Regulation Review - IPART - NSW Government

2 Local government compliance and enforcement
functions
Regulatory functions under the Local Government Act 1993
The LG Act establishes councils, provides their governance framework and sets
out their core service, regulatory and other functions.
There are 2 main kinds of local government regulatory functions exercised by
councils within their area under the LG Act:
1. Various activities can only be carried out if the council gives its approval – eg,
the operation of a caravan park or a public car park; use of community land
for business or entertainment; management of waste; water supply, sewerage
and stormwater drainage work. 16 Some of these approvals may also be
granted as part of the development consent process under planning
legislation.
2. A council can order a person to do, or to stop doing, something – eg, order a
person to keep fewer animals on their premises; or orders in relation to
standards for hairdressers, beauty salons and mortuaries. Failure to obtain or
to comply with an approval and failure to comply with an order are offences
under the LG Act. 17
Regulatory functions under other State legislation
In addition to the LG Act, numerous other regulatory functions are conferred on
local government under other State legislation and associated regulations.
The Productivity Commission (the PC) identified approximately 50 laws in NSW
which impose a regulatory responsibility on local government. 18 Our
preliminary investigations, however, indicate this number may be greater.
Key areas where the State government has delegated regulatory roles and
responsibilities to local government are in the priority regulatory areas for this
review:
Planning – eg, development controls, development consents, certification of
complying developments, and change of use approvals.
Building and construction – eg, certification and compliance with building
standards, and fire safety requirements.
Environmental protection – eg, native vegetation, noxious weeds, waste
management, noise control, coastal protection, underground petroleum
storage systems, stormwater drainage, sewage and grey water systems,
contaminated land, and solid fuel heaters.
16 Local Government Act 1993, section 68.
17 Local Government Act 1993, Chapter 7 Introduction, sections 124 and 626-628.
18 Productivity Commission, Performance Benchmarking of Australian Business Regulation: The Role of
Local Government as Regulator, July 2012, Vol 2, Table F.1, p 573.
16 IPART Regulation Review