
NSW Local Government Minister wants to close election loophole

Image: Deputy Mayor Phillipa Scott (left), cafe owner Maurice Portelli (centre) and Mayor Darcy Byrne (right) at the opening of the Leichhardt Municipal cafe in June 2021. Photo: Facebook/Darcy Byrne
By WENDY BACON
The NSW Minister for Local government Wendy Tuckerman is considering amending the NSW Local Government act to close a loophole used by Inner West Labor Councillor Zoi Tsardoulias to get elected in an LGA where she neither lives or pays rates.
A spokesperson for the Minister said that the government would take Office of Local Government advice on the amendment before the next local government election.
Tuckerman’s move was in response to a letter from Greens spokesperson for Local government and corruption and Balmain MP Jamie Parker drawing the Minister’s attention to City Hub’s investigation into an obscure section in the NSW Local government act which has been interpreted as allowing companies that hold more than one rateable lease to nominate a person to represent them on the non-residential roll who has no connection with the company. This loophole (Section 272 4A) contrasts with a section in the City of Sydney Act which only allows companies to nominate someone who is an office holder of the company.

Parker wrote that he was concerned that the section “seemingly permits businesses that occupy more than one property to nominate a third-party with no connection to the local area to enrol and nominate to be a Councillor. In my view, local councillors should have a strong connection to the local government area that they represent. The rules that control these nominations are otherwise strict to keep local government local. Do you think it is appropriate to businesses be permitted to nominate individuals with no connection to the local community to nominate as a candidate for local government?”
In October, Minister Tuckerman responded that “the government agrees that Councillors should have a connection to the areas they are elected to represent and will consider this issue further prior to the next local government elections.”
Greens and Independent Councillors support amendment to close loophole
There is substantial support on the Inner West Council for the amendment.
Five Inner West Greens Councillors -Liz Atkins, Kobi Shetty, Marghanita Da Cruz, Dylan Griffiths and Justine Langford -agree that the Act should be amended. In response to questions, they told City Hub, “As it stands, the NSW Local Government Act has a loophole which undermines local democracy. We support Jamie Parker MP’s call for this to change.”
Long term Independent Councillor John Stamolis, who was one of the first to speak out about how shocked he was to find that you could get elected to Council without being a resident or ratepayer in the area said, “Any rule which permits a person to be elected to a Council in this way is undemocratic and needs to change. Everyone I speak with wants this undemocratic rule abolished. It undermines local democracy and it is essential that the NSW Electoral Commission and Office of Local Government take action now.”

Independent Councillor Pauline Lockie said, “I think most people expect their elected representatives to have a connection with the area they represent, especially at local government level, and to be transparent about that connection.”
How the loophole works
There are two local government electoral rolls in NSW. The main roll is the regular residential electoral roll.. The second is a non-residential role of rate payers who want to vote. These can be individuals or companies that own or lease rateable land.
There are five wards in the Inner West LGA, one of which is Leichhardt, another is Marrickville. To nominate as a Councillor in a ward, you need to be on the residential or non-residential roll in the LGA. Around June last year, Leichhardt Municipal Cafe owner Maurice Portelli was approached by a ‘friend’ to nominate Cr Tsardoulias onto the roll although she had no formal connection with his cafe.
He declined to name the friend but said that he agreed to the request. The Labor party then nominated Cr Tsardoulias to stand on its Marrickville ward ticket in the local government elections in December 2021. With a very narrow margin of 77 votes, her successful election delivered a majority of 8 Labor Councillors to 7 Greens and Independents.
Few people are aware of Section 271 Part 4A to get a roll. It is not promoted on the Inner West Council’s election page. Cr Tsardoulias’ connection to the recently opened cafe remained hidden as she did not publicly disclosed it before the 2021 election or in her first disclosure of interests signed after the election.
City Hub does not suggest Cr Tsardoulias has acted unlawfully. In response to questions earlier in the year, she told City Hub, “I take my responsibilities very seriously and continue to undertake my obligations under the Act in good faith. I have sought legal advice from a suitably qualified solicitor and am confident I have met both my obligations in declaring interests in my annual return of disclosure and the requirements to nominate for and be elected to public office.”
Councillor Tsardoulias reveals Leichhardt cafe nomination
