❓ A WA parliamentary question addresses the Shire of Coolgardie's financial difficulties, the Minister's response, and future monitoring. The Minister outlines the timeline of intervention and the metrics for assessing the Shire's progress.
AnsweredQoN 1590Legislative Assembly
QuestionView source ↗
I refer to the Shire of Coolgardie’s financial situation leading to a show cause notice from the Local Government Minister as to why it shouldn’t be suspended, and I ask: (a) When did the Minister become aware of financial concerns from the Shire of Coolgardie; (b) What was the timeline between becoming aware of the issues and finding solutions; (c) Why was the Shire threatened with a “boundary adjustment” before the Minister decided on the current outcome; and (d) What metrics will the Minister use to assess the Shire over the next 12 months before deciding on suspension?
AnswerView source ↗
Answered
17 February 2026
Responded by
Minister for Local Government
Response time
1 days
a) The Department of Local Government, Industry Regulation and Safety (LGIRS) undertakes ongoing, sector-wide monitoring of local governments’ financial management and governance. As part of these routine oversights processes, LGIRS identifies and assesses emerging risks and provides advice when significant concerns arise. In late December 2024, the Shire of Coolgardie’s (Shire’s) acting Chief Executive Officer advised that the Shire was experiencing ongoing financial challenges and required additional support.
b)
- January 2025: The former Department of Local Government, Sport and Cultural Industries (DLGSC) undertook analysis of its financial position.
- 26 August 2025: A Show Cause Notice was issued to the Shire under the Local Government Act 1995, requiring a response within 21 days (section 8.15B).
- 15 September 2025: The Shire submitted its response within the statutory timeframe and outlined steps within its Financial Recovery Plan.
- 10 October 2025: The Shire was advised that no order would be made to suspend; instead conditions were imposed, including financial management training for all members and regular reporting to DLGSC on implementation of the Financial Recovery Plan and Long-Term Financial Plan over the next 12 months.
c) The potential for the Shire to submit a request for a boundary adjustment was one of a number of potential solutions to addressing the Shire’s financial viability and significant governance issues.
d) The Shire is required to report regularly on the implementation of its Financial Recovery Plan and Long-Term Financial Plan.
Assessments will be based on financial position indicators such as income, cashflow, variances against financial projections, debt position, reserve balances and the delivery of capital works and strategic projects.
b)
- January 2025: The former Department of Local Government, Sport and Cultural Industries (DLGSC) undertook analysis of its financial position.
- 26 August 2025: A Show Cause Notice was issued to the Shire under the Local Government Act 1995, requiring a response within 21 days (section 8.15B).
- 15 September 2025: The Shire submitted its response within the statutory timeframe and outlined steps within its Financial Recovery Plan.
- 10 October 2025: The Shire was advised that no order would be made to suspend; instead conditions were imposed, including financial management training for all members and regular reporting to DLGSC on implementation of the Financial Recovery Plan and Long-Term Financial Plan over the next 12 months.
c) The potential for the Shire to submit a request for a boundary adjustment was one of a number of potential solutions to addressing the Shire’s financial viability and significant governance issues.
d) The Shire is required to report regularly on the implementation of its Financial Recovery Plan and Long-Term Financial Plan.
Assessments will be based on financial position indicators such as income, cashflow, variances against financial projections, debt position, reserve balances and the delivery of capital works and strategic projects.
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