Page 3567 - Week 08 - Thursday, 18 August 2011

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Answers to questions

Taxation—utilities
(Question No 1638)

Mr Seselja asked the Treasurer, upon notice, on 21 June 2011:

(1) Is the utilities tax rate indexed annually; if so, what rate is this indexed to.

(2) What are the expected growth levels of network route length for (a) 2010-11, (b) 2011-12, (c) 2012-13, (d) 2013-14 and (e) 2014-15.

(3) What is the methodology for calculating the determined rate for the tax.

(4) Has the Government received complaints from the public regarding the utilities network facilities tax; if so, what has the Government done to address the issues raised.

(5) Can the Treasurer provide a list of companies that have chosen to absorb this cost themselves and not pass on to their customers.

Mr Barr: The answer to the member’s question is as follows:

(1) Yes, the rate is indexed annually by the ‘ACT Total’ (e.g. private and public sectors) Wage Price Index (WPI) as at the previous December annual change.

(2) The utilities provide the network route length to the ACT Revenue Office based on an agreed formula. Any variation to the route length is provided by the utility. Treasury has not factored any growth for network route length into the revenue forecasts.

(3) The methodology used to calculate the determined rate is to vary the previous years determined rate per kilometre by the ACT Total WPI.

(4) The Government has received some complaints from the public in relation to the Utilities (Network Facilities) Tax (UNFT). The Government has responded to these concerns by providing the context of the tax.

(5) The UNFT is a tax on utilities, therefore whether they pass this tax on to their clients is a business decision for each utility. Disclosure of taxpayer information is protected under the Taxation Administration Act 1999 and therefore a list of companies who have chosen to absorb the cost cannot be provided. The taxpayer in this instance is the utility, not members of the public.

Actew Corporation Ltd—investments
(Question No 1639)

Mrs Dunne asked the Treasurer, upon notice, on 21 June 2011:

(1) How much does ACTEW Corporation have invested in TransACT Capital Communications Pty Ltd (a) directly and (b) indirectly.

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