Kalgoorlie, August 26, 2025 — The Shire of Coolgardie has been formally issued a show cause notice by Western Australia’s Local Government Minister, Hannah Beazley, requiring the embattled council to justify why it should not be suspended. The ultimatum sets a three-week deadline for the Shire to respond amid concerns over its mounting $27 million debt and financial instability.
Financial Turmoil Triggers Government Intervention
The Shire is grappling with a severe fiscal imbalance. Minister Beazley voiced deep concern about Coolgardie’s ability to regain financial stability, particularly given its limited ratepayer base, numbering only in the thousands. The $27 million debt poses a critical threat to local service delivery and long-term governance.
Councillor Tracey Rathbone, deputy shire president, defended the council’s recent progress, noting efforts over the past nine months to remedy the financial downturn. She also indicated ongoing discussions regarding a potential merger with the neighboring City of Kalgoorlie-Boulder, though stressed no formal decision has been made.
Moment of Reckoning: 21 Days to Respond
Following protocol under the Local Government Act, Coolgardie now has 21 days to present arguments against suspension. Minister Beazley emphasized that while suspension remains a possible outcome, it is not her immediate intention; rather, she is seeking assurances that governance and financial controls will be promptly restored.
This marks the second caution in recent months for the Shire—weeks earlier, the Auditor-General’s audit revealed serious governance failures, including a net loss exceeding $4.6 million for the year ending June 30, 2024, and liabilities exceeding assets by over $14.2 million. The audit also flagged questionable hiring practices and workplace cultural issues, prompting Minister Beazley to suggest consideration of a boundary adjustment with Kalgoorlie-Boulder.
What Lies Ahead for Coolgardie Council?
- Council Response: The Shire must deliver a robust, transparent plan to mitigate the financial and governance concerns raised in the show cause notice.
- Possible Suspension: Should the response fail to reassure the minister, suspension of the council may follow—potentially including commissioner appointments and mandatory training for councillors.
- Boundary Reform Talks: Merging with Kalgoorlie-Boulder remains a distinct possibility, contingent on cooperative discussions and election timing considerations.
- Sector-Wide Implications: With the recent Nedlands council dissolution and Port Hedland upheaval, this signals heightened scrutiny across regional WA‘s local government sector.
Key Details at a Glance:
- Show Cause Notice Issued By: Minister Hannah Beazley
- Debt Load: ~$27 million
- Response Window: 21 days
- Audit Findings: $4.6M loss, $14.2M net liabilities, cultural and staffing issues
- Possible Solutions: Training, commissioner oversight, merger talks
