Statutes Amendment (Local Government Elections Review) Bill

Second Reading

The Hon. K.J. MAHER (Deputy Premier, Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector, Special Minister of State) (17:57): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation and explanation of clauses inserted in Hansard without my reading them.

Leave granted.

The Bill I introduce today, the Statutes Amendment (Local Government Elections Review) Bill 2025, will amend the Local Government Act 1999, the Local Government (Elections)Act 1999 and the City of Adelaide Act 1998 to make a range of improvements to local government elections and participation in councils.

This Bill is the culmination of a significant amount of public consultation, both with the local government sector and the broader South Australian community over a five-month period.

At this point, I take the opportunity to acknowledge the work of the previous Local Government Minister, the Member for Stuart, who is widely renowned for his deep interest in the local government sector. Indeed, along with our regional communities and our regional roads, it's fair to say that local government is the Member for Stuart's passion.

At the then-Minister's request, the Office of Local Government conducted a statewide consultation to give the community an opportunity to provide feedback on ideas and suggestions on how communities can better engage with their councils through a council term and, particularly, at election time.

During the consultation period from 25 October 2023 to 28 March 2024, 92 submissions were received directly—including submissions from 32 of South Australia's 68 councils and a sector-wide submission from the Local Government Association—and 406 surveys were completed on YourSAy – containing individual 5,400 comments.

This demonstrates the significant interest that communities have in their local governments and this Bill is a result of the rich information provided from across South Australian communities. I thank all those who took the time to turn their minds to how community engagement with their local council could be improved.

A real challenge in the context of council elections is the ability for voters to understand who is running for council, what they stand for, and even what kind of people they are. In the context of an election where 1,256 candidates stood for 184 contested positions in 2022, it can be difficult for information about candidates to reach voters. Voters are very dependent on the candidate profiles that are included in every ballot pack to help them make the important decision about who will represent them at this local level for the next four years.

I have subsequently consulted with the sector on the bill.

Additionally, recent findings from the Court of Disputed Returns in relation to the Central Ward of the City of Adelaide focused on activities relating to non-citizen voters exercising their entitlement as residents of an area. It appeared that these city residents were targeted for both enrolment and for the use of their ballot papers.

Ultimately, these illegal practices resulted in the removal of four members from the City of Adelaide, and also eroded the confidence that voters have in the integrity of these elections.

This must be addressed.

The Bill therefore proposes that all voters in South Australian council elections must be enrolled on the House of Assembly roll for South Australia. This is a change that reflects wider community expectations of who should vote in elections for Australian governments (namely, Australian citizens). It will also be to be delivered in way that allows for the retention of the property franchise.

Voters in Federal and State elections are Australian citizens—simply to be resident in the area, as is the current requirement for enrolment on a council's voters roll – is not enough. Elections for councils should be consistent with this approach.

Voters who wish to use their property franchise entitlements must either apply to be placed onto the roll or, in the case of the City of Adelaide, are enrolled by the Council. This creation of the supplementary roll is a separate process to the automatic enrolment of all residential voters on the Australian electoral roll.

Groups and bodies corporate that express their voting rights in local government elections will be required to do so via the nomination of a natural person who is on the House of Assembly roll. That is, an Australian citizen.

Another critical matter for voters' information is the disclosure of campaign gifts and donations received by candidates. The Bill includes significant changes to the current system for campaign donations returns and disclosures that will both be simpler for candidates to manage; and require more active disclosure by —

Applying the same system to all candidates, rather than making a distinction between 'incumbent' and 'new' candidates.

Requiring all candidates to disclose donations received four months before the announcement of their candidacy or their nomination, whichever is sooner.

Requiring all donations of $500 or more between nomination and the close of voting to be disclosed within five days.

Removing the obligation for all candidates to lodge a 'nil return' during the election period, to simplify the administration of the system for both candidates and the Electoral Commission of South Australia.

Requiring all candidates to then lodge a 'summary return' – including a 'nil return' – 21 days after close of voting, as a final declaration of what they have – or have not – received.

Changing the consequence of members' non-compliance with these requirements to a suspension, rather than a loss of office, to ensure that members of councils have made this information available without burdening their community with an expensive supplementary election where they may have failed with their administrative tasks.

A system that is both easier to comply with, and that provides more information to voters when they need it most, is a much-needed improvement to an important part of elections.

The Bill also includes a requirement for councils to hold a public meeting to which all candidates for contested elections in its area are invited to attend and speak, unless a council makes a resolution not to do so in the context of their mandatory caretaker policies, and their principal member publishes the reasons why they have made this decision. This both makes it clear that councils can hold these events in the interests of providing good information to voters, and that they should at least seriously consider doing so.

The Bill includes an amendment to require councils to make a prescribed amount of funding available to all members to claim for expenditure on printing material that is necessary to support members' community engagement, but which cannot include election campaigning activities. This will mean that people can nominate to stand for their council with confidence that their ongoing engagement with their constituents will be supported, if they are elected.

The Bill also includes the ability to trial an additional method of voting – the establishment of 'pre-poll' locations where voters could be issued ballot papers and vote in person at these locations during the last week of the voting period – for a supplementary election over the next term of council. While this would require significant implementation if introduced for all councils, a trial will allow for the benefits of expanding methods of voting to be fully tested.

I also intend to amend the Local Government (Elections) Regulations 2025 to extend assisted (telephone) voting to all people with a disability, noting the successful use of this method to support voters with impaired vision.

Engaging people – both as candidates and voters – in elections is critical. However, ensuring the integrity of election processes is equally important, particularly at a time when there is greater focus on the security and integrity of our elections than ever before. A loss of trust in elections is very difficult, if not impossible, to restore once gone. That is why the Malinauskas Government is acting now to give every assurance that elections for South Australian councils are run fairly, and with the right framework in place.

Other measures to improve confidence in our local government elections in the Bill include the introduction of standards of conduct for scrutineers and offences with penalties for obstructing the exercising of electoral duties. The need to provide greater powers for electoral staff to manage the behaviour of scrutineers and other people who may interfere with election activities became apparent in the 2022 periodic elections, particularly in relation to the count for the elections for the City of Onkaparinga, where the behaviour of scrutineers and associated people required police attendance.

This is a recommendation from the Electoral Commissioner, who has noted in the 2022 Council Election Report that currently South Australia is the only jurisdiction that does not have prescriptive provisions around the behaviour of scrutineers, or the ability for electoral officers to remove scrutineers for disorderly behaviour. The clauses in the Bill that deliver this important change have been modelled on provisions in the Electoral (Miscellaneous) Amendment Act 2024, as the Electoral Commissioner has also recommended.

The Bill would also prohibit people and groups from misleading or deceiving electors in relation to how they should mark their ballot papers and/or exercise their vote, to bring council elections in line with similar rules in the Electoral Act 1985 and other election legislation across Australian jurisdictions.

Along with the improvements proposed in this Bill, I intend to make regulations that will require all candidates for council to declare if they have been the subject of an adverse finding from an independent integrity body, including the Behavioural Standards Panel and the Ombudsman in relation to their time as a council member. These findings speak directly to the way in which that person has discharged their duties as a council member to date and should be brought to voters' attention.

The Bill also includes a number of measures to improve the efficient delivery of local government elections. These include a requirement for the Electoral Commissioner to publish nominations for election as soon as practicable, to reduce instances of insufficient nominations in council elections.

The Bill will also ensure the roll is brought up to date three weeks after the roll close date and therefore prior to nominations opening, to ensure that the eligibility of people who nominate for election can be assessed efficiently.

Explanation of Clauses

Part 1—Preliminary

1—Short title

2—Commencement

These clauses are formal.

Part 2—Amendment of Local Government (Elections) Act 1999

3—Amendment of section 4—Preliminary

A definition of State elector (meaning a person who is enrolled as an elector for the House of Assembly) is inserted for the purposes of changing to voting provisions.

Another amendment is consequential.

4—Amendment of section 5—Periodic elections

Polling day is changed to the third to last business day before the second Saturday November in each periodic election year.

5—Amendment of section 6—Supplementary elections

These amendments are technical.

6—Amendment of section 7—Failure of election in certain cases

Provision is made in relation to the failure of an election in certain cases.

7—Amendment of section 8—Failure or avoidance of supplementary election

This amendment is technical.

8—Amendment of section 10—The returning officer and deputy returning officer

Provisions relating to nomination of deputy returning officers by councils are deleted.

9—Amendment of section 14—Qualifications for enrolment

These amendments relate to the addition of the requirement to be a State elector in respect of the entitlement to enrolment for certain persons or bodies.

10—Amendment of section 15—Voters roll

One amendment lengthens the timeframe for bringing the voters roll up to date after the closing date for an election. The other amendment relates to the provision of copies of the voters roll to nominated candidates.

11—Amendment of section 17—Entitlement to stand for election

This amendment is consequential on the insertion of section 55B into the Local Government Act 1999.

12—Amendment of section 21—Publication etc of valid nominations

The number of valid nominations received for an election must be kept up to date on the Internet.

13—Amendment of section 25—Uncontested elections

Provision is made in relation to the time for a declaration in relation to an uncontested election to be made.

14—Amendment of section 29—Ballot papers

Provision is made in relation to the time for the drawing of lots for the purposes of ballot papers.

15—Amendment of section 39—Issue of postal voting papers

This amendment is related to the addition of the requirement to be a State elector in respect of the entitlement to enrolment for certain persons or bodies.

16—Insertion of section 41B

New section 41B is inserted:

41B—Trial of in person voting before polling day for supplementary elections

The regulations may provide for 'pre-poll voting' for supplementary elections during a trial period.

17—Amendment of section 47—Arranging postal papers

This amendment is related to the addition of the requirement to be a State elector in respect of the entitlement to enrolment for certain persons or bodies.

18—Insertion of section 62A

New section 62A is inserted:

62A—Maintenance of order at and near certain places

A provision substantially similar to the equivalent provision in the Electoral Act 1985 is proposed to be inserted.

19—Insertion of section 66A

New section 66A is inserted:

66A—Prohibition of advocacy of forms of voting inconsistent with Act

2 provisions that are substantially similar to the equivalent provisions in the Electoral Act 1985 are proposed to be inserted.

20—Amendment of section 69A—Electoral Commissioner may lodge petition

This amendment is technical.

21—Substitution of sections 80 to 81B

Certain sections relating to campaign donation returns are substituted.

80—Preliminary

This section provides for interpretative matters.

81—Special returns for gifts during certain period

Candidates for election are required to lodge returns for gifts received during the special disclosure period.

81A—Return for all gifts received during disclosure period

Candidates for election are required to lodge a return by no later than 28 days after polling day for an election for all gifts received during the disclosure period.

22—Amendment of section 86—Failure to comply with Division

These amendments are related to the amendments concerning campaign donation returns.

23—Amendment of section 87—Public inspection of returns

This amendment is consequential.

24—Amendment of section 91A—Conduct of council during election period

This amendment deletes a spent provision.

25—Insertion of section 91B

New section 91B is inserted:

91B—Council to hold public meeting for general election except in certain circumstances

Councils are required to hold at least 1 meeting involving any candidates who wish to participate and members of the public prior to polling day for a general election, unless the council's caretaker policy provides otherwise in accordance with section 91B.

26—Amendment of section 93—Regulations

This amendment provides for the regulations to prescribe provisions of a savings or transitional nature.

Part 3—Amendment of Local Government Act 1999

27—Amendment of section 54—Casual vacancies

The amendments to section 54 are consequential on proposed new section 55B, which provides for a suspension for a member of a council who fails to submit a campaign donations return for all gifts received during the disclosure period for an election (if the failure continues for more than 1 months after the return is due).

28—Insertion of section 55B

New section 55B is inserted:

55B—Suspension of member for failure to submit certain returns

This section provides for a suspension for a member of a council who fails to submit a campaign donations return for all gifts received during the disclosure period for an election (if the failure continues for more than 1 months after the return is due).

29—Amendment of section 68—Register of Interests

Subsection (1b) is substituted for consistency with the equivalent provision in proposed section 55B.

30—Amendment of section 75—Material conflicts of interest

This amendment is consequential on the amendments relating to campaign donation returns.

31—Amendment of section 77—Reimbursement of expenses

This amendment provides for a member of a council to be reimbursed for expenses (not exceeding the amount prescribed by the regulations) incurred by the member in producing printed material (other than electoral material) necessary for engaging with the community in relation to local government matters.

32—Amendment of section 79—Register of allowances and benefits

This amendment is consequential.

33—Amendment of section 125A—Internal audit functions

This amendment is technical.

34—Amendment of section 226—Moveable signs

These amendments align the provisions relating to exhibiting a poster, notice or sign displaying electoral material relating to a local government election with the equivalent provisions for State elections.

35—Amendment of section 302B—Public health emergency

These amendments extend the provision to emergencies under the Emergency Management Act 2004 (in addition to public health emergencies).

36—Amendment of Schedule 4—Material to be included in annual report of council

This amendment is technical.

37—Amendment of Schedule 9—Suspension of members

This amendment is consequential.

Part 4—Amendment of City of Adelaide Act 1998

38—Amendment of section 4—Interpretation

The definitions of default person and eligible person are amended in connection with amendments to Schedule 1 that include the requirement to be a State elector in respect of the entitlement to enrolment for certain persons or bodies.

39—Amendment of section 25—Reimbursement of expenses

Section 25(1)—after paragraph (b) insert:

and

(c) reimbursement of expenses (not exceeding the amount prescribed by the regulations) incurred by the member in producing printed material (other than electoral material within the meaning of the Local Government (Elections) Act 1999) necessary for engaging with the community in relation to local government matters.

40—Amendment of section 38—Regulations

This amendment provides for the regulations to prescribe provisions of a savings or transitional nature.

41—Amendment of Schedule 1—Special provisions for elections and polls

The special provisions for elections and polls in Schedule 1 are amended so that they are consistent with the amendments to the Local Government (Elections) Act 1999 effected by the measure.

Debate adjourned on motion of Hon. N.J. Centofanti.

Second Reading

The Hon. K.J. MAHER (Deputy Premier, Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector, Special Minister of State) (17:58): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation and explanation of clauses inserted in Hansard without my reading them.

Leave granted.

The Retailer of Last Resort, or RoLR, scheme is a vital safety net designed to protect energy consumers and maintain uninterrupted energy supply in the event of a retailer's failure.

The scheme is overseen by the Australian Energy Regulator (AER), working alongside the Australian Energy Market Operator (AEMO) and energy retailers.

It transfers impacted customers to designated RoLRs in situations such as retailer insolvency, market suspension, or when a retailer stops operating. Historically, it has operated smoothly, with only four activations between 2012 and 2022, and no major interruptions to service.

However, Russia's invasion of Ukraine in early 2022 led to a sharp surge in wholesale electricity and gas prices, resulting in ten retailer failures and the first use of the AER's gas directions power. In response, in June 2022, Energy Ministers tasked the Australian Energy Market Commission with re-examining its earlier review of the scheme.

In August 2022, Energy Ministers agreed in principle with the AEMC's updated recommendations and committed to reforming the RoLR framework as part of wider initiatives to bolster retail market resilience during volatile periods and an unprecedented spike in RoLR events.

Following public consultation, Energy Ministers approved the amendments that are set out in the National Energy Retail Law (Retailer of Last Resort) Amendment Bill 2025 on 6 December 2024.

This Bill puts those reforms into action. It fortifies the scheme's operations, increases market durability, and improves the handling of retailer failures. It offers greater assurance to participants, lowers financial risks, and fosters competition while placing consumer protections at the forefront. The AER will maintain oversight, including ongoing monitoring and scope for additional changes based on further AEMC guidance.

I will now speak to these critical reforms in more detail.

The Bill enhances clarity in cost recovery arrangements. At present, designated RoLRs can face substantial costs such as acquiring extra energy or hedging contracts—with recovery decisions left to broad AER discretion. This uncertainty can complicate financing and cash flow, particularly in large-scale failures. The reforms amend the principles to allow recovery of all prudently incurred costs, including administrative, energy, and financing expenses. They define eligible cost types, introduce fast-tracked cost recovery applications within three months, restrict scheme alterations to significant errors, and clarify recovery via distributor payments. These adjustments will build retailer trust, simplify access to finance, and motivate more retailers to step up as RoLRs, thereby distributing risks and sustaining market competition over the long term.

The Bill also extends the AER's window for designating RoLRs to up to 72 hours following a RoLR event, moving away from reliance on pre-set default RoLRs. This extension enables the AER to select multiple or alternative RoLRs after the event, inform AEMO, and distribute customers more effectively. It also clarifies the role of default RoLRs while guaranteeing uninterrupted supply, reducing the chance of chain-reaction failures and maintaining market variety by preventing customers from clustering with a handful of large retailers.

The Bill amends AEMO's credit support demands by establishing a one-week grace period for designated RoLRs, followed by gradual increases over four weeks, to account fully for the added customer load. Current requirements for swift increases can pressure retailers during unstable times, risking suspensions. Amendments to the National Electricity Law (NEL) and Rules (NER) permit the Minister to make initial rules to implement this phased approach, striking a balance between RoLR responsibilities and the risks to generator payments. This will encourage involvement, enable precise credit adjustments as customers transition, and ease immediate financing pressures.

The Bill also eliminates overly rigid language in RoLR plan requirements, granting the AER more leeway in crafting, upholding, and implementing these plans. Such plans detail event procedures and exercises for participants, but strict timelines presently hinder flexibility. These minor revisions will improve efficiency for everyone, aiding better preparation without undue restrictions.

The Bill permits RoLRs to provide transferred customers with a 'designated contract', based on the terms and conditions of a market retail contracts (MRCs). This reform provides an alternative to the RoLR deemed retail arrangements and has the goal of attracting wider participation and offering customers more affordable, competitive options. Transferred customers currently default to deemed retail arrangements equivalent to SRCs, which can be more expensive than market alternatives. Retailers may now inform the AER if it is willing to transfer customers on to a designated contract, ensuring these contracts meet core safeguards:

Contain the same terms and conditions as a market retail contract,

Prices not exceeding the RoLR's standing offer prices,

No price increase for the first three months,

No exit fees for breaking the contract during the first three months, and

Adherence to NERL and NERR standards.

Most importantly, the reforms ensure a small customer transferred to the designated RoLR's designated contract will not be in a worse position than if the customer had been transferred to the registered RoLR's standard retail contract.

Explicit informed consent is not required in relation to the designated contract. The intent of the RoLR scheme is to avoid interruption to customer supply by having pre-established contractual arrangements. The designated contract must be published on the RoLR's website.

The AER will evaluate and oversee these requirements through guidelines, mandating records and follow-up communications. After three months, prices may increase if customers are properly notified via best endeavours, in line with the AER's Better Bills guidelines to promote engagement. This approach balances benefits for consumers with incentives for retailers, lowering obstacles to joining the scheme.

Finally, the Bill adjusts the deadline for responding to AER directions on gas supply and pipeline capacity from 'immediate' to within 24 hours of the RoLR notice. Current requirements lack clear enforceability, creating compliance issues. This modification enhances precision and feasibility, aligning with the extended designation timeframe without compromising supply.

I commend the Bill to members.

Explanation of Clauses

Part 1—Preliminary

1—Short title

2—Commencement

3—Amendment provision

These clauses are formal.

Part 2—Amendment of National Energy Retail Law

4—Amendment of section 132—Designation of registered RoLR for RoLR event

This amendment relates to the designation of a registered RoLR for a RoLR event.

5—Amendment of section 135—AER RoLR Guidelines

This amendment adds an additional matter that the AER RoLR Guidelines must specify.

6—Amendment of section 136—Issue of RoLR notice

This amendment includes another requirement for a RoLR notice.

7—Amendment of section 137—RoLR notice—direction for gas

This amendment includes a requirement connected with a direction for gas.

8—Insertion of sections 148A to 148C

New sections 148A to 148C are inserted:

148A—Designated contract for RoLR

This section relates to designated contracts for RoLRs relating to transferring small customers.

148B—Transfer of customers to designated RoLR with designated contract

This section includes provisions relating to the transfer of customers to a designated RoLR with designated contracts.

148C—Keeping records about, and giving information to, transferred customers

This section relates to requirements for keeping records about, and giving information to, transferred customers.

9—Amendment of section 163—Contents of RoLR plans

These amendments are technical or consequential.

10—Amendment of section 166—RoLR cost recovery schemes

Additional provisions are included in relation to RoLR cost recovery schemes.

11—Amendment of section 167—RoLR cost recovery scheme distributor payment determination

This amendment provides that a RoLR cost recovery scheme distributor payment determination may involve distributors making payments to satisfy the full costs of the scheme.

12—Amendment of section 168—Amendment of schemes and determinations

These amendments make provision in relation to the amendment of schemes and determinations.

13—Amendment of Schedule 1—Savings and transitionals

Savings and transitional provisions are inserted for the purposes of the measure.

Schedule 1—Related amendments to National Electricity Law

1—Amendment of section 2—Definitions

Certain definitions are inserted for the purposes of the measure.

2—Amendment of section 6—Ministers of participating jurisdictions

The defined term South Australian Minister is substituted into this provision.

3—Amendment of heading to Part 7, Division 2, Subdivision 1

This amendment is consequential.

4—Insertion of section 90EH

New section 90EH is inserted:

90EH—South Australian Minister to make initial Rules relating to credit support for RoLR events

This section provides for the South Australian Minister to make initial Rules relating to credit support for RoLR events.

5—Amendment of section 90F—South Australian Minister may make Rules on recommendation of MCE and Energy Security Board

The defined term South Australian Minister is substituted into this provision.

Debate adjourned on motion of Hon. F. Pangallo.