Photo by Teresa Jang
The Local Government and Other Legislation Amendment (Councillor Conduct) Bill 2025, introduced on 14 October 2025, represents the most significant reform to councillor discipline in NSW local government history. The Bill transfers the supervision of councillor conduct from the NSW Civil and Administrative Tribunal (NCAT) to the Land and Environment Court (LEC), creating a new Class 9 jurisdiction specifically for these matters.
The Bill is back before NSW parliament on 2 February 2026 for its second reading.
Why the Change Was Necessary
The existing councillor conduct framework has long been criticised as slow and ineffective. Under the current system, misconduct matters have often taken years to resolve, with outcomes frequently described as little more than a “slap on the wrist” for councillors found to have breached their obligations. The NSW Government determined that relocating these matters to a superior court of record with demonstrated expertise in local government matters would provide faster, more consequential outcomes.
Minister for Local Government Ron Hoenig stated that the reforms “will cut through red tape, enable quicker action and stronger penalties against misbehaving councillors which has been sorely missing under current processes.” The Land and Environment Court already handles numerous local government matters including planning appeals and has specialist judges with deep knowledge of council operations.
KEY DATES:
- 14 October 2025 – Councillor Conduct Bill introduced to NSW Parliament
- 2 February 2026 – Bill is back before Parliament
Enhanced Penalties and Powers
The new framework significantly expands the penalties available for councillor misconduct. The Land and Environment Court will have the power to disqualify councillors for up to five years, impose substantial fines, order restitution, and suspend councillors pending the final hearing of proceedings where the Court considers this to be in the public interest. This immediate suspension power addresses a key gap in the current system where councillors could continue in office during lengthy tribunal processes.
Importantly, the Court will also have the power to order costs, including indemnity costs, where proceedings are found to have been commenced vexatiously. This provision aims to prevent the misuse of the conduct complaints system for political purposes while ensuring genuine misconduct matters receive proper attention.
Who Can Commence Proceedings
The Bill introduces a controlled approach to who can bring misconduct proceedings. Only “relevant persons” may commence proceedings, defined to include the Minister, senior State government officials, the Director of Public Prosecutions, ICAC, and any other person granted leave by the Court. This ensures that proceedings are brought by appropriate authorities rather than being used as a political tool between councillors or by disgruntled residents.
IMPLICATION: Councils should review their internal Code of Conduct processes, ensure councillors are trained on conduct obligations, and prepare for a more rigorous enforcement environment under the new regime.