Regulation 19D: legislative reform update: What it means for members

Risk Matters - Winter 2026

Recent reforms to the Local Government Act 1995 (WA) have introduced Regulation 19D limiting the use of ‘insurance’ in certain circumstances, to indemnify elected members. Since these changes were announced, we have received regular questions from members about what can and cannot be funded or insured for when legal issues arise.

To help reduce uncertainty and support consistent decision- making, we have prepared a practical FAQ guide for local governments, addressing both the impact of regulation 19D and clarifying protections for Audit, Risk and Improvement Committee (ARIC) members.

In practice, the changes introduced via regulation 19D are targeted. The FAQ explains that councils can generally still fund or ‘insure’ legal representation in many situations, depending on the circumstances. The key point is that each matter needs to be considered carefully against the legislative constraints.

The FAQ also clarifies that ARIC members are covered under the various liability protections when a claim or allegation is made against them because of an act, error, omission or decision made while performing their official functions.

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It’s also important to note that councillors and ARIC members are not employees of the local government when acting in those roles. This means they are not covered by local government workers’ compensation in the same way employees are.

The guide explains the impact of the reforms in simple and concise language and clarifies where legislative limits may apply to the use of council resources (including insurance) in connection with specific legal matters.

For local governments, the overall focus remains the same: maintain strong governance foundations, reduce the likelihood of disputes escalating, and ensure decisions about indemnity and support are made transparently.

The FAQ reinforces these practical priorities:

  • Invest in induction and ongoing capability building for councillors and committee members.
  • Use established internal processes to resolve issues early where appropriate (for example, governance pathways and dispute-resolution mechanisms).
  • Ensure any council decisions to indemnify are clear, documented and aligned with current legislative constraints.

As part of implementation, relevant protection wordings have been updated to align with the statutory prohibitions arising from these reforms. These changes took effect from 30 June 2026 at 4pm WST. For more information, please contact your account manager.

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