Moving from a prescriptive to a principles-based approach

The Local Government Act 1989 and its associated regulations prescribed many details about how councils could, among other things:

  • make decisions
  • conduct public consultation processes
  • provide notices of meetings
  • run meetings
  • make information available to the public.

Over time, it has become apparent this level of prescription is unnecessary for modern councils. The Local Government Act 2020 removes unnecessary regulatory and legislative prescriptions and enables councils to govern based on five principles.

The five principles below have guided the development of the Local Government Act 2020:

1. Community Engagement

This principle aims to ensure all Victorians have the opportunity to engage with their council on the future of their community. At a minimum, all councils must adopt and maintain a community engagement policy which must be used in the development of:

  • planning and financial management
  • community vision
  • council plan
  • financial plan.

Read more about the community engagement principle here - Community Engagement  (DOCX, 1491.13 KB)

2. Strategic Planning
The Local Government Act 2020 requires councils to develop an integrated, longer-term and transparent approach to planning that supports councillors in leading strategically, rather than focusing on operational issues.

This principle works together with the community engagement principle to ensure that communities are involved in strategic planning and decision making.

Read more about the strategic planning principle here - Strategic Planning  (DOCX, 1491.81 KB)

3. Financial Management

A significant percentage of a council’s revenue comes from rates, and the community has expectations that these rates will be used to deliver an array of services and infrastructure. It is vital that councils undertake responsible spending and investment that ensures financial, social and environmental sustainability.

The Local Government Act 2020 creates a legislative environment that embraces innovation, modern business practices, and microeconomic reform.

Read more about the financial management principle here - Financial Management  (DOCX, 1490.59 KB)

4. Public Transparency

Openness, accountability, and honesty are essential to build high levels of accountability and trust among citizens and enable fully informed engagement in the democratic process.

Councils are required to adopt and maintain a public transparency policy, which must be in line with underpinning principles in the Act.

Read more about the public transparency principle here - Public Transparency (DOCX, 1491.43 KB)

5. Service Performance

This principle ensures that councils deliver equitable, accessible, and good value services; and meet the needs of their diverse communities.

Read more about the service performance principle here - Service Performance (DOCX, 1490.55 KB)

Regulations in the Local Government Act 2020

The Local Government Act 2020 (the Act) provides a number of heads of power to make regulations.

As a general principle, while the Act provides for a number of heads of power, it does not mean that there is an intention to make regulations with respect to each of those heads of power in the Act.

The current intention is to make the following regulations in a timeframe that supports implementation under the Act:

  • Local Government (Electoral) Regulations
  • City of Melbourne (Electoral) Regulations
  • Local Government (Governance and Integrity) Regulations
  • Local Government (Planning and Reporting) Regulations
  • Library Purposes Trusts Regulations
  • Local Government (Long Service Leave) Regulations
  • Local Government (General Management) Regulations
  • Local Government (Land Information) Regulations

Ministerial Good Practice Guidelines

Under section 87 of the Act, the Minister for Local Government can issue Ministerial Good Practice Guidelines (MGPGs).  Compliance by a council with a relevant good practice guideline can be used as evidence that the Council has complied with the corresponding requirement under the Act or the regulations.

While MGPGs are not mandatory for councils (unlike regulations), in the spirit of having a principles-based Act, it is intended that MGPGs be developed where there is a clear need to support councils.

The Ministerial Good Practice Guidelines are listed below:

Ministerial Good Practice Guideline (MGPG-3) Virtual Meetings - effective from 2 September 2022

Minister's Good Practice Guidelines  MGPG-1: Virtual Meetings PDF, 135.6 KB

Ministerial Good Practice Guideline for Councils Engaging with Aboriginal Victorians

Note: The Local Government Act 1989 is being progressively repealed.

Regulations Framework