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The NSW Government has quietly overhauled the employment framework for council executives, following revelations that many unelected local government chiefs are earning more than Members of Parliament.
An Australian Financial Review investigation dated 5 November, revealed that some Local Council general managers are paid more than $500,000 a year exceeding the salaries of cabinet ministers and even the Premier. The news has struck a nerve with ratepayers, who have endured years of rising council rates, stalled service delivery, and mounting frustration over transparency and performance.
Legislation Targets “Senior Staff” Contracts
In response, the NSW Parliament passed the Local Government Amendment (Employment Arrangements) Act 2024, stripping councils of the special employment category known as “senior staff.”
Under the new law, only the general manager remains on a performance-based contract, while other senior executives are to be employed under the NSW Local Government (State) Award 2023 or equivalent enterprise agreements.
Existing contracts will continue until they expire, but senior managers now have the right to request a transition to award conditions, a request that councils cannot unreasonably refuse.
The move is aimed at enhancing accountability and ensuring consistency with broader public sector employment standards. It also removes the council’s governing body (mayor and councillors) from direct involvement in appointing or dismissing senior executives other than the general manager, tightening oversight and reducing the scope for political influence or patronage appointments.
Minister Backs Public Concern
Minister for Local Government Ron Hoenig is quoted in AFR the public was right to be concerned about inflated executive pay in local government. “The government recognises there is understandable community concern about the amounts being paid to General Managers"
His remarks follow mounting public pressure for councils to justify six-figure salaries amid declining service standards and infrastructure backlogs across regional NSW.
What It Means for the Hawkesbury
In Hawkesbury the General Manager receives approximately $370,000 per year, more money that our Local Windsor Magistrate on about $366,050 and much more than our Federal MP Susan Templeman on a base salary of $233,660 and State MP Robyn Preston on approximately $172,576.
In the Hawkesbury, ratepayers are watching closely. With several senior positions currently filled under contract, the reforms could reshape council management structures and create a more stable and transparent staffing framework.
Local business advocates say it’s a step in the right direction. Hawkesbury Business Group President Phil Bamford said the change “brings local government back in line with community expectations.”
“For years we’ve seen senior executives on private-sector pay packets with little accountability for outcomes,” Mr Bamford said. “Aligning them with the Local Government Award restores fairness and puts the focus where it belongs — on delivering for residents and small businesses.”
However, questions remain over how quickly existing contracts will be phased out, and whether the new framework will genuinely curtail executive excess.
Call for Transparency
Community groups are urging councils to disclose executive remuneration in annual reports including comparisons to parliamentary and senior public service salaries to help residents see where their rates go.
The Hawkesbury Gazette has contacted Hawkesbury City Council for comment on how many of its senior managers are currently on contracts and whether any have opted to move to award-based employment.
A Step Toward Accountability
While the reform doesn’t cap general manager salaries, the highest-paid role in local government remains under contract, it does signal a shift toward tighter governance and fairer employment practices across NSW councils.
For communities that have long demanded transparency, it’s a welcome start. For unelected executives accustomed to private-sector privileges, it’s a wake-up call.
