctuation included in an Act which is passed on or after 1 January 2001 forms part of that Act. Any punctuation inserted in an Act which was passed before 1 January 2001, by an Act passed on or after 1 January 2001, forms part of that Act. See section 36(3B).\n\n• Provision numbers\n\nAll provision numbers included in an Act form part of that Act, whether inserted in the Act before, on or after 1 January 2001. Provision numbers include section numbers, subsection numbers, paragraphs and subparagraphs. See section 36(3C).\n\n• Location of \"legislative items\"\n\nA \"legislative item\" is a penalty, an example or a note. As from 13 October 2004, a legislative item relating to a provision of an Act is taken to be at the foot of that provision even if it is preceded or followed by another legislative item that relates to that provision. For example, if a penalty at the foot of a provision is followed by a note, both of these legislative items will be regarded as being at the foot of that provision. See section 36B.\n\n• Other material\n\nAny explanatory memorandum, table of provisions, endnotes, index and other material printed after the Endnotes does not form part of an Act.  \nSee section 36(3)(3D)(3E).\n\n2 Table of Amendments\n\nThis publication incorporates amendments made to the **Municipal Association Act 1907** by Acts and subordinate instruments.\n\n–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––\n\n**Municipal Association Act 1933, No. 4182/1933**\n\n| Assent Date: | 29.12.33 |\n| --- | --- |\n| Commencement Date: | 29.12.33 |\n| Current State: | All of Act in operation |\n\n\n**Weights and Measures Act 1939, No. 4712/1939**\n\n| Assent Date: | 18.12.39 |\n| --- | --- |\n| Commencement Date: | 29.10.52: Government Gazette 24.9.52 p. 5441 |\n| Current State: | All of Act in operation |\n\n\n**Municipal Association (Amendment) Act 1961, No. 6742/1961**\n\n| Assent Date: | 18.4.61 |\n| --- | --- |\n| Commencement Date: | 18.4.61 |\n| Current State: | All of Act in operation |\n\n\n**Municipal Association (Accident Insurance) Act 1964, No. 7176/1964**\n\n| Assent Date: | 24.11.64 |\n| --- | --- |\n| Commencement Date: | 24.11.64 |\n| Current State: | All of Act in operation |\n\n\n**Water Authorities Accident Insurance Act 1965, No. 7245/1965**\n\n| Assent Date: | 5.5.65 |\n| --- | --- |\n| Commencement Date: | 1.7.66: Government Gazette 29.6.66 p. 2270 |\n| Current State: | All of Act in operation |\n\n\n**Melbourne and Metropolitan Board of Works (Amendment) Act 1966, No. 7411/1966**\n\n| Assent Date: | 17.5.66 |\n| --- | --- |\n| Commencement Date: | 17.5.66 |\n| Current State: | All of Act in operation |\n\n\n**Municipal Association (Amendment) Act 1967, No. 7609/1967**\n\n| Assent Date: | 5.12.67 |\n| --- | --- |\n| Commencement Date: | 5.12.67 |\n| Current State: | All of Act in operation |\n\n\n**West Moorabool Water Board Act 1968, No. 7698/1968**\n\n| Assent Date: | 7.5.68 |\n| --- | --- |\n| Commencement Date: | 20.6.68: Government Gazette 19.6.68 p. 2183 |\n| Current State: | All of Act in operation |\n\n\n**Municipal Association (Amendment) Act 1971, No. 8090/1971**\n\n| Assent Date: | 6.4.71 |\n| --- | --- |\n| Commencement Date: | 6.4.71 |\n| Current State: | All of Act in operation |\n\n\n**Water Authorities Accident Insurance Act 1971, No. 8168/1971**\n\n| Assent Date: | 16.11.71 |\n| --- | --- |\n| Commencement Date: | 16.11.71 |\n| Current State: | All of Act in operation |\n\n\n**Water and Sewerage Authorities (Accident Insurance and Employés Long Service Leave) Act 1976, No. 8967/1976**\n\n| Assent Date: | 21.12.76 |\n| --- | --- |\n| Commencement Date: | S. 10(a)(b) on 21.12.76: s. 1(3)(xiii) |\n| Current State: | This information relates only to the provision/s amending the **Municipal Association Act 1907** |\n\n\n**Local Government (Investments) Act 1983, No. 9866/1983**\n\n| Assent Date: | 29.3.83 |\n| --- | --- |\n| Commencement Date: | 30.3.83: Government Gazette 30.3.83 p. 692 |\n| Current State: | All of Act in operation |\n\n\n**Water and Sewerage Authorities (Restructuring) Act 1983, No. 9895/1983**\n\n| Assent Date: | 7.6.83 |\n| --- | --- |\n| Commencement Date: | 7.6.83 |\n| Current State: | All of Act in operation |\n\n\n**Local Government (Consequential Provisions) Act 1989, No. 12/1989**\n\n| Assent Date: | 9.5.89 |\n| --- | --- |\n| Commencement Date: | S. 4(1)(Sch. 2 items 82.1–82.12) on 1.11.89: Government Gazette 1.11.89 p. 2798 |\n| Current State: | This information relates only to the provision/s amending the **Municipal Association Act 1907** |\n\n\n**Water (Consequential Amendments) Act 1989, No. 81/1989**\n\n| Assent Date: | 5.12.89 |\n| --- | --- |\n| Commencement Date: | 1.11.90: Government Gazette 15.8.90 p. 2473 |\n| Current State: | All of Act in operation |\n\n\n**Local Government (General Amendment) Act 1993, No. 43/1993**\n\n| Assent Date: | 1.6.93 |\n| --- | --- |\n| Commencement Date: | S. 24 on 1.6.93: s. 2(1); ss 23, 25 on 2.9.93: Government Gazette 2.9.93 p. 2454 |\n| Current State: | This information relates only to the provision/s amending the **Municipal Association Act 1907** |\n\n\n**Financial Management Act 1994, No. 18/1994**\n\n| Assent Date: | 10.5.94 |\n| --- | --- |\n| Commencement Date: | Pt 1 (ss 1–8), ss 60, 61 on 10.5.94: s. 2(1); rest of Act on 1.7.94: s. 2(2) |\n| Current State: | All of Act in operation |\n\n\n**Trade Measurement (Administration) Act 1995, No. 60/1995**\n\n| Assent Date: | 20.6.95 |\n| --- | --- |\n| Commencement Date: | S. 28(4) on 1.1.96: Government Gazette 7.12.95 p. 3381 |\n| Current State: | This information relates only to the provision/s amending the **Municipal Association Act 1907** |\n\n\n**Public Sector Reform (Miscellaneous Amendments) Act 1998, No. 46/1998**\n\n| Assent Date | 26.5.98 |\n| --- | --- |\n| Commencement Date: | S. 7(Sch. 1) on 1.7.98: s. 2(2) |\n| Current State: | This information relates only to the provision/s amending the **Municipal Association Act 1907** |\n\n\n**Statute Law Revision Act 2000, No. 74/2000**\n\n| Assent Date | 21.11.00 |\n| --- | --- |\n| Commencement Date: | S. 3(Sch. 1 item 84.2) on 1.1.96: s. 2(2)(r); s. 3(Sch. 1 item 84.1) on 22.11.00: s. 2(1) |\n| Current State: | This information relates only to the provision/s amending the **Municipal Association Act 1907** |\n\n\n**Duties Act 2000, No. 79/2000**\n\n| Assent Date: | 28.11.00 |\n| --- | --- |\n| Commencement Date: | S. 285(Sch. 1 item 5) on 1.7.01: s. 2 |\n| Current State: | This information relates only to the provision/s amending the **Municipal Association Act 1907** |\n\n\n**Statute Law Amendment (Authorised Deposit-taking Institutions) Act 2001, No. 11/2001**\n\n| Assent Date: | 8.5.01 |\n| --- | --- |\n| Commencement Date: | S. 3(Sch. item 52) on 1.6.01: s. 2(2) |\n| Current State: | This information relates only to the provision/s amending the **Municipal Association Act 1907** |\n\n\n**Corporations (Financial Services Reform Amendments) Act 2002, No. 9/2002**\n\n| Assent Date: | 23.4.02 |\n| --- | --- |\n| Commencement Date: | S. 3(Sch. item 12) on 23.4.02: s. 2 |\n| Current State: | This information relates only to the provision/s amending the **Municipal Association Act 1907** |\n\n\n**Local Government Act 2020, No. 9/2020**\n\n| Assent Date: | 24.3.20 |\n| --- | --- |\n| Commencement Date: | S. 390(Sch. 1 item 72) on 6.4.20: Special Gazette (No. 150) 24.3.20 p. 1 |\n| Current State: | This information relates only to the provision/s amending the **Municipal Association Act 1907** |\n\n\n–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––\n\n3 Amendments Not in Operation\n\nThis version does not contain amendments that are not yet in operation.\n\n4 Explanatory details\n\n1. S. 1: The operation of this Act and the **Municipal Association Act 1933**, No. 4182/1933 was not limited or affected by the **Local Government Act 1934**, No. 4279/1934 section 31(1). See section 31(2) of the **Local Government Act 1934**. [↑](#endnote-ref-1)\n\n2. S. 10B(ca)–10B(i):\n\n  S. 10B(ca) inserted by No. 9895 s. 2(1)(Sch. 1 item 1(d)), repealed by No. 81/1989 s. 3(Sch. item 36.3).\n\n  S. 10B(d)–(f) repealed by No. 81/1989 s. 3(Sch. item 36.3).\n\n  S. 10B(fa) inserted by No. 7698 s. 68, repealed by No. 81/1989  \ns. 3(Sch. item 36.3).\n\n  S. 10B(g)–(i) repealed by No. 81/1989 s. 3(Sch. item 36.3). [↑](#endnote-ref-2)","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"},"summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"Based on the available information, the Act appears to have remained focused on its original purpose of establishing and governing the Municipal Association of Victoria. The consolidation history suggests amendments have been made over time, but there is no indication the core scope has shifted materially from its 1907 intent."},"complexity_factors":["The legislation is extremely old (1907) and has limited available text to analyse, reducing ability to assess full complexity","Institutional/constitutive legislation (creating a body) tends to be straightforward in structure","Limited version history information provided makes it difficult to assess amendment complexity","Narrow, single-purpose scope keeps complexity low","Primarily affects a specific sector (local government) rather than the general public"],"plain_english_summary":"## Municipal Association Act 1907\n\nThis is a very old Victorian law (over 115 years old) that established and governs the **Municipal Association of Victoria** — an organisation that represents local councils (municipalities) across Victoria.\n\n**What it does:**\n- Creates a formal legal body that allows local councils to join together as a collective organisation\n- Gives that organisation legal standing (the ability to enter contracts, own property, and act officially)\n- Sets out the rules for how the association operates\n\n**Who it affects:**\n- Local councils and their elected representatives in Victoria\n- Ratepayers (residents who pay council rates) indirectly, as their councils may participate\n- The organisation now known as the **Municipal Association of Victoria (MAV)**\n\n**Why it matters:**\n- It gives local government a unified voice to lobby state and federal governments\n- It allows councils to share resources, coordinate responses to issues, and advocate collectively\n- Without this legal foundation, the MAV would have no formal authority to act on behalf of councils\n\n**In plain terms:** Think of it like the founding charter for a 'union of councils' — it makes the group official and gives it the legal tools to function. Most ordinary Victorians would rarely interact with this law directly, but it underpins how their local council participates in state-wide local government decisions."},"kimi_summary":{"content_quality":"ok","complexity_score":5,"scope_assessment":{"changed":true,"description":"The legislation has expanded significantly beyond its original 1907 purpose. The Preamble reveals the original intent was simply to incorporate the Association and establish a Fidelity Guarantee Fund for municipal officers. Over 113 years, the Act has accumulated: accident insurance powers (1960s-70s), insurance broking authority (2002), a mandatory mutual liability insurance scheme (1993), and a comprehensive investment fund with borrowing powers (1983). The statute has transformed from a simple incorporation and fidelity guarantee measure into a complex financial services and insurance regulatory framework for Victorian local government."},"complexity_factors":["Multiple distinct functional regimes in one statute: incorporation rules, fidelity insurance, accident insurance, liability insurance, and investment fund management","Heavy amendment history with 20+ amending Acts since 1907, creating fragmented section numbering (e.g., sections 10B, 10CA, 10CB, 10CC, 10CD, 10D)","Cross-references to external legislation including Local Government Act 2020, Water Act 1989, Corporations Act, Banking Act 1959 (Cth), Trustee Act 1958, and Duties Act 2000","Conditional borrowing powers in section 19 with percentage caps (20% or higher as gazetted) and security requirements","Dual accounting requirements: separate accounts required for Fidelity Guarantee Fund, accident insurance policies, and the Investment Service Fund (sections 11 and 20)","Governance requirements including Governor in Council approvals for rules (section 3) and authorized depositor declarations (section 17)","Mandatory auditing and parliamentary reporting obligations for the investment fund and insurance scheme (sections 10CD and 20)"],"plain_english_summary":"**What this law does:**\n\nThis Act creates and empowers the **Municipal Association of Victoria** (MAV) — the peak body representing local councils in Victoria. Originally passed in 1907, it has grown into a comprehensive statute governing how Victorian local government bodies cooperate, insure themselves, and manage money together.\n\n**Key functions:**\n\n*   **Incorporation:** Makes the MAV a legal entity (a \"body corporate\") that can own property, sue, be sued, and enter contracts.\n*   **Membership:** Every Victorian council appoints a councillor to represent it in the Association.\n*   **Insurance schemes:**\n    *   **Fidelity Guarantee Fund:** A mutual fund where councils pool money to insure against theft or dishonesty by their employees. If the fund runs low, all contributing councils must chip in proportionally.\n    *   **Accident insurance:** The MAV can issue personal accident policies covering councillors and water authority members while performing their duties.\n    *   **Liability insurance:** The MAV must run a mutual scheme providing public liability and professional indemnity insurance for councils and related bodies.\n    *   **Insurance broking:** The MAV can arrange other insurance policies for members and earn commission.\n*   **Investment fund:** The **Local Government Investment Service Fund** lets councils and approved bodies deposit surplus money. The MAV pools these funds, invests them (within strict limits), and distributes profits back to depositors. It can also borrow short-term to manage cash flow.\n*   **Exemption:** The MAV doesn't need to register as a general insurer under the Duties Act 2000, avoiding duplicate regulation.\n\n**Who it affects:**\n\n*   All Victorian local councils (mandatory members)\n*   Water authorities and other public bodies\n*   Councillors and officers (through insurance coverage)\n\n**Why it matters:**\n\nThis law enables Victorian councils to achieve economies of scale. Instead of 79 separate councils negotiating individual insurance policies and investment deals, they pool resources through the MAV. This reduces costs, shares risk collectively, and provides financial services tailored to local government needs. The Act essentially underwrites the financial infrastructure that keeps Victorian local government running securely."},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":true,"description":"The Act's original text (incorporation and a fidelity guarantee fund) has been broadened by later amendments to include statutory powers to arrange accident insurance (s.10B, s.10C), to establish and manage a mutual public liability and professional indemnity insurance scheme (s.10CB–10CD), and to operate a Local Government Investment Service Fund accepting deposits, investing and borrowing within prescribed limits (s.14–20). Those additions extend the Association's role from representative and fidelity guarantee functions (preamble, s.4–6) into active financial services, insurance provisioning and investment management (s.10B–10CD, s.14–20)."},"complexity_factors":["Multiple overlapping functional regimes: corporate/incorporation rules, fidelity fund, accident insurance, mutual liability insurance scheme, and a separate investment fund (s.2, s.4–11, s.10CB–10CD, s.14–20).","Extensive external cross-references to other statutes (Trustee Act 1958, Banking Act 1959, Local Government Act 1989/2020, Duties Act 2000) that determine permitted investments, depositor definitions and registration exemptions (s.12, s.13 defns, s.18(1)(a),(b)).","Discretion vested in multiple actors: Association sets rates and terms (s.3(2)(c), s.6, s.10CC), Governor in Council and Minister have approval/declaring roles (s.3(2), s.17(b)(ii)), and the Treasurer may vary borrowing limits (s.19(b)(i)).","Separate accounting/audit and reporting chains with tight deadlines for multiple funds and schemes (s.10CD(3)–(6), s.11(3), s.20(2)–(5)).","Funding mechanics include ongoing premiums, pro rata calls on shortfalls, and five‑year look‑back rules for surplus/distribution (s.5, s.7, s.8, s.9A, s.16(2)).","Investment and liquidity limitations and options (Trustee Act limits, Governor-in-Council additions, security requirements for temporary finance) add technical compliance requirements (s.18, s.19).","Layered historical amendments and repeals create interpretive work to track current operative provisions (document shows many amendments across decades)."],"plain_english_summary":"# What this law does (mechanics first)\n\n- It incorporates the Municipal Association of Victoria as a legal entity with perpetual succession and a common seal (s.2). That gives the Association capacity to hold property, enter contracts, sue and be sued (s.2(1), s.2(3)(b)–(e)).\n\n- It preserves the Association's existing rules and lets the Association make new rules for management, subscriptions and contributions, subject to the Governor in Council's approval (s.3(1)–(2)).\n\n- It allows the Association to establish and run a Municipal Officers Fidelity Guarantee Fund to insure members against losses caused by employee dishonesty, to set and alter premiums, and to require extra payments from contributors if the fund is short (s.4, s.5, s.6, s.7). If the fund is discontinued, any remaining balance is distributed pro rata to contributors using a five‑year look‑back (s.8, s.9A).\n\n- It authorises the Association to issue accident insurance policies to councillors and certain members for risks arising from performance of their functions and travel (s.10B), and to arrange insurance generally for members (s.10C). Policies effected by the Association are treated as if each covered person had taken the policy out personally (s.10CA).\n\n- It requires the Association to establish, manage and account separately for a mutual liability insurance scheme providing public liability and professional indemnity cover for the Association, councils and other specified bodies; the Association sets the scheme terms and must prepare audited financial reports and provide them to the Minister and Parliament (s.10CB, s.10CC, s.10CD).\n\n- It creates a Local Government Investment Service Fund (LGIS Fund) that can accept deposits from member councils and certain declared public bodies (s.14–17), invest under prescribed limits and manners (s.18), borrow or obtain temporary accommodation subject to limits (s.19), and prepare audited annual accounts to be tabled in Parliament (s.20).\n\n- The Association is expressly not required to register as a general insurer under a specified Duties Act provision (s.12).\n\n# Who is affected (who pays, who decides)\n\n- Who pays: member councils, specified Authorities under the Water Act or other public/local bodies, and certain unions are eligible contributors or depositors. They pay premiums to the Fidelity Guarantee Fund (s.5) and may deposit money in the LGIS Fund (s.17). If the fidelity fund is insufficient, contributors are liable to top up the shortfall pro rata to their contributions (s.7). Notices requiring payment must be met within one month of delivery (s.9).\n\n- Who decides: the Association determines rates of subscription and contributions and the terms of insurance schemes (s.3(2)(c), s.6, s.10CC). The Governor in Council must approve the Association's rules (s.3(2)). The Association decides investments for the LGIS Fund within statutory limits and may accept authorized depositors as declared by the Governor in Council on the Minister's recommendation (s.17(b)(ii), s.18, s.16).\n\n- External oversight: financial reports and auditor reports for insurance schemes and the LGIS Fund must be prepared annually, audited by a registered company auditor and submitted to the Minister for tabling in Parliament (s.10CD(3)–(6), s.20(2)–(5), s.11(3)). The Treasurer also has a specified power to increase a borrowing percentage used for temporary finance for the Fund (s.19(b)(i)).\n\n# Why the Act says it exists (official rationale) and how that maps to costs and incentives\n\n- Official rationale (preamble): the Association was established to promote efficient municipal government and to watch over and protect municipal interests; the Act incorporates the Association and expressly enables a fidelity guarantee fund and other supportive arrangements.\n\n- Tested against costs and incentives:\n  - Direct cost to members: premiums and deposits (s.5, s.15(1)(a)). Members also face potential additional pro rata calls to meet shortfalls in the fidelity fund (s.7) and must pay within one month of notice (s.9). Those are clear, recurring financial obligations.\n  - Pricing and allocation incentives: the Association sets contribution rates and insurance terms (s.3(2)(c), s.6, s.10CC). That centralised discretion creates incentives for the Association to balance affordability for members against maintaining adequate reserves. Members’ financial positions can change private budgeting and procurement decisions (e.g. choice between Association arrangements and private-market insurers).\n  - Risk-sharing and moral hazard: the fidelity fund and mutual insurance scheme pool risk among contributors (s.4, s.10CB). Pooling reduces individual exposure but creates a mechanism where contributors may rely on pooled resources rather than self‑insuring; the statute addresses under‑funding by permitting pro rata calls (s.7) and distribution rules for surplus/discontinuance (s.9A, s.8).\n  - Administrative and compliance costs: the Association must keep separate accounts, prepare audited financial reports and submit them to the Minister and Parliament within fixed timeframes (s.10CD(3)–(6), s.11(3), s.20(2)–(5)). Those obligations impose ongoing audit and reporting costs and create transparency obligations for members and the public sector.\n  - Market effects and competition: the Association may arrange insurance and receive commission (s.10C(b)) and runs a mutual liability insurance scheme (s.10CB). The Association is also exempted from a specific registration requirement under the Duties Act (s.12). Those features enable the Association to operate in the insurance space for members alongside private insurers; the Act centralises a membership-based alternative but does not itself prescribe exclusivity.\n  - Investment and liquidity management: the LGIS Fund allows members to deposit funds and receive proportionate surplus distributions (s.15, s.16(2)). The Association may invest subject to Trustee Act limits and Governor-in-Council declarations (s.18). For liquidity, it may obtain temporary finance subject to limits and security conditions (s.19). These powers create opportunities to earn returns on pooled cash but also expose the Fund and, indirectly, depositors to investment and borrowing risks constrained by statute.\n\n# Trade-offs, implementation risks and discretion points to watch (source-grounded)\n\n- Discretion points: the Association determines contributions and insurance terms (s.3(2)(c), s.6, s.10CC). The Governor in Council approves rules (s.3(2)). The Treasurer can set higher temporary borrowing percentages for the Fund (s.19(b)(i)). The Governor in Council and Minister have roles in declaring authorized depositors (s.17(b)(ii)) and additional investment manners may be authorised by Gazette notice on the Treasurer's recommendation (s.18(1)(e)). Those are explicit statutory levers.\n\n- Compliance burdens and reporting: separate accounting for each fund and scheme, audited financial reports within four months after year end and tabling in Parliament (s.10CD(3)–(6), s.20(2)–(5), s.11(3)). Audits must be by a registered company auditor (s.10CD(4), s.20(3)).\n\n- Who bears shortfalls or gains: contributors bear shortfalls via pro rata calls (s.7) and share surplus distributions pro rata using a specified five‑year period where applicable (s.8, s.9A, s.16(2)).\n\n- Comparative options remain: the Act enables the Association to provide insurance and accept deposits, but it does not preclude members from pursuing private insurers or other investment arrangements; purchasing from the Association is an available, statutory option (s.10C, s.14–19).\n\n# Net mechanical effect in one sentence\n\nThe Act makes the Municipal Association of Victoria a corporate entity empowered to manage membership subscriptions, run a fidelity guarantee fund, operate mutual insurance arrangements (including public liability and professional indemnity), accept member deposits into a governed investment fund, invest and borrow under statutory limits, and produce audited financial reports that are submitted to the Minister and tabled in Parliament (see s.2, s.4–11, s.10CB–10CD, s.14–20)."}},"importantCases":[],"_links":{"self":"/api/acts/municipal-association-act-1907","history":"/api/acts/municipal-association-act-1907/history","analysis":"/api/acts/municipal-association-act-1907/analysis","conflicts":"/api/acts/municipal-association-act-1907/conflicts","importantCases":"/api/acts/municipal-association-act-1907/important-cases","documents":"/api/acts/municipal-association-act-1907/documents"}}