This paper examines the separate and combined effects of transformational leadership behaviour and social processes of leadership on key organisational outcomes within Australian local councils. A survey research methodology was used to gather quantitative data from employees from nine local councils. Data were analysed using Item clustering analysis for scale construction. Hierarchical multiple regression analysis was employed to test the proposed conceptual framework. The study found that transformational leadership predicted performance outcomes, collective efficacy/outcomes expectancies and organisational commitment. Social processes of leadership predicted performance outcomes, collective efficacy/outcomes expectancies and organisational citizenship behaviours. These results indicate that by practising aspects of transformational leadership such as articulating clear standards and expectations for performance and showing recognition to work unit members for specific task or goal achievements, work unit leaders may establish a foundation that later leads to higher performance outcomes. Furthermore, promoting aspects of social processes of leadership such as communication, enhancing adaptability and resolving uncertainties may lead to greater clarification and subsequent higher performance outcomes.