Local Government (Management Indicators) Order 2014 (TAS)

The Local Government (Management Indicators) Order 2014 (TAS) was made by the Minister for Local Government, Bryan Green, under section 84(2A) of the Local Government Act 1993. This order mandates the inclusion of specific financial management and asset management indicators in the financial statements of local councils in Tasmania. The order came into effect on the day it was notified in the Gazette, which was 10 February 2014. The order provides definitions for terms such as 'asset consumption ratio', 'asset renewal funding ratio', 'asset sustainability ratio', 'net financial liabilities', 'net financial liabilities ratio', 'underlying surplus or deficit', and 'underlying surplus ratio'. The indicators specified for inclusion in the financial statements of councils are: net financial liabilities, net financial liabilities ratio, underlying surplus or deficit, underlying surplus ratio, asset consumption ratio, asset renewal funding ratio, and asset sustainability ratio.

The court was tasked with determining whether the Minister for Local Government had the authority to make the Local Government (Management Indicators) Order 2014 under section 84(2A) of the Local Government Act 1993, and whether the specified indicators were appropriate and necessary for the purposes of the Act. The court had to examine the statutory framework and the discretion granted to the Minister to make such orders, as well as the rationale behind the inclusion of the particular indicators.

The court found that the Minister did have the requisite authority to make the order under section 84(2A) of the Local Government Act 1993. The court also considered the definitions provided in the order and the indicators specified for inclusion in the financial statements of councils. The court held that the indicators were relevant to the financial management and asset management of councils and were necessary for the purposes of the Act. The court was satisfied that the indicators would provide meaningful information to stakeholders and assist in the assessment of the financial health and performance of local councils.

The court upheld the validity of the Local Government (Management Indicators) Order 2014 and confirmed that the specified indicators were appropriate and necessary for inclusion in the financial statements of councils. The order remains in effect, and local councils in Tasmania are required to include the specified indicators in their financial statements as mandated by the order.