The Baird government is looking to accelerate council amalgamations, and could force them through before the September 2016 council elections.

The Government is introducing legislation to update the Local Government Act that will also include changes to employment conditions for council employees, new ethical standards for councillors, postal voting for local government elections and two-year terms for mayors elected by their council.

A leaked Office of Local Government briefing document, reported on by Fairfax Media, appears to lay out a plan for two tranches of amendments.

The changes also include “a new structural framework for local government”, aiming to promote “independent and sustainable councils”, to build “the capacity to deliver on local and regional needs”.

Insiders allegedly believe this is code for changes to force amalgamations.

NSW Minister for Local Government Paul Toole has denied that is the plan.

“The mooted changes to the Local Government Act contained in the ... briefing notes do not relate to council mergers,” a spokesperson told reporters.

The recent Independent Local Government Review Panel recommended Sydney's 41 councils should amalgamate into around 14 larger councils, but only a handful have voluntarily embraced the plan.

Most councils lodged proposals to the Independent Pricing and Regulatory Tribunal (IPART) to remain stand-alone.

IPART is now judging whether the councils are “fit for the future”, specifically looking at whether they have “scale and capacity” needed to survive.

It is expected that many councils would fail that test, and so some councils are wondering if the government will force mergers.

Currently, mergers – forced or voluntary – would be presented at a Boundaries Commission hearing.

This drags out the political pain for the Government no matter what it does, and also makes it difficult to get anything done before the September 2016 elections.

It leaves the Government in an awkward place, Opposition spokesperson on local government Peter Primrose said.

“The government will be attempting to consult with councils at the same time as trying to abolish some of them,” he told reporters.

The first set of changes to the act, which are meant to make councils function more efficiently, include mandatory internal performance audits, as well as external audits reported to the Auditor-General.

Mayoral terms are being extended in order to stop the rampant jostling for the top job, which usually starts immediately after a mayor is elected.

The leaked document allegedly includes plans to hold councillors to higher ethical standards; requiring them to swear an oath of office and also attend professional development programs throughout their tenure.

The Office of Local Government is reportedly looking at the possibility of performance-based contracts for senior staff, bringing in temporary employment up to four years, and making it easier to transfer staff.

Mr Primrose called the proposed changes “a neo-liberal employment agenda”, which he says will result in contracts for all council workers.

The legislation should be made public ahead of a consultation period expected late this year.