Structural reform in the government sectors in Australia all have common themes of trying to make them work better to meet the challenges of a changing world. Structural reforms in Local Government in the States (other than the Northern Territory) have occurred to largely bring about ‘structural efficiencies’. These efficiencies have allegedly been achieved largely by amalgamating Councils and forming larger organizations with greater financial capacity.

Amongst other things, amalgamations of Councils are designed to:
- bring about economies of scale and efficiency savings;
- provide capacity to do more by employing more qualified and experienced personnel;
- lower Council administration costs; and
- ensure Councils have more of a ‘regional’ rather than just a ‘local’ focus.

Local Governments throughout Australia have steadily declined over the past century from about 1100 in 1910 to about 700 in 2003. (In New Zealand they have reduced from about 600 to now only number about 70). Throughout this time in Australia, Local Governments have grown in size and perform more functions than in the past.

State and Commonwealth Governments prefer Local Governments to amalgamate more so than Local Government. Local Governments prefer being ‘local democracies’, that is, the claim of being responsive, accessible, and representative. The debate over structural reform in Local Government in Australia often revolves around ‘structural efficiency’ versus ‘local democracy’.

There are many lessons to be learnt for Indigenous Governance in the Northern Territory from the structural reforms in Local Government that have occurred interstate. Indeed, the very nature of these reforms are likely to have similar impacts in the Northern Territory particularly in view of recent policies of both the Territory Government and the Aboriginal and Torres Strait Islander Commission. There are also current reviews at Commonwealth, State and Territory levels that could introduce additional reforms. The trend towards larger organisations with capacity, budget and professional personnel seems inevitable.