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Threshold amounts for significant business activities for 2013-14

Purpose

This bulletin is to advise councils of the threshold amounts for new Significant Business Activities which are to be employed to determine new type 1 or type 2 business activities for 2013-14 based on current expenditure for the 2012-13 financial year.

Background

Under the Local Government Regulation 2012 and the City of Brisbane Regulation 2012, a council must assess, as soon as possible after the budget meeting for the year, whether any businesses are type 1 or type 2 businesses. Councils are required to make this assessment using the financial information for the previous financial year that was presented at council's budget meeting.

Threshold amounts are stated in section 19 of the Local Government Regulation 2012 and section 16 of the City of Brisbane Regulation 2012.

To change these thresholds the Minister must consult with the LGAQ.

There is no change to these thresholds for 2013-14.

2013-14 thresholds

The threshold amounts for the purposes of section 19 of the Local Government Regulation 2012 for the 2013-14 financial year are as follows:

(a) for Type 1 Activities:
(i) for water and sewerage combined activities - $42,640,000; and
(ii) for other activities - $25,540,000
(b) for Type 2 Activities:
(i) for water and sewerage combined activities - $12,770,000; and
(ii) for other activities - $8,550,000

The threshold amounts for the purposes of section 16 of the City of Brisbane Regulation 2012 for the 2013-14 financial year are as follows:

(a) for Type 1 Activities - $25,540,000
(b) for Type 2 Activities - $8,550,000

In deciding whether an activity should be a type 1 or type 2 business activity for the 2013-14 financial year, local governments must consider the operating expenditure for the 2012-13 financial year less any depreciation included therein and any expenditure included therein to achieve competitive neutrality which is not actually incurred by the local government plus any loan redemption payments in that year.

Further information

Any further enquiries on this matter should be addressed to:

Ms Samantha Cieslar
Principal Project Officer
Department of Local Government, Community Recovery and Resilience
PO Box 15009
City East
Brisbane Qld 4002