Local Government Association investigates tripling its spending on board member fees

THE Local Government Association wants to triple the ratepayer-funded allowances of its board members, at the same time as dodging its payroll tax bill.

THE Local Government Association wants to triple the ratepayer-funded allowances of its board members, at the same time as dodging its payroll tax bill.

The association is investigating spending as much as $240,000 a year on board member fees, up from $76,000.

It has also asked the State Government for a payroll tax exemption – a move that would save the association about $192,000 a year.

LGA public affairs executive director Lisa Teburea would not comment on how much each board member would receive a year.

However, she said current allowances did not reflect their “expertise and contributions”.

LGA president Lorraine Rosenberg, who finishes her two-year term in October and would not share in any potential pay rise, receives about $48,000 a year.

LGA President Lorraine Rosenberg will finish her term in October so will not share in any potential pay rise. Picture: Matt Turner

The immediate past president and four vice presidents receive $4291 a year, while the remaining 12 board members are paid $100 per meeting.

The board meets about six times a year.

Ms Teburea said it was “timely” to review the fees ahead of setting up a new “skills-based” board in October.

The existing 18-person board will be dissolved and replaced with a new 10-member “Board of Directors”, made up of metropolitan and regional elected members with business and governance experience.

Cartoon: Jos Valdman

“For many years LGA board members have received as little as $100 a meeting – this doesn’t reflect the time involved in preparing for and attending meetings, or recognise their expertise and contributions,” Ms Teburea said.

“The LGA is responsible for delivering millions of dollars in programs to councils and communities, often in partnership with the State Government.

“It’s important that we’re able to attract and retain mayors and councillors with appropriate governance and business experience to our board.”

Any increases would be scrutinised by the LGA’s independent audit committee before being submitted for board approval.

The proposal comes after The Advertiser reported the LGA spent $175,000 to oppose the Liberals’ rate-capping policy in the lead up to the March state election.

Local Government Minister Stephan Knoll said the proposed pay rises strengthened the case for rate capping.

“The LGA needs to justify why it believes its board members effectively deserve a pay rise overnight,” Mr Knoll said. “I don’t think this increase to LGA board fees passes the pub test.”

The LGA declined to comment on its application to avoid paying payroll tax while it was being assessed. It has budgeted nearly $5 million for employee costs in 2018-19.

In 2015, Business SA applied for payroll tax exemption arguing it was a “charity”, but the bid was rejected in the Supreme Court last year.