What it does
The Local Government Act 1989 (the Act) establishes the legislative foundation for local government in Victoria as a distinct tier of government under the Constitution Act 1975 (see the preamble in s.1(1)–(6) and the obligation in s.1A to interpret the Act to give effect to the preamble and the local government charter, though the charter itself was repealed by the Local Government Act 2020). Section 1B, inserted by the Local Government Act 2020, provides that the 1989 Act is to be read as forming part of the 2020 Act, with the latter prevailing to the extent of any inconsistency. In substance, the Act defines the powers, duties and accountability mechanisms of municipal councils.
Core functions are distributed across its Parts. Part 2 (largely repealed but conceptually preserved through the 2020 Act) dealt with the constitution of councils as bodies corporate. Part 3 (now largely repealed) historically governed elections, with surviving definitional elements in s.3(1) such as "election day", "election period" and "how-to-vote card". Part 4 addresses council administration, including the roles of the mayor, councillors and staff (ss 94–98, many repealed but with surviving definitions of "Chief Executive Officer", "Council staff" and "senior officer" in s.3(1)). Part 7 (ss 136–150, many repealed) sets principles of sound financial management (cross-referenced in the definition in s.3(1)).
The most operative remaining provisions are in Part 8, which comprehensively regulates rates and charges on rateable land. Section 154(1) declares that all land is rateable except for specified categories (Crown land, land used for charitable or religious purposes, farm land, etc.), with exclusions and deeming rules in s.154(2)–(3B) and s.156(3A)–(5A). Councils may declare general rates, municipal charges, service rates/charges, special rates/charges and environmental upgrade charges (s.155). Valuation systems (site value, net annual value or capital improved value) are chosen under s.157, with mandatory use of Valuer-General valuations (s.157(3)). Declaration requirements are in s.158, including the 30 June deadline, instalment options and public notice obligations. Differential rates are permitted only under the capital improved value system (s.161(1)), subject to a 4:1 ratio between highest and lowest rates (s.161(5)), detailed objectives (s.161(2)), Ministerial guidelines (s.161(2B)) and public availability of information (s.161(3)). Special rates and charges require a "special benefit" test (s.163(1)), public notice (s.163(1A)–(1C)), a benefit ratio calculation (s.163(2A)–(2B)), and an objection process where a majority of liable properties can block the scheme (s.163B). Environmental upgrade agreements (Division 2A, ss 181A–181J) allow councils to partner with owners and lenders to fund energy, water or sustainability works, with charges levied under s.181C that must be passed through to repay the lender (s.181E–181F). Cladding rectification agreements (Part 8B, ss 185H–185N) follow a similar model for building safety works.