(1) If a person becomes a councillor while the person is a local government employee, the person is taken to have resigned as a local government employee on the day before the person becomes a councillor.
(2) A local government employee includes an employee of a type of entity prescribed under a regulation.
(3) However, a local government employee does not include a person who--
(a) is employed under a federally funded community development project for Aborigines or Torres Strait Islanders; or
(b) is a member of a class of employees that is prescribed under a regulation.