The 2013 event was cancelled after funding could not be secured with a major sponsor because of the introduction of an unacceptable insurance indemnities and releases clause.
Shire chief executive Jonathan Throssell said the council worked closely with WA Tourism Commission on options for the clause, which would have hurt the broader local government sector.
Mr Throssell said the clause had now been amended to a form that was acceptable to all parties.
But the shire had resolved not to organise another Truffle Festival at this stage.
One of the reasons for the decision is the likelihood that the shire will be swept up in Perth’s local government amalgamations.
‘Amalgamation may present new opportunities to brand the Mundaring Truffle Festival with the shire and City of Swan,’ Mr Throssell said.
‘So, while the shire is not planning a 2014 festival, we will discuss the opportunity for such an event with City of Swan.
‘We are also working with other agencies to share our knowledge and experiences as organisers of the festival.’
Mr Throssell said the new insurance indemnity clause for events was now conditional and included such elements as how liability could arise, limitations as to liability, proportional liability and exclusions to liability.
‘In raising these concerns, the shire has initiated a change in event funding contracts with WA Tourism Commission, which now opens the way for us to again seek funding without exposure to unacceptable levels of risk,’ he said.
The first Mundaring Truffle Festival was held in 2007 as a small community event.
Since then, it has achieved international acclaim and in 2012 was named as one of the top five truffle festivals in the world.