QueenslandCityofBrisbaneAct1924CityofBrisbaneRegulation2004Reprinted as in force on 1 September
2004(regulation not amended up to this
date)Reprint No. 1This reprint is
prepared bythe Office of the Queensland Parliamentary
CounselWarning—This reprint is not an authorised
copyNOT FURTHER AMENDEDLAST REPRINT
BEFORE REPEALSee 2010 Act No. 23 s 253
Information about this reprintThis
regulation is reprinted as at 1 September 2004.See list of
legislation for any uncommenced amendments.This page is
specific to this reprint. A table of reprints is included in the
endnotes.Also see endnotes for information about when
provisions commenced.Dates shown on reprintsReprints dated at last amendmentAll
reprints produced on or after 1 July 2002, hardcopy and
electronic, are dated as at the last date of amendment. Previously
reprints weredated as at the date of publication. If a
hard copy reprint is dated earlier than an electronicversion published before 1 July 2002, it
means the legislation was not further amendedand the reprint
date is the commencement of the last amendment.If the date of a
hard copy reprint is the same as the date shown for an electronic
versionpreviously published, it merely means that
the electronic version was published before thehard copy version.
Also, any revised edition of the previously published electronic
versionwill have the same date as that
version.
s15s4City
of Brisbane Regulation 2004Part 1Preliminary1Short
titleThisregulationmaybecitedastheCityofBrisbaneRegulation
2004.2CommencementThis regulation
commences on 1 September 2004.3DictionaryThe dictionary in
schedule 2 defines particular words used inthis
regulation.Part 2Financial
managementstandardsDivision 1Revenue policies, revenuestatements and annual financialstatements—Act, s 127(1)4Revenue policy(1)This
section prescribes financial management standards for arevenue policy, for a financial year,
prepared and adopted bythe council under section 106A1of the Act.(2)Therevenuepolicymustincludedetailsoftheprinciplesapplied by the council for the financial
year for each of thefollowing—(a)making and levying rates and charges;1Section 106A (Preparation and adoption
of revenue policy) of the ActSee also section
106B (Requirements and content of revenue policy) of the
Act.
s56s5City
of Brisbane Regulation 2004(b)exercising its
powers to grant rebates and concessions;(c)recovery of unpaid amounts of rates and
charges.5Revenue statement(1)This
section prescribes financial management standards for arevenue statement, for a financial year,
adopted by the councilunder section 109A2of
the Act.(2)The revenue
statement must include the following informationfor
the financial year—(a)anoutlineandexplanationoftherevenueraisingmeasures adopted, including an outline and
explanationof—(i)the rates and
charges to be made and levied in thefinancial year;
and(ii)therebatesandconcessionstobegrantedinthefinancial year;(b)whether the council has made a resolution
limiting theincreases in rates and charges;(c)theextenttowhichphysicalandsocialinfrastructurecosts for new
development are to be funded by chargesfor the
development;(d)whether the operating capability of
the council is to bemaintained,increasedordecreasedand,ifitistobeincreased
ordecreased, the extent to which it istobeincreased or
decreased;(e)whether depreciation and other
non-cash expenses are tobe fully funded.2Section 109A (Adoption of revenue statement)
of the ActSee also section 109B (Requirements and
content of revenue statement) of the Act.
s67s6City
of Brisbane Regulation 20046Annual financial
statements(1)Thissectionprescribesfinancialmanagementstandardsforthecouncil’sfinancialstatements,forafinancialyear,prepared under section 1163of the Act.(2)The
annual financial statements must—(a)takentogether,effectivelycompriseageneralpurposefinancial report; and(b)comply with the accounting
requirements.(3)The annual financial statements for a
financial year may beprepared for a period—(a)starting on the day after the date to
which the council’sfinancial statements for the previous
financial year wereprepared; and(b)ending on a day within 2 weeks before 30
June of thefinancial year.(4)If
financial statements are prepared under subsection (3), thestatements—(a)are
taken to be prepared for the financial year; and(b)must show—(i)the
date to which the statements are prepared; and(ii)in
the title of the statements, the period for whichthe
statements are prepared.(5)In this
section—accounting requirementsmeans—(a)the Australian Accounting Standards;
and(b)abstractsissuedbytheurgentissuesgroupoftheAustralian
Accounting Standards Board.43Section 116 (Preparation of annual
financial statements) of the Act4Onthecommencementofthissection,theabstractscouldbeviewedontheAustralian Accounting Standards
Board’s website at <www.aasb.com.au>.
s78s9City
of Brisbane Regulation 2004Division 2Exemption to open competition forcontracts and tendering—Act,s
42A(1)(a)7Exemption to open competition(1)Thisdivisionprescribes,forsection42A(1)(a)5oftheAct,financial management standards for the
making of contractsunder an exemption to open
competition.(2)A contract may be made under the
exemption if the contract isentered
into—(a)under a standing offer arrangement or
preferred supplierarrangement; or(b)with
a supplier from a register of pre-qualified suppliers;or(c)under an LGA
arrangement.8Requirements for establishing a
standing offerarrangement or preferred supplier
arrangementThecouncilmayestablishastandingofferarrangementorpreferred supplier arrangement only
if—(a)thesupplyofgoodsorservicesisneededinlargevolumes or
frequently; and(b)the council is able to obtain better
value for money byaggregating demand for the goods or services
needed;and(c)the goods or
services needed can be stated in terms thatwould be well
understood in the industry concerned.9Requirements for establishing a register of
pre-qualifiedsuppliersThe council may
establish a register of pre-qualified suppliersof particular
goods or services only if—5Section 42A
(Exceptions to the requirement for tenders or quotations) of the
Act
s
109s 11City of Brisbane
Regulation 2004(a)the preparation and evaluation of
invitations each timethe goods or services are needed would
be costly; or(b)the capability or financial capacity
of the supplier of thegoods or services is critical;
or(c)the supply of the goods or services
involves significantsecurity considerations; or(d)a precondition of an offer to contract
for the goods orservicesiscompliancewithparticularstandardsorconditions decided by the council;
or(e)theabilityoflocalbusinesstosupplythegoodsorservices needs to be found out or
developed.10Procedure for establishing purchasing
arrangements(1)Thecouncilmustinvitepersonstotenderifitproposestoestablish a purchasing arrangement.(2)The invitation must—(a)be published, at least 7 days before
the establishing ofthe arrangement, in a newspaper circulating
in the city;and(b)state the
purchasing arrangement for which the person isinvited to
tender.(3)The council must ensure there is
provision for the evaluationof the purchasing
arrangement including, for example, removalof a person from
the arrangement because of the person’s poorperformance of a
contract entered into under the arrangement.(4)Thecouncilmayestablishapurchasingarrangementforlongerthan2
yearsonlyifsatisfiedbettervaluewillbeachieved by
entering into a longer arrangement.11Entering into contracts under LGA
arrangementsForenteringintoacontractunderanLGAarrangement,areferenceinthearrangementtoalocalgovernmentisareference to the
council.
s
1210s 14City of Brisbane
Regulation 2004Part 3Full cost
pricingDivision 1Preliminary12Object of pt 3Theobjectofthispartistomakefinancialmanagementstandards,undersection127(2)(b)oftheAct,aboutrequirementsforfullcostpricingandtheirapplicationtosignificant business activities of the
council under chapter 8,part 56of
the Local Government Act.13Application of pt
3This part applies to the implementation of
full cost pricing forthecouncil’ssignificantbusinessactivitiesunderchapter8,part
5 of the Local Government Act.14Summary of matters affecting full cost
pricingIn summary, the following are the matters
affecting full costpricing—(a)the
relevant pricing provisions;(b)theprovisionindivision2aboutthetreatmentofcommunity service obligations;(c)the provisions in the Local Government
Act about theeliminationof,ortakingintoaccount,advantagesanddisadvantages of public
ownership;7(d)the provisions in
division 3 about financial reporting.6Chapter 8 (National competition reform of
significant business activities), part 5(Full cost
pricing for significant business activities) of the Local
Government Act7See section 568(2) of the Local
Government Act.
s
1511s 16City of Brisbane
Regulation 2004Division 2Treatment of
community serviceobligations15Extra
cost for community service obligations to betreated as
revenue(1)This section applies if community
service obligations for anactivity are carried out as part of
the activity.(2)For deciding charges for goods or
services provided as part ofthe activity, the
amount mentioned in subsection (3) must betreated as
revenue for the activity.(3)For subsection
(2), the amount is the cost of carrying out theobligationslessanyrevenuearisingfromcarryingouttheobligations.Division 3Financial reporting16Statement in budget about significant
business activitiesto which full cost pricing applies(1)Each budget of the council must
include a statement about itssignificantbusinessactivitiestowhichfullcostpricingapplies.(2)The statement must, for each
activity—(a)show the estimated revenues;
and(b)showtheestimatedexpenses,includingallitemsrequired to be
taken into account for the relevant pricingprovisions other
than return on capital; and(c)include the
estimated surplus or deficit for the financialyear; and(d)include a description of the nature of
community serviceobligations to be provided.(3)The statement must disclose each of
the following items, foreach activity, separately as estimated
revenues—(a)estimatedrevenueforservicestobeprovidedbytheactivity to persons other than the
council;
s
1712s 17City of Brisbane
Regulation 2004(b)estimatedrevenueforservicestobeprovidedtothecouncil by the activity;(c)the estimated cost of, less any
estimated revenue arisingfrom,carryingoutcommunityserviceobligationsaspart
of the activity.(4)The statement must disclose each of
the following items, foreach activity, separately as estimated
expenses—(a)operational costs;(b)depreciation;(c)competitive neutrality adjustments.(5)In this section—operational
costsinclude—(a)administrative and overhead costs;
and(b)thecostofresourcestobeusedincarryingontheactivity.17Statement in annual financial statements
aboutsignificant business activities to which
full cost pricingapplies(1)This
section prescribes, for section 116(2)(c)(vi) of the Act,informationthecouncilmustincludeinitsannualfinancialstatements about its significant business
activities to which fullcost pricing applies.(2)The information is a statement that
must, for each activity—(a)show the
revenues; and(b)showtheexpenses,includingallitemsrequiredtobetakenintoaccountfortherelevantpricingprovisionsother than return
on capital; and(c)include the surplus or deficit for the
financial year; and(d)includeadescriptionofthenatureofthecommunityservice
obligations provided.(3)The statement
must disclose each of the following items, foreach activity,
separately as revenues—
s
1813s 18City of Brisbane
Regulation 2004(a)revenueforgoodsandservicesprovidedtopersonsother than the
council by the activity;(b)revenue for goods
and services provided to the councilby the
activity;(c)the cost of, less any revenue arising
from, carrying outcommunity service obligations as part of the
activity.(4)The statement must disclose each of
the following items, foreach activity, separately as
expenses—(a)operational costs;(b)depreciation;(c)competitive neutrality adjustments.(5)In this section—operational
costsinclude—(a)administrative and overhead costs;
and(b)the cost of resources used in carrying
on the activity.Part 4CommercialisationDivision 1Preliminary18Object of pt 4Theobjectofthispartistomakefinancialmanagementstandards,undersection127(2)(c)oftheAct,aboutcommercialisation and its application to
CBUs under chapter 8,part 68of
the Local Government Act.8Chapter 8
(National competition reform of significant business activities),
part 6(Commercialisation of significant business
activities) of the Local Government Act
s
1914s 21City of Brisbane
Regulation 200419Application of pt 4Thispartappliestothecouncil’simplementationofcommercialisation for its significant
business activities underchapter 8, part 6 of the Local
Government Act.20Summary of matters affecting
commercialisationInsummary,thefollowingarethemattersaffectingcommercialisation—(a)the
relevant pricing provisions;(b)theprovisionindivision2aboutthetreatmentofcommunity service obligations;(c)the provisions in the Local Government
Act about theeliminationof,ortakingintoaccount,advantagesanddisadvantages of public
ownership;9(d)the provisions in
division 3 about financial reporting;(e)themattersmentionedineachCBU’sannualperformance plan
as required under section 24.10Division 2Treatment of
community serviceobligations21Extra
cost for community service obligations to betreated as
revenue(1)This section applies if community
service obligations for anactivity are carried out as part of
the activity.(2)For deciding charges for goods or
services provided as part ofthe activity, the
amount mentioned in subsection (3) must betreated as
revenue for the activity.9Seesections575(Meaningofcommercialisation)and576(Meaningofkeyprinciples of
commercialisation) of the Local Government Act.10Section 24 (Requirements for a CBU’s
annual performance plan)
s
2215s 22City of Brisbane
Regulation 2004(3)For subsection (2), the amount is the
cost of carrying out theobligationslessanyrevenuearisingfromcarryingouttheobligations.Division 3Financial reporting22Statement in budget about significant
business activitiesto which commercialisation applies(1)Each budget of the council must
include a statement about itssignificantbusinessactivitiestowhichcommercialisationapplies.(2)The statement must, for each
activity—(a)show the estimated revenues;
and(b)showtheestimatedexpenses,includingallitemsrequired to be
taken into account for the relevant pricingprovisions other
than return on capital; and(c)include the
estimated surplus or deficit for the financialyear; and(d)include a description of the nature of
community serviceobligations to be provided.(3)The statement must disclose each of
the following items, foreach activity, separately as estimated
revenues—(a)estimatedrevenueforservicestobeprovidedbytheactivity to persons other than the
council;(b)estimatedrevenueforservicestobeprovidedtothecouncil by the activity;(c)the estimated cost of, less any
estimated revenue arisingfrom,carryingoutcommunityserviceobligationsaspart
of the activity.(4)The statement must disclose each of
the following items, foreach activity, separately as estimated
expenses—(a)operational costs;(b)depreciation;(c)competitive neutrality
adjustments.
s
2316s 23City of Brisbane
Regulation 2004(5)In this section—operational
costsinclude—(a)administrative and overhead costs;
and(b)thecostofresourcestobeusedincarryingontheactivity.23Statement in annual financial statements
aboutsignificant business activities to
whichcommercialisation applies(1)This section prescribes, for section
116(2)(c)(vi) of the Act,informationthecouncilmustincludeinitsannualfinancialstatementsaboutitssignificantbusinessactivitiestowhichcommercialisation
applies.(2)The information is a statement that
must, for each activity—(a)show the
revenues; and(b)showtheexpenses,includingallitemsrequiredtobetakenintoaccountfortherelevantpricingprovisionsother than return
on capital; and(c)include the surplus or deficit for the
financial year; and(d)includeadescriptionofthenatureofthecommunityservice
obligations provided.(3)The statement
must disclose each of the following items, foreach activity,
separately as revenues—(a)revenueforgoodsandservicesprovidedtopersonsother than the
council by the activity;(b)revenue for goods
and services provided to the councilby the
activity;(c)the cost of, less any revenue arising
from, carrying outcommunity service obligations as part of the
activity.(4)The statement must disclose each of
the following items, foreach activity, separately as
expenses—(a)operational costs;(b)depreciation;(c)competitive neutrality
adjustments.
s
2417s 24City of Brisbane
Regulation 2004(5)In this section—operational
costsinclude—(a)administrative and overhead costs;
and(b)the cost of resources used in carrying
on the activity.24Requirements for a CBU’s annual
performance plan(1)A CBU’s annual performance plan11must include each of thefollowing matters—(a)theCBU’sfinancialandnon-financialperformancetargets for its
activities;(b)the nature and extent of the CBU’s
community serviceobligations;(c)the
costings of, and funding for, the CBU’s communityservice obligations.(2)A
CBU’s annual performance plan must also include each ofthe
following matters—(a)the CBU’s objectives and
functions;(b)the nature and scope of the CBU’s main
activities andundertakings;(c)theCBU’snotionalcapitalstructureandtreatmentofsurpluses;(d)the
CBU’s proposed major investments;(e)the
CBU’s outstanding and proposed borrowings;(f)theCBU’spolicyonthelevelandqualityofserviceconsumers can
expect from the CBU;(g)the delegations necessary to allow the
CBU to exercisemanagement autonomy and authority in its
commercialactivities;(h)the
type of information to be given in reports.11See
section 580 (Performance plan for commercial business units) of the
LocalGovernment Act.
s
2518s 25City of Brisbane
Regulation 2004(3)However,aCBUisnotrequiredtoincludeinitsannualperformanceplanamatter,oranaspectofamatter,mentionedinsubsection(2)ifthecouncilissatisfiedthematter or aspect is not materially relevant
to the CBU or itsactivities.(4)Subsections (1) and (2) do not limit the
matters that may beincluded in an annual performance
plan.(5)A matter in a CBU’s annual performance
plan may be omittedfrom copies of the plan made available to
the public if—(a)the matter is of a commercially
sensitive nature to theCBU; and(b)a
full statement of the matter is given—(i)iftheannualperformanceplanisadoptedbyresolution of the council—to each of the
council’scouncillors; or(ii)if
the council delegates the adoption of the annualperformance plan—to the delegate.12Part 5Code of
competitive conductDivision 1Preliminary25Object of pt 5Theobjectofthispartistomakefinancialmanagementstandards, under
section 127(2)(e) of the Act, about a code ofcompetitiveconductfortheapplicationofcompetitiveneutralityprinciplestothecouncil’sbusinessactivitiesandroadsbusinessactivitiesunderchapter913oftheLocalGovernment
Act.12See, also, section 250(2) (Improper
use of information by councillors) of the LocalGovernment
Act.13Chapter 9 (Conduct of competitive
business activities) of the Local Government Act
s
2619s 28City of Brisbane
Regulation 200426Application of codeThe
code applies to an activity of the council—(a)foraroadsbusinessactivity—fromwhenthecodeappliesundersection76314oftheLocalGovernmentAct;
or(b)for a business activity to which the
council has resolvedtoapplythecode—whiletheresolutioniseffectiveunder section
76615of the Local Government Act.27Elements of codeThe following are
the elements of the code—(a)the relevant
pricing provisions;(b)theprovisionsindivision2aboutthetreatmentofcommunity service obligations;(c)the provision in division 3 about the
elimination of, ortakingintoaccount,advantagesanddisadvantagesofpublic ownership;(d)the
provisions in division 4 about financial reporting.Division 2Treatment of
community serviceobligations28Extra
cost for community service obligations to betreated as
revenue(1)This section applies if community
service obligations for anactivity are carried out as part of
the activity.(2)For deciding charges for goods or
services provided as part ofthe activity, the
amount mentioned in subsection (3) must betreated as
revenue for the activity.14Section763(Codemustbeappliedtoroadsbusinessactivities)oftheLocalGovernment
Act15Section 766 (Local government to
resolve whether to apply code of competitiveconduct to
business activities) of the Local Government Act
s
2920s 31City of Brisbane
Regulation 2004(3)For subsection (2), the amount is the
cost of carrying out theobligationslessanyrevenuearisingfromcarryingouttheobligations.29Community service obligations not to be part
of roadsbusiness activitiesCommunity service
obligations must not be included in offersor competitive
tenders submitted for roads business activitiescarrying out work
on State-controlled roads.Division 3Elimination of,
or taking intoaccount, advantages anddisadvantages of
public ownership30Effect of advantages and disadvantages
of publicownershipThe council must
ensure—(a)ifpossibleandappropriate,thatanyadvantagesanddisadvantages arising because an activity to
which thecode applies is publicly owned are
eliminated; and(b)if any advantages or disadvantages are
not eliminated,that they are taken into account in the
required revenueworkedoutundertherequiredpricingprovisionsfordecidingchargestopersonsforgoodsorservicesprovided in
carrying on the activity.16Division 4Financial reporting31Statement in budget about activities to
which codeapplies(1)Each
budget of the council must include a statement about itsactivities to which the code applies.(2)The statement must, for each
activity—16See schedule 1, section 3 (Required
revenue for deciding charges).
s
3221s 32City of Brisbane
Regulation 2004(a)show the estimated revenues;
and(b)showtheestimatedexpenses,includingallitemsrequiredtobetakenintoaccountundertherelevantpricing
provisions, other than return on capital; and(c)include the estimated surplus or deficit for
the financialyear; and(d)includeadescriptionofthenatureofthecommunityservice
obligations to be provided.(3)The statement
must disclose each of the following items, foreach activity,
separately as estimated revenues—(a)estimatedrevenueforservicestobeprovidedbytheactivity to persons other than the
council;(b)estimatedrevenueforservicestobeprovidedbytheactivity to the council;(c)the estimated cost of, less any
estimated revenue arisingfrom,carryingoutcommunityserviceobligationsaspart
of the activity.32Omission of particular matters from
statement in budgetAstatementinabudgetofthecouncilrequiredundersection 31 may
include a summary of a matter required to beincludedinthebudget,insteadofafullstatementofthematter,
if—(a)the summary states—(i)it is a summary only; and(ii)afullstatementofthematterisavailableforinspectionandpurchaseatthecouncil’spublicoffice; and(b)a
full statement of the matter is available for inspectionand
purchase at the council’s public office during officehours
on business days.
s
3322s 34City of Brisbane
Regulation 200433Statement in annual financial
statements about activitiesto which code applies(1)This section prescribes, for section
116(2)(c)(vi) of the Act,informationthecouncilmustincludeinitsannualfinancialstatements about its significant business
activities to which thecode applies.(2)The
information is a statement that must, for each activity—(a)show the revenues; and(b)show the expenses, including any items
required to betaken into account under the relevant
pricing provisionsother than return on capital; and(c)include the surplus or deficit for the
financial year; and(d)include a description of the nature of
community serviceobligations provided.(3)The
statement must disclose each of the following items, foreach
activity, separately as revenues—(a)revenueforgoodsandservicesprovidedtopersonsother than the
council in carrying on the activity;(b)revenue for goods and services provided to
the councilin carrying on the activity;(c)the cost of, less any revenue arising
from, carrying outcommunity service obligations provided as
part of theactivity.34Omission of particular matters from
statement in annualfinancial statementsA statement in
the annual financial statements of the councilrequired under
section 33 may include a summary of a matterrequiredtobeincludedintheannualfinancialstatements,instead of a full
statement of the matter, if—(a)the
summary states—(i)it is a summary only; and(ii)afullstatementofthematterisavailableforinspectionandpurchaseatthecouncil’spublicoffice; and
s
3523s 37City of Brisbane
Regulation 2004(b)a full statement of the matter is
available for inspectionand purchase at the council’s public
office during officehours on business days.Part 6Reform of particular water andsewerage servicesDivision 1Preliminary35Object of pt 6Theobjectofthispartistomakefinancialmanagementstandards, under
section 127(2)(f) of the Act, about facilitatingthereformofparticularwaterandsewerageservicesunderchapter 10 of the
Local Government Act for relevant businessactivities of the
council and its corporatised corporations.36Definition for pt 6In this
part—entitymeans—(a)in relation to a relevant business
activity carried on by thecouncil—the council; or(b)in relation to a relevant business
activity carried on by acorporatisedcorporationofthecouncil—thecorporatised
corporation.37Requirements for relevant business
activitiesIn complying with section 78317of the Local Government Actforarelevantbusinessactivity,anentitymustcomplywithdivisions 2 to 6.17Section783(Localgovernmentstoimplementchargingandoperationalarrangements for
relevant business activities) of the Local Government
Act
s
3824s 39City of Brisbane
Regulation 2004Division 2Consumption as
the basis for utilitycharges for water services38Application of div 2This
division applies to the extent an entity’s relevant businessactivity provides water services.39How utility charges for water services
based onconsumption must be worked out(1)This section prescribes how a utility
charge for water servicesbasedonconsumption,18includingtheconsumptioncomponent of a
two-part tariff, must be worked out.(2)The
utility charge must be worked out—(a)ifatwo-parttariffapplies—onthebasisstatedinsubsection (3)(b); or(b)otherwise—onabasisstatedinsubsection(3),(5)or (6).(3)If
utility charges are worked out based on meter readings ofwater
consumed, the utility charges for consumers or groupsof
consumers must be based on—(a)a fixed amount
and a further amount or further amountsfor each unit or
part of a unit of the quantity of watersupplied greater
than a stated unit or units; or(b)an
amount or amounts for units or part of a unit of thequantity of water supplied.(4)Subsection (5) applies if—(a)utility charges are not based on a
meter reading of waterconsumed; and(b)consumers are divided by the entity into
groups basedon the estimated average quantity of water
expected tobe supplied to consumers in each
group.18See section 783(b) of the Local
Government Act.
s
4025s 41City of Brisbane
Regulation 2004(5)If this subsection applies, the
utility charge for consumers in agroup must be
based on the estimated average consumptionby all consumers
in the group.Example for subsection (5)—The council could, by sampling or
other ways, work out the averageusage of domestic
consumers was 300 kL a year and the average ofcommercial
consumers was 2 000 kL a year. The utility charge couldthenbebasedonanotionalaccesschargeofsay,fordomesticconsumers, $100
and, for commercial consumers, $600 and a notionalusagechargeof$1foreachkL.Thechargeswouldbe$400fordomestic consumers and $2 600 for commercial
consumers. Given theconsiderable variability of consumption
across commercial consumers,it would be
preferable to further divide them by type and make separateassessments for each. Some of the commercial
users may be meteredandchargedonthebasisofactualconsumptioninwhichcasesubsection (4) would not apply to
them.(6)Iftheutilitychargeisnotworkedoutundersubsection(3)or (5), it must be worked out on a
basis the entity considersappropriatetodecidethereasonablylikelyconsumptionbythe
consumer.Division 3Full cost
recovery40Application of div 3This
division does not apply to an entity deciding the chargesforwaterandsewerageservicesprovidedtopersonsincarrying on a relevant business activity if
the entity applies therelevant pricing provisions under part
3 or 4 in deciding thecharges.41Required revenue for deciding chargesIndecidingtheamountofachargeforwaterorsewerageservices provided
to persons in carrying on a relevant businessactivity, an
entity must ensure the projected total revenue fromcarrying on the activity is enough to cover
the projected totalcosts of carrying on the activity for a
financial year.
s
4226s 45City of Brisbane
Regulation 200442Total costs of carrying on relevant
business activityForthisdivision,thetotalcostsofcarryingonarelevantbusiness activity
include each of the following—(a)the
operational costs incurred in carrying on the activity;(b)a reasonable allocation of the
entity’s administrative andoverhead costs;(c)the
cost of resources used in carrying on the activity;(d)depreciation;(e)return on capital employed.43Administrative and overhead
costsFor section 42(b), the entity must make a
reasonable allocationofitsadministrativeandoverheadcoststoeachrelevantbusiness activity to which full cost
recovery applies.44Cost of resources used in carrying on
relevant businessactivity(1)For
section 42(c), if resources are provided by or to the entityforcarryingonarelevantbusinessactivity,thecostofresources used in
carrying on the activity may be taken to be—(a)iftheresourceshaveanidentifiablecost—thecostofthe resources;
or(b)ifparagraph(a)doesnotapplyandtheresourcesarereadily available on the open market—the
price at whichthe resources can be obtained on the
market.(2)If subsection (1)(b) applies, the
entity must ensure the termson which the cost
is based are similar to the terms on whichthey are made
available in carrying on the activity.45Depreciation(1)For
section 42(d), depreciation of an asset used in carrying ona
relevant business activity must be based on the depreciableamount for the asset allocated over its
useful life.
s
4627s 48City of Brisbane
Regulation 2004(2)However, the entity may decide to base
the depreciation on anamountdecidedbytheentitytobeappropriateinthecircumstances.46Return on capital(1)For
section 42(e), the amount for the return on the capital usedin
carrying on a relevant business activity must be a positivereal
rate decided by the entity.(2)In this
section—capitalusedincarryingonarelevantbusinessactivitymeans the total
value, using an accepted accounting method,oftheassetsusedfortheactivitylesstheliabilitiesattributable to
the activity.Division 4Treatment of
community serviceobligations47Extra
cost for community service obligations to betreated as
revenueIfcommunityserviceobligationsforarelevantbusinessactivityarecarriedoutaspartoftheactivity,fordecidingcharges for goods
and services provided through the activity,thefollowingamountmustbetreatedasrevenuefortheactivity—(a)the
cost of carrying out the obligations; less(b)any
revenue arising from carrying out the obligations.Division 5Identification
and disclosure ofcross-subsidies between classes ofconsumers48Disclosure of cross-subsidies in annual
report(1)In its annual report, an entity must
state the amount of anycross-subsidiesbetweenthefollowingclassesofconsumers
s
4928s 49City of Brisbane
Regulation 2004forwaterorsewerageservicesprovidedforthefinancialyear—(a)domestic consumers;(b)commercial consumers;(c)industrial consumers;(d)another class decided by the
entity;(e)other consumers.(2)For
deciding the amount to be stated for subsection (1), theentity must, to the extent it is reasonably
practicable, complywiththedocumentcalled‘GuidelinesforIdentificationandMeasurement of Cross-Subsidies’ (September
1998).19Division 6Disclosure of
community serviceobligations49Disclosure of community service
obligationsAn entity must disclose in its annual
report—(a)communityserviceobligationsforarelevantbusinessactivity carried out during the financial
year as part of theactivity; and(b)the
cost of, less any revenue arising from, carrying outthe
obligations.19A copy of the guidelines may be
inspected, free of charge, during office hours onbusiness days at the office of the
Department of Local Government, Planning, Sportand Recreation at
41 George Street, Brisbane.
s
5029s 51City of Brisbane
Regulation 2004Part 7Miscellaneous
provisions50Prescribed interest on unpaid
rate—Act, s 67For section 67(2)(a)20of
the Act, the prescribed rate of interestis 11% a
year.51Certificate about payment of notional
GST—Act,s 127(2)(a)The council must,
not later than 15 September in each financialyear, give the
Minister a certificate stating the council has paidnotional GST for the most recently completed
financial year.20Section 67 (Unpaid rate may bear
interest) of the Act
30City of Brisbane Regulation 2004Schedule 1Relevant pricing
provisionsSchedule 2, definitionrelevantpricingprovisions1Definition for sch 1In this
schedule—relevant activitymeans—(a)fortheapplicationoftherelevantpricingprovisionsunder section
14(a)21—a significant business activity
ofthe council to which full cost pricing
applies; or(b)fortheapplicationoftherelevantpricingprovisionsunder section
20(a)22—a significant business activity
ofthe council to which commercialisation
applies; or(c)fortheapplicationoftherelevantpricingprovisionsundersection27(a)23—anactivityofthecounciltowhich the code applies under section
26.2References to sectionsInthisschedule,unlessotherwisestatedareferencetoasection is a reference to a section of
this regulation.3Required revenue for deciding
chargesIn deciding charges to persons for goods or
services providedin carrying on a relevant activity, the
council must ensure theprojected total revenue from carrying
on the activity is enoughto cover the projected total costs of
carrying on the activityfor—21Section 14 (Summary of matters affecting
full cost pricing)22Section 20 (Summary of matters
affecting commercialisation)23Section 27 (Elements of code)
31City of Brisbane Regulation 2004Schedule 1 (continued)(a)if
the relevant activity is an activity to which the codeapplies under section 26—a period of more
than 1 yearbut not more than 5 years; or(b)otherwise—the council’s financial
year.4Different charges for commercial
reasons(1)Achargemaybedecidedforprovidingspecificgoodsorservicesincarryingonarelevantactivitythatis,forcommercial reasons, an appropriate charge
for the goods orservices provided.(2)Forsubsection(1),achargeis,forcommercialreasons,anappropriatechargeifitcouldreasonablybechargedifthegoods or services were provided by an
entity carrying on theactivitywiththeprimaryobjectofmakingaprofitfromcarrying on the activity.5Total costs of carrying on relevant
activity(1)Forthisschedule,thetotalcostsofcarryingonarelevantactivity include
each of the following—(a)the operational
costs incurred in carrying on the activity;(b)administrative and overhead costs;(c)the cost of resources used in carrying
on the activity;(d)depreciation;(e)equivalentsforCommonwealthorStatetaxesthecouncilisnotliabletopaybecauseitisalocalgovernment;(f)equivalents for the cost of funds advantage
the councilobtains over commercial interest rates
because of Stateguarantees on borrowings;(g)return on capital.(2)Thetotalcostsmustbeadjustedforotheradvantagesanddisadvantages of public ownership that
are not eliminated.
32City of Brisbane Regulation 2004Schedule 1 (continued)(3)Subsection (2) does not apply in relation to
a relevant activityto which commercialisation applies.6Allocation of administrative and
overhead costsFor section 5(1)(b) of this schedule, the
council must make areasonable allocation of its administrative
and overhead coststo each relevant activity, having regard to
all of the council’srelevant activities.7Cost
of resources used in carrying on activity(1)For
section 5(1)(c) of this schedule, if resources are providedbyortothecouncilforcarryingonanactivity,thecostofresourcesusedincarryingontheactivitymaybetakentobe—(a)iftheresourceshaveanidentifiablecost—thecostofthe resources;
or(b)ifparagraph(a)doesnotapplyandtheresourcesarereadilyavailableontheopenmarket—thepriceatwhich the resources can be obtained on
the market.(2)If subsection (1)(b) applies, the
council must ensure the termson which the cost
is based are similar to the terms on whichthey are made
available in carrying on the activity.8Depreciation(1)For
section 5(1)(d) of this schedule, depreciation of an assetusedincarryingonanactivitymustbebasedonthedepreciable
amount for the asset allocated over its useful life.(2)However, the council may decide to
base the depreciation onanamountdecidedbythecounciltobeappropriateinthecircumstances.9Equivalent amounts for taxes council is not
liable to pay(1)This section applies, for section
5(1)(e) of this schedule, forworking out the
equivalent amount for a Commonwealth or
33City of Brisbane Regulation 2004Schedule 1 (continued)State tax the
council is not liable to pay because it is a localgovernment.(2)The
equivalent amount must be worked out—(a)for a
tax to which a tax equivalents manual applies—byapplyingthegeneralprinciplesprovidedforinthemanual; or(b)ifparagraph(a)doesnotapply—byestimatingtheamount a private sector entity
carrying on the businesswould calculate to be its liability to
the tax.(3)Subsection(2)(a)doesnot,ofitself,requirethecounciltocomplywithaprocessorotherrequirementunderthetaxequivalents
manual.(4)However, the council must keep, for 7
years from the day theequivalent amount is worked out,
details of the calculationsmade in working out the equivalent
amount.(5)This section does not apply in
relation to a relevant activity towhich
commercialisation applies.10Guarantees by
State(1)Thissectionapplies,forsection5(1)(f)ofthisschedule,inrelation to a relevant activity that
is an activity to which thecode applies under section 26.24(2)IftheStateguaranteesrepaymentofadebtofthecouncilattributed to the
activity, the council must, in carrying on theactivity,takeaccountofamountsequivalenttothecostoffunds advantage the council obtains
over commercial interestrates because of the guarantee.24For the equivalent provision for a
relevant activity to which full cost pricing applies,seesection569(GuaranteesbyState)oftheLocalGovernmentAct.Fortheequivalent provision for a relevant activity
to which commercialisation applies, seesection 583
(Guarantees by State) of the Local Government Act.
34City of Brisbane Regulation 2004Schedule 1 (continued)11Return on capital(1)For
section 5(1)(g) of this schedule, the amount for the returnon
the capital used in carrying on a relevant activity must bedecidedusingtherateatwhich,inthecouncil’sopinion,acomparableprivatesectorentitycarryingontheactivitywouldbeabletoobtainthecapitalinthemarket,havingregard to the split the council considers
appropriate, for thetypeofbusiness,betweenequityandloancapitalandthereturn
appropriate to each.(2)However,theamountforthereturnonthecapitalusedincarrying on an activity for the first
year in which the activityis a relevant activity may be the
amount the council decides.(3)In this
section—capital used in carrying on a relevant
activitymeans the totalvalue, decided
using an accepted accountancy method, of theassets used for
the activity less the liabilities attributable to theactivity.
35City of Brisbane Regulation 2004Schedule 2Dictionarysection 3AustralianAccountingStandardsmeanstheaccountingstandardsissuedbytheAustralianAccountingStandardsBoard.CBUmeans a commercial business unit of
the council.codemeans the code of competitive conduct
prescribed underpart 5.25community service obligations, for
an activity, means—(a)for an activity carried on by a
corporatised corporationunderchapter8,part7oftheLocalGovernmentAct—see section
67726of the Local Government Act; or(b)for an activity carried on by a
CBU—see section 57727of the Local Government Act; or(c)foranotheractivitycarriedonbythecouncil—theobligations to do
something if the council is satisfied—(i)that
if the activity were carried on by an entity withtheprimaryobjectofmakingaprofit,thethingwould not be in
the entity’s commercial interests toperform;
and(ii)the obligations arise because of a
direction by thecouncil.competitive
neutrality adjustments, for a significant businessactivity of the council, includes each of
the following—(a)equivalents for taxes other than
income tax;25Part 5 (Code of competitive
conduct)26Section 677 (Meaning ofcommunity service obligations) of
the Local GovernmentAct27Section 577
(Definitions for pt 6) of the Local Government Act
36City of Brisbane Regulation 2004Schedule 2 (continued)(b)equivalents for the cost of funds advantage
the councilobtains over commercial interest rates
because of Stateguarantees on borrowings;(c)adjustments for advantages and
disadvantages of publicownership of the activity.depreciableamount,foranasset,meansthedepreciableamountfortheassetworkedoutundertheAustralianAccounting
Standards.entity, for part 6, see
section 36.LGA arrangementmeansanLGA arrangementundertheLocal Government Finance Standard
1994.preferred supplier arrangementmeans
an arrangement by thecouncilwithasupplierforthesupplyofgoodsorservicesunder agreed
pricing conditions for a stated period.pre-qualifiedsuppliermeansasupplierwhohasbeenassessed by the
council as having the technical, financial andmanagerial
capability necessary to perform contracts on timeand
in accordance with agreed requirements.purchasing
arrangementmeans any of the following—(a)a preferred supplier
arrangement;(b)a register of pre-qualified
suppliers;(c)a standing offer arrangement.relevant pricing provisionsmeans
schedule 1.standing offer arrangementmeans
an arrangement to whichthe council is a party with a supplier
for the supply of goodsor services at a fixed price for a
stated period.taxequivalentsmanualmeansataxequivalentsmanualunder
section 58228of the Local Government Act.28Section 582 (Commonwealth and State
tax equivalents) of the Local GovernmentAct
37City of Brisbane Regulation 2004Endnotes1Index to endnotesPage2Date to which amendments incorporated
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.373Key . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . .374Table of reprints
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . .385List
of legislation . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .382Date to which amendments
incorporatedThis is the reprint date mentioned in the
Reprints Act 1992, section 5(c). However, noamendments have
commenced operation on or before that day. Future amendments of
theCity of Brisbane Regulation 2004 may be made
in accordance with this reprint under theReprints Act 1992,
section 49.3KeyKey to
abbreviations in list of legislation and annotationsKeyAIAamdamdtchdefdivexpgazhdginslapnotfdo in comorigpparaprecpresprevExplanation=Acts
Interpretation Act 1954=amended=amendment=chapter=definition=division=expires/expired=gazette=heading=inserted=lapsed=notified=order
in council=omitted=original=page=paragraph=preceding=present=previousKey(prev)procprovptpubdR[X]RArelocrenumrep(retro)rvsschsdivSIASIRSLsubunnumExplanation=previously=proclamation=provision=part=published=Reprint No.[X]=Reprints Act 1992=relocated=renumbered=repealed=retrospectively=revised edition=section=schedule=subdivision=Statutory Instruments Act 1992=Statutory Instruments Regulation
2002=subordinate legislation=substituted=unnumbered
