Perth Lord Mayor Lisa Scaffidi has led an almighty and expensive legal fight every step of the way in her long-running expenses scandal — but the State Administrative Tribunal (SAT) has given her a slap much harder than many in local government circles had predicted.

Key points: Lisa Scaffidi banned from holding a local government office for 18 months

Lisa Scaffidi banned from holding a local government office for 18 months Ruling comes after 45 "serious breaches" of the Local Government Act

Ruling comes after 45 "serious breaches" of the Local Government Act Deputy Mayor and outspoken Scaffidi critic James Limnios expected to step into the role

Cr Scaffidi faced possible fines, suspension or disqualification, but in the end the penalty handed down is likely worse than she would have imagined.

In a response on Twitter, she branded the penalty as "unduly severe".

The tribunal's ruling revealed Cr Scaffidi accepted that a penalty less than suspension would not be appropriate, while the State Solicitor's Office had pushed for an immediate six-month suspension.

Instead, Cr Scaffidi was disqualified from office for 18 months for failing to properly disclose gifts and travel, thereby committing multiple serious breaches of her reporting obligations under the Local Government Act.

The ruling makes it clear that deterrence, the need to ensure public confidence in local government and the fact Cr Scaffidi held a leadership role were major factors in the tribunal's decision to hand down the tough penalty.

"The need for general deterrence requires that those in leadership roles are penalised so as to ensure that those who occupy leadership positions comply with the Local Government Act and use their leadership position to encourage and assist others to comply," the tribunal said.

"There is a need to protect the public through general deterrence of other councillors from similar conduct."

Outside the hearing, Cr Scaffidi's lawyer Steven Penglis was asked if — in local government terms — it was the harshest penalty every handed down in Australia.

He responded by saying it was a "unique situation" and "one without precedent".

In its ruling, the tribunal said it was not satisfied Cr Scaffidi had any "genuine insight" into her conduct or any proper understanding of her statutory obligations.

"And is not satisfied that it can have any confidence that the Lord Mayor would comply withe her obligations in the future," the tribunal said.

For those reasons, it concluded a period of suspension was "simply inadequate" and it had no option but to disqualify Cr Scaffidi for a period of 12 months in regard to the breaches of the Act she admitted — with a further six-month disqualification imposed in respect of the remaining serious breaches.

Scaffidi a godsend for McGowan in a tough budget week

In May, the Tribunal found Cr Scaffidi committed 45 serious breaches of the Act by failing to properly disclose expenses, including a trip to the 2008 Beijing Olympics funded by BHP at a cost of more than $46,000.

But the saga actually started back in May 2015, when the Australian Federal Police referred Ms Scaffidi to the Corruption and Crime Commission after US investigators discovered the BHP trip as part of a wider probe into the firm's entertainment of foreign officials.

While the long-awaited SAT penalty is now known, the fight is not over. Cr Scaffidi confirmed she would be applying to the Supreme Court for a stay of penalty until her appeal can be heard.

This is likely to be before Thursday, when Cr Scaffidi's disqualification is set to take force.

For months, Premier Mark McGowan has been calling for Cr Scaffidi to step down as Lord Mayor — a call he repeated today — saying he has lost confidence in her over the expenses scandal.

On Thursday, his Treasurer Ben Wyatt will deliver his first state budget since Labor won office in March, and it is expected to be a tough sell given the red ink all over the books.

But much of the attention this week will likely be diverted to Cr Scaffidi, who indicated on Twitter she was not cowed by the penalty handed to her today, nor would she be intimidated by political opponents.

Loading

"I will continue to fight for what I consider to be a fair and just outcome in this matter, both for myself and for those who elected me," she said.

"In particular, I will not give in to those who wrongly seek to make this a political issue."

It may well be that if Cr Scaffidi continues to dominate the headlines this week, her woes could prove a very welcome distraction for the McGowan Government.