Laws governing controls on NSW local councillors with links to property developers are "impotent, ineffective and dysfunctional" and do not adequately protect ratepayers, a budget estimates hearing has been told.
The hearing is looking into the NSW local government portfolio, with the minister responsible, Wendy Tuckerman, being quizzed by opposition MPs on Thursday.
Labor has focused on claims of improper property developer links to local councils and donations to council candidates.
Labor's Mark Buttigieg queried Ms Tuckerman about one local councillor he said incorrectly declared a property interest receiving a "slap on the wrist" and being allowed to continue to sit on council, following a multi-year review.
Another local councillor's husband ran an "end-to-end" property development business, but it was a situation Labor's Rose Jackson said did "not constitute technically a breach of the act".
A separate case, alleged by Mr Buttigieg, was a $5900 donation in 2016/17 from a property developer-linked group to Sutherland council candidates.
"The purpose of this ... is to show you that this legislation is impotent, ineffective and dysfunctional and doesn't protect the NSW ratepayer," Mr Buttigieg put to the minister.
Ms Tuckerman said she was working to bolster the framework around council misconduct and declarations.
"I have just announced that we will be doing random audits of all declarations made by councillors to try and strengthen and ensure that the community does have confidence in councillors that sit on council," she said.
Ms Tuckerman said her department was also looking at the backlog of investigations, noting "that has certainly been reviewed by the department and I'm pleased to say we have seen some improvement in that".
The hearing comes after NSW corruption watchdog probes this year into Sydney's Georges River Council and Hurstville City Council, and the City of Canada Bay Council.
