NORTHERN TERRITORY OF AUSTRALIA
LOCAL GOVERNMENT GRANTS COMMISSION ACT 1986
As in force at 18 August 2023
Table of provisions
Part I Preliminary
1 Short title ......................................................................................... 1
2 Commencement .............................................................................. 1
3 Definitions ........................................................................................ 1
Part II Establishment of Local Government
Grants Commission
4 Establishment of Commission ......................................................... 2
5 Composition of Commission and appointment of members ............ 2
6 Chairperson ..................................................................................... 3
7 Period of appointment of members.................................................. 3
8 Termination of appointment of member ........................................... 3
9 Appointment of deputy members ..................................................... 4
10 Validity of action of Commission ...................................................... 4
11 Proceedings of Commission ............................................................ 4
Part III Functions and powers of Commission
12 Functions of Commission ................................................................ 5
13 Powers of Commission .................................................................... 5
14 Committee of Commission............................................................... 6
15 Conduct of inquiry ............................................................................ 6
Part IV Miscellaneous
16 Report of Commission ..................................................................... 7
17 Consideration of recommendations of Commission ........................ 7
18 Commission may require information .............................................. 8
19 Declaration of local governing body................................................. 8
20 Notification of amount of funds ........................................................ 8
22 Staff ................................................................................................. 8
Part V Transitional matters for Local Government
Grants Commission Amendment Act 2023
23 Amendments to title of Chairperson ................................................ 9
24 Timing of repeal of audit requirement .............................................. 9
Local Government Grants Commission Act 1986 ii
ENDNOTES
NORTHERN TERRITORY OF AUSTRALIA
As in force at 18 August 2023
LOCAL GOVERNMENT GRANTS COMMISSION ACT 1986
An Act to establish a Local Government Grants Commission to make
recommendations concerning the distribution of financial assistance to
local government bodies and for related purposes
Part I Preliminary
1 Short title
This Act may be cited as the Local Government Grants
Commission Act 1986.
2 Commencement
This Act shall come into operation on a date to be fixed by the
Administrator by notice in the Gazette.
3 Definitions
In this Act:
Chairperson means:
(a) the Chairperson of the Commission appointed under
section 6; or
(b) if a deputy of the Chairperson appointed under section 9(1) is
exercising the powers or performing the functions or duties of
the Chairperson – that deputy.
Commission means the Northern Territory Grants Commission
established by this Act.
committee means a committee of the Commission established
under section 14.
local governing body means a local government council or a body
declared by the Minister under section 19 to be a local governing
body.
member means a member of the Commission.
Part II Establishment of Local Government Grants Commission
Local Government Grants Commission Act 1986 2
report means a report of the Commission under section 16.
Part II Establishment of Local Government Grants
Commission
4 Establishment of Commission
(1) There is established by this Act a commission to be known as the
Northern Territory Grants Commission.
(2) The Commission:
(a) is a body corporate with perpetual succession;
(b) shall have a common seal; and
(c) is capable, in its corporate name, of acquiring, holding and
disposing of real (including leasehold) and personal property
and of suing and being sued.
(3) All courts, judges and persons acting judicially shall take judicial
notice of the common seal of the Commission affixed to a
document and shall assume that it was duly affixed.
5 Composition of Commission and appointment of members
(1) The Commission is to consist of 4 members, of whom:
(a) subject to subsection (2), 3 are to be appointed by the
Minister; and
(b) one is to be the Chief Executive Officer of the Agency or their
nominee.
(2) Of the members appointed under subsection (1)(a):
(a) one must be a person who, in the opinion of the Minister, is
capable of representing the interests of councils for
municipalities (as defined in section 7 of the Local
Government Act 2019); and
(b) one must be a person who, in the opinion of the Minister, is
capable of representing the interests of councils for shires or
regions (as defined in section 7 of the Local Government
Act 2019).
(3) The Minister must, before making an appointment under
subsection (2), request the prescribed corporation within the
meaning of section 9 of the Local Government Act 2019 to
Part II Establishment of Local Government Grants Commission
Local Government Grants Commission Act 1986 3
nominate 3 persons from whom may be appointed a member to
represent the interests of municipal councils and 3 other persons
from whom may be appointed a member to represent the interests
of shire councils or regional councils.
(4) Nominations under subsection (3) are to be made to the Minister on
or before a date specified by the Minister.
6 Chairperson
(1) The Minister must appoint one member appointed under
section 5(1)(a) to be the Chairperson.
(2) The Chairperson holds office for 5 years or such lesser term as is
specified by the Minister but is eligible for re-appointment.
7 Period of appointment of members
A member appointed under section 5(1)(a) holds office for 5 years
or such lesser term as is specified by the Minister but is eligible for
re-appointment.
8 Termination of appointment of member
(1) The Minister may terminate the appointment of the Chairperson or
a member appointed under section 5(1)(a):
(a) for misbehaviour or incompetence; or
(b) if the member becomes incapable of performing the member's
duties and the Minister is of the opinion that it is reasonable in
the circumstances to terminate his appointment.
(2) The Minister must terminate the appointment of the Chairperson or
a member appointed under section 5(1)(a) if the member:
(a) becomes bankrupt, applies to take the benefit of any law for
the relief of bankrupts or insolvent debtors, compounds with
the member's creditors or makes an assignment of the
member's remuneration for their benefit;
(b) is convicted of an offence involving dishonesty;
(c) is absent without leave granted by the Commission from
3 consecutive meetings of the Commission; or
(d) becomes of unsound mind.
Part II Establishment of Local Government Grants Commission
Local Government Grants Commission Act 1986 4
(3) The Chairperson or a member appointed under section 5(1)(a) may
resign the member's office in writing signed by the member and
delivered to the Minister.
9 Appointment of deputy members
(1) The Minister may appoint a person to be a deputy of the
Chairperson or of a member appointed under section 5(1)(a).
(2) A person appointed as a deputy under subsection (1) must have
qualifications and experience similar to that of the Chairperson or
the member for whom the member is appointed as a deputy.
(4) A deputy may exercise the powers and perform the functions and
duties of the Chairperson or the member, as the case may be, for
whom the deputy is appointed as a deputy.
(5) An act done or omitted to be done by a deputy is taken to have
been done or omitted to have been done by the Chairperson or the
member, as the case may be, for whom the deputy is appointed as
a deputy.
10 Validity of action of Commission
An act or decision of the Commission shall not be invalid by reason
only of a vacancy in the office of a member or of any defect in the
appointment of a member.
11 Proceedings of Commission
(1) The Commission must meet as often as is necessary to carry out its
functions and must meet when required to do so by the Minister.
(2) The Commission has the power to devise such rules as it considers
necessary to allow it to organise its affairs in an efficient manner.
(3) The Chairperson or a deputy of the Chairperson must preside at all
meetings of the Commission.
(4) At a meeting of the Commission the Chairperson and 2 members
constitute a quorum.
(5) A question arising at a meeting of the Commission must be
determined by a majority of the votes of the Chairperson and
members present.
(6) The Chairperson at a meeting of the Commission has a deliberative
vote and in the event of an equality of votes also has a casting vote.
Part III Functions and powers of Commission
Local Government Grants Commission Act 1986 5
Part III Functions and powers of Commission
12 Functions of Commission
(1) The functions of the Commission are to make recommendations to
the Minister in a report in respect of:
(a) the amounts of money to be allocated to local governing
bodies from the money provided to the Territory under the
Local Government (Financial Assistance) Act 1995 (Cth); and
(b) such other matters relating to the finances of local governing
bodies as the Minister from time to time, refers to the
Commission.
(2) In making a recommendation to the Minister under
subsection (1)(a), the Commission shall ensure that:
(a) the total amount of all money recommended to be allocated in
a financial year is equal to the amount of money provided to
the Territory under the Local Government (Financial
Assistance) Act 1995 (Cth) for that year; and
(b) as far as possible, the amount of money recommended to be
allocated to a local governing body is sufficient to enable it, by
reasonable effort, to function at a standard not appreciably
below that of other local governing bodies which are, in the
opinion of the Commission, similar to that body in relation to
those matters the Commission considers relevant.
(3) In respect of money which is not provided to the Territory under the
Local Government (Financial Assistance) Act 1995 (Cth), the
Commission in making a recommendation to the Minister under
subsection (1) in respect of a local governing body may take into
account the special needs or disabilities of that body.
13 Powers of Commission
(1) The Commission has power to do all things necessary or
convenient to be done in connection with or incidental to the
performance of its functions.
(2) Without limiting the generality of subsection (1), but subject to
subsection (3) and to section 12(1), the Commission has the power
to:
(a) conduct such inquiries and carry out such investigations as it
considers necessary in order to perform its functions;
(b) recommend special grants to local governing bodies; and
Part III Functions and powers of Commission
Local Government Grants Commission Act 1986 6
(c) recommend that a proposed recipient of a special grant be not
obliged to apply that grant for any specific purpose.
(3) Notwithstanding subsection (2), the Commission shall not in respect
of a matter referred to it under section 12(1)(b) make a
recommendation to the Minister which is inconsistent with a
principle, if any, which the Minister specifies in referring the matter
to the Commission.
14 Committee of Commission
(1) The Chairperson may, by notice in writing, establish a committee of
the Commission.
(2) A committee consists of such member or members as the
Chairperson appoints.
(3) Subject to such limitations, if any, as the Chairperson may
determine, a committee may exercise such of the powers of the
Commission to hold an inquiry or to carry out an investigation as
the Chairperson determines and specifies in the notice under
subsection (1) establishing the committee.
(4) Nothing in this section prevents:
(a) the Chairperson from appointing more than one committee at
any one time; or
(b) if more than one committee is appointed at any one time, a
committee from exercising its powers under this Act.
(5) An inquiry held, investigation carried out or other thing done by a
committee under this section is taken to be an inquiry held,
investigation carried out or thing done by the Commission.
15 Conduct of inquiry
Where under this Act the Commission or a committee holds an
inquiry, the Inquiries Act 1945 (other than the requirement to report
under that Act) shall apply to and in relation to that inquiry as if:
(a) the Commission or committee were a Board appointed; and
(b) the subject of the inquiry were a matter specified in an
instrument of appointment of a Board,
under section 4 of that Act.
Part IV Miscellaneous
Local Government Grants Commission Act 1986 7
Part IV Miscellaneous
16 Report of Commission
(1) By 15 November in each year, the Commission must give the
Minister a report on the activities of the Commission during the
immediately preceding financial year.
(2) Without limiting subsection (1), the report must contain the
following:
(a) all recommendations of the Commission under section 12
made in the year to which the report relates;
(b) a summary of the methodology used and the amounts last
recommended by the Commission to be allocated;
(c) a summary of all inquiries held or investigations carried out by
the Commission during the year.
17 Consideration of recommendations of Commission
(1) The Minister on receipt of a report may:
(a) accept the recommendations contained in the report; or
(b) return the report to the Commission with a request that it
reconsider a recommendation in relation to a particular matter.
(2) Where under subsection (1)(b) the Minister returns a report to the
Commission with a request that it reconsider a recommendation,
the Commission shall reconsider the recommendation and take into
account any matter referred to by the Minister and shall forward the
report to the Minister with such further recommendation as it thinks
fit.
(3) The Minister shall, on receipt of a recommendation of the
Commission under subsection (2), where the recommendation
relates to money provided to the Territory under the Local
Government (Financial Assistance) Act 1995 (Cth), approve that
recommendation.
(4) The Minister shall within 6 sitting days of the Legislative Assembly
after:
(a) accepting the recommendations in a report in accordance with
section 17(1)(a); or
(b) receiving a report under section 17(2),
Part IV Miscellaneous
Local Government Grants Commission Act 1986 8
table that report in the Legislative Assembly.
18 Commission may require information
(1) The Commission shall in respect of each financial year, by notice in
writing to each local governing body, require each body, within the
time specified in the notice, to provide the Commission with such
information as to its affairs, in such form, as the Commission
specifies in the notice.
(2) The Commission may, by notice in writing, require a local governing
body to provide the Commission within the time specified in the
notice, such further or other information in relation to its affairs, in
such form, as the Commission specifies in the notice.
(3) Where a local governing body fails to comply with a notice under
subsection (1) or (2), the Commission is not bound, in respect of
the financial year to which the notice relates, to make a
recommendation in relation to the payment of a special grant to that
body.
19 Declaration of local governing body
The Minister may, for the purposes of this Act, by notice in the
Gazette declare a body to be a local governing body.
20 Notification of amount of funds
The Minister shall, as soon as practicable in each financial year,
notify the Commission of the total amounts of money proposed to
be made available for allocation to local governing bodies in that
financial year, for the purpose of enabling the Commission to
perform its functions under this Act.
22 Staff
(1) Subject to subsection (2), the Commission may employ, on such
terms and conditions as it thinks fit, such persons as it thinks
necessary for the purposes of the Commission.
(2) The Commission may, by agreement with the Commissioner for
Public Employment, employ a public sector employee to assist the
Commission in the carrying out of its functions.
Part V Transitional matters for Local Government Grants Commission Amendment
Act 2023
Local Government Grants Commission Act 1986 9
Part V Transitional matters for Local Government
Grants Commission Amendment Act 2023
23 Amendments to title of Chairperson
The amendments to this Act by the Local Government Grants
Commission Amendment Act 2023 do not affect an appointment to
the Commission of any person who held the appointment
immediately before the commencement of section 4 of that Act,
other than to the extent the amendments change the title of the
position to which the person is appointed.
24 Timing of repeal of audit requirement
For the purposes of section 10 of the Financial Management
Act 1995, the repeal of section 21 of this Act is taken to have had
effect at the end of the financial year immediately preceding the
financial year in which section 5 of the Local Government Grants
Commission Amendment Act 2023 commences.
ENDNOTES
Local Government Grants Commission Act 1986 10
ENDNOTES
1 KEY
Key to abbreviations
amd = amended od = order
app = appendix om = omitted
bl = by-law pt = Part
ch = Chapter r = regulation/rule
cl = clause rem = remainder
div = Division renum = renumbered
exp = expires/expired rep = repealed
f = forms s = section
Gaz = Gazette sch = Schedule
hdg = heading sdiv = Subdivision
ins = inserted SL = Subordinate Legislation
lt = long title sub = substituted
nc = not commenced
2 LIST OF LEGISLATION
Local Government Grants Commission Act 1986 (Act No. 22, 1986)
Assent date 30 June 1986
Commenced 1 July 1986 (Gaz S37, 1 July 1986)
Local Government Grants Commission Amendment Act 1988 (Act No. 56, 1988)
Assent date 17 November 1988
Commenced 1 December 1988 (s 2)
Public Sector Employment and Management (Consequential Amendments) Act 1993
(Act No. 28, 1993)
Assent date 30 June 1993
Commenced 1 July 1993 (s 2, s 2 Public Sector Employment and
Management Act 1993 (Act No. 11, 1993) and Gaz S53,
29 June 1993)
Local Government (Consequential Amendments) Act 1993 (Act No. 84, 1993)
Assent date 31 December 1993
Commenced 1 June 1994 (s 2, s 2 Local Government Act 1993 (Act
No. 83, 1993) and Gaz S35, 20 May 1994)
Financial Management (Consequential Amendments) Act 1995 (Act No. 5, 1995)
Assent date 21 March 1995
Commenced 1 April 1995 (s 2, s 2 Financial Management 1995 (Act No. 4,
1995) and Gaz S13, 31 March 1995)
Statute Law Revision Act 2007 (Act No. 4, 2007)
Assent date 8 March 2007
Commenced 8 March 2007
Local Government (Consequential Amendments) Act 2008 (Act No. 28, 2008)
Assent date 14 November 2008
Commenced 1 July 2008 (s 2)
ENDNOTES
Local Government Grants Commission Act 1986 11
Local Government Grants Commission Amendment Act 2009 (Act No. 36, 2009 )
Assent date 15 December 2009
Commenced 15 December 2009
Local Government Amendment Act 2013 (Act No. 28, 2013)
Assent date 8 November 2013
Commenced 8 November 2013
Local Government Amendment Act 2014 (Act No. 19, 2014)
Assent date 2 June 2014
Commenced s 16: 1 July 2014; s 18: 1 December 2014; rem: 2 June 2014
(s 2)
Local Government Act 2019 (Act No. 39, 2019)
Assent date 13 December 2019
Commenced pt 8.6: 1 July 2022; rem: 1 July 2021 (Gaz S27,
30 June 2021)
Amending Legislation
Statute Law Revision Act 2020 (Act No. 26, 2020)
Assent date 19 November 2020
Commenced 20 November 2020 (s 2)
Local Government Amendment Act 2021 (Act No. 15, 2021)
Assent date 25 May 2021
Commenced 26 May 2021 (s 2)
Local Government Grants Commission Amendment Act 2023 (Act No. 21, 2023)
Assent date 17 August 2023
Commenced 18 August 2023 (s 2)
3 GENERAL AMENDMENTS
General amendments of a formal nature (which are not referred to in the table
of amendments to this reprint) are made by the Interpretation Legislation
Amendment Act 2018 (Act No. 22 of 2018) to: ss 1, 5, 15, 21 and 22.
4 LIST OF AMENDMENTS
s 3 amd No. 84, 1993, s 4; No. 28, 2008, s 3; No. 36, 2009, s 3; No. 19, 2014,
s 26; No. 21, 2023, s 4
s 5 sub No. 56, 1988, s 4
amd No. 28, 1993, s 3; No. 84, 1993, s 4; No. 28, 2008, s 3; No. 28, 2013,
s 61; No. 39, 2019, s 370; No. 21, 2023, s 7
s 6 amd No. 21, 2023, s 7
s 8 amd No. 21, 2023, s 7
s 9 amd No. 56, 1988, s 5; No. 28, 1993, s 3; No. 21, 2023, s 7
s 11 amd No. 56, 1988, s 6; No. 21, 2023, s 7
s 12 amd No. 4, 2007, s 7
s 14 amd No. 21, 2023, s 7
s 16 amd No. 36, 2009, s 4
s 17 amd No. 4, 2007, s 7
s 21 sub No. 5, 1995, s 19
rep No. 21, 2023, s 5
ENDNOTES
Local Government Grants Commission Act 1986 12
s 22 amd No. 28, 1993, s 3; No. 21, 2023, s 7
pt V hdg ins No. 21, 2023, s 6
ss 23 – 24 ins No. 21, 2023, s 6