The NSW Government says it will audit credit card use at local councils across the state.

The Government is cracking down in the wake of an ABC investigation that revealed a bill of over $500,000 at one outback shire.

Local Government Minister Gabrielle Upton says the audit will be coupled with “sweeping” reforms to strengthen checks and balances for credit card use.

The media investigation found more than $500,000 was billed to a credit card in Hay Shire Council general manager Allen Dwyer’s name, including $73,600 in cash advances, often in $200 amounts.

Ms Upton wants the Office of Local Government to formally investigate the council's “credit card expenditure and accounting practices”, and strengthen credit card usage guidelines.

“This package of measures will help ensure council credit cards are not abused and they have the right mechanisms in place to account for all expenditure and identify any irregularities,” Ms Upton said.

“It's simply not good enough that Hay Shire Council failed to ensure all credit card transactions were backed up by the appropriate documentation including receipts, especially when the spending exceeded half a million dollars of ratepayers' money.

“The community rightfully expects their local council to be responsible when it comes to spending their hard-earned ratepayer dollars.”