What this division is about
43 What this division is about
This division is about the application of the National Competition Policy Agreements in relation to the significant business activities of a local government.
This includes the application of the competitive neutrality principle if, in the circumstances, the public benefit (in terms of service quality and cost) outweighs the costs of implementation.
Under the competitive neutrality principle, an entity that is conducting a business activity in competition with the private sector should not enjoy a net advantage over competitors only because the entity is in the public sector.
A significant business activity is a business activity of a local government that—
is conducted in competition, or potential competition, with the private sector (including off-street parking, quarries, sporting facilities, for example); and
meets the threshold prescribed under a regulation.
However, a significant business activity does not include a business activity that is—
a building certifying activity; or
a roads activity; or
related to the provision of library services.
Note—
A building certifying activity or roads activity is dealt with under section 47.
This provision refers to the regulations (a regulation
). Made under this Act:
This Act’s bill:Explanatory memorandumSecond reading speech
The statute text is free to read above. View subscription options to unlock the case-law research tools for each provision.