City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 (QLD)

Queensland City of Brisbane Act 2010 City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Reprinted as in force on 1 July 2010 Reprint No. 1 This reprint is prepared by the Office of the Queensland Parliamentary Counsel Warning—This reprint is not an authorised copy NOTE—This is the last reprint before repeal. Repealed by 2012 SL No. 235 s 280

Information about this reprint This regulation is reprinted as at 1 July 2010. 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. Spelling The spelling of certain words or phrases may be inconsistent with other reprints because of changes made in various editions of the Macquarie Dictionary (for example, in the dictionary, ‘lodgement’ has replaced ‘lodgment’). Dates shown on reprints Reprints dated at last amendment All reprints produced on or after 1 July 2002, authorised (that is, hard copy) and unauthorised (that is, electronic), are dated as at the last date of amendment. Previously reprints were dated as at the date of publication. If an authorised reprint is dated earlier than an unauthorised version published before 1 July 2002, it means the legislation was not further amended and the reprint date is the commencement of the last amendment. If the date of an authorised reprint is the same as the date shown for an unauthorised version previously published, it merely means that the unauthorised version was published before the authorised version. Also, any revised edition of the previously published unauthorised version will have the same date as that version. Replacement reprint date If the date of an authorised reprint is the same as the date shown on another authorised reprint it means that one is the replacement of the other.

Queensland City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Contents Chapter 1 1 2 3 4 Chapter 2 5 6 Chapter 3 Part 1 7 8 Part 2 Division 1 9 10 Division 2 11 12 13 14 15 16 17 18 Page Introduction Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Simplified outline of main provisions of regulation . . . . . . . . . . . . 9 Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Beneficial enterprises Planning for a beneficial enterprise with the private sector . . . . . 10 Approval for council to invest in a beneficial enterprise . . . . . . . . 11 Business reform Introduction What ch 3 is about . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Reforming a significant business . . . . . . . . . . . . . . . . . . . . . . . . . 12 Identifying significant businesses for reform Identifying significant business for reform Thresholds for significant businesses—Act, s 47(4)(b) . . . . . . . . 13 Identifying significant business for reform—Act, s 49. . . . . . . . . . 13 Assessing significant business for reform What div 2 is about. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Deciding how to conduct an assessment . . . . . . . . . . . . . . . . . . . 14 Consultation process for assessment. . . . . . . . . . . . . . . . . . . . . . 15 Public benefit assessment for type 1 and type 2 significant businesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Reporting on an assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Complying with guidelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Public notice of assessment report . . . . . . . . . . . . . . . . . . . . . . . 17 Timetable for change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Contents Part 3 19 20 21 22 23 Part 4 Division 1 24 Division 2 25 26 27 28 Division 3 29 30 31 32 Part 5 Division 1 33 Division 2 Subdivision 1 34 35 36 37 38 39 40 Subdivision 2 41 42 43 44 Page 2 Full cost pricing What pt 3 is about . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Full cost pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cost of community service obligations . . . . . . . . . . . . . . . . . . . . . Community service obligations. . . . . . . . . . . . . . . . . . . . . . . . . . . Taking account of government taxes . . . . . . . . . . . . . . . . . . . . . . Commercialisation Introduction What pt 4 is about . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Converting and creating commercial business units Commercial business unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . What are the key principles of commercialisation . . . . . . . . . . . . Converting a business unit to a commercial business unit. . . . . . Creating a commercial business unit . . . . . . . . . . . . . . . . . . . . . . Corporate plan, operational plan and annual report What div 3 is about. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Corporate plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Operational plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Annual report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Corporatising a significant business Introduction What pt 5 is about . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Corporatisation process Constitution and corporatisation plan What this subdivision is about . . . . . . . . . . . . . . . . . . . . . . . . . . . Committee to oversee corporatisation . . . . . . . . . . . . . . . . . . . . . Preparing constitution and corporatisation plan . . . . . . . . . . . . . . Approving constitution and corporatisation plan. . . . . . . . . . . . . . Amending constitution and corporatisation plan. . . . . . . . . . . . . . Public access to constitution and corporatisation plan. . . . . . . . . Expiry of corporatisation plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . Interim entity What this subdivision is about . . . . . . . . . . . . . . . . . . . . . . . . . . . Establishment of interim entity . . . . . . . . . . . . . . . . . . . . . . . . . . . Resolution for interim entity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Interim board of directors for interim entity. . . . . . . . . . . . . . . . . . 19 19 21 21 21 22 23 23 25 25 25 25 26 27 28 29 30 31 31 31 32 32 33 33 33 34

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Contents 45 46 47 Subdivision 3 48 49 Part 6 Division 1 50 51 Division 2 Subdivision 1 52 Subdivision 2 53 54 55 56 57 Subdivision 3 58 59 60 Subdivision 4 61 62 63 64 Subdivision 5 65 66 Subdivision 6 67 68 69 Application of particular provisions about directors and executives to interim entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . Assistance to interim entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . Share capital and issue of shares . . . . . . . . . . . . . . . . . . . . . . . . Resolution for corporatisation What sdiv 3 is about . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Resolution to bring a corporate entity to life . . . . . . . . . . . . . . . . . Corporate entities Key principles of corporatisation Application of key principles of corporatisation . . . . . . . . . . . . . . What are the key principles of corporatisation . . . . . . . . . . . . . . . Directors and employees of a corporate entity Introduction What div 2 is about. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Board of directors Establishing board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appointing directors to the board . . . . . . . . . . . . . . . . . . . . . . . . . Appointing the chairperson and deputy chairperson . . . . . . . . . . Appointing an acting director . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ending a director’s appointment . . . . . . . . . . . . . . . . . . . . . . . . . . Meetings and other business of the board Meetings of the board. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Resolution without a meeting of the board . . . . . . . . . . . . . . . . . . Delegation by board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chief executive officer Chief executive officer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appointing the chief executive officer . . . . . . . . . . . . . . . . . . . . . . Appointing an acting chief executive officer . . . . . . . . . . . . . . . . . Ending the chief executive officer’s appointment . . . . . . . . . . . . . Other employees What sdiv 5 is about . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appointing other employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Provisions applying to all employees Corporate entity super schemes . . . . . . . . . . . . . . . . . . . . . . . . . Super scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Preserving entitlements of council employees . . . . . . . . . . . . . . . 35 35 35 36 36 37 38 39 40 41 42 42 42 43 44 45 45 46 46 46 47 47 47 47 48 Page 3

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Contents 70 71 Subdivision 7 72 73 Division 3 74 75 76 77 78 79 80 Division 4 81 82 83 84 85 Division 5 86 87 88 89 90 Division 6 Subdivision 1 91 92 93 94 95 Subdivision 2 96 97 Work performance arrangements. . . . . . . . . . . . . . . . . . . . . . . . . Who are not employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dual service Dual service for directors of corporate entities . . . . . . . . . . . . . . . Restrictions on dual service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Share capital, shares and shareholder What div 3 is about. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Shares and shareholder of a corporate entity . . . . . . . . . . . . . . . Shareholder delegates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Shareholder delegates who act honestly and without negligence are protected from liability . . . . . . . . . . . . . . . . . . . . . Varying share capital of a corporate entity . . . . . . . . . . . . . . . . . . Transferring shares in a corporate entity . . . . . . . . . . . . . . . . . . . Shareholder monitoring of corporate entities . . . . . . . . . . . . . . . . Dividends of a corporate entity What div 4 is about. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . First dividend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Full year dividend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Half year dividend. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Amount of dividend. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Shareholder directions to a corporate entity What div 5 is about. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Direction prohibiting disposal of assets . . . . . . . . . . . . . . . . . . . . Directions in public interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Corporate entity may direct subsidiary . . . . . . . . . . . . . . . . . . . . . Complying with directions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Documents of corporate entity Corporate documents What sdiv 1 is about . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . What is a statement of corporate intent . . . . . . . . . . . . . . . . . . . . What is a corporate plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Preparing and approving a draft corporate document . . . . . . . . . Changing a corporate document . . . . . . . . . . . . . . . . . . . . . . . . . Reports to shareholder What sdiv 2 is about . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . What is a quarterly report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 4 49 50 50 51 51 52 52 53 54 54 54 55 55 56 56 57 58 58 58 59 59 60 60 62 62 63 64 64

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Contents 98 99 100 Subdivision 3 101 102 Subdivision 4 103 104 105 Division 7 106 107 Division 8 108 109 Division 9 110 Division 10 111 112 113 114 115 116 Chapter 4 117 118 Chapter 5 Part 1 119 Part 2 Division 1 120 121 What is an annual report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Reporting to shareholder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Reporting suspected insolvency. . . . . . . . . . . . . . . . . . . . . . . . . . Public access to documents What sdiv 3 is about . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Public access to documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Legal provisions Councillors or employees who act honestly and without negligence are protected from liability . . . . . . . . . . . . . . . . . . . . . Authentication of documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . Giving documents to a corporate entity . . . . . . . . . . . . . . . . . . . . Finances of a corporate entity Guarantee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Liability of council . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Changing a corporate entity Changing responsibilities or name of corporate entity . . . . . . . . . Disposing of main business activities . . . . . . . . . . . . . . . . . . . . . . Subsidiary corporate entity Forming subsidiary corporate entities . . . . . . . . . . . . . . . . . . . . . Legal provisions Geographical application of div 10 . . . . . . . . . . . . . . . . . . . . . . . . Legal proceedings by or against a corporate entity . . . . . . . . . . . Powers of a corporate entity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Assumptions when dealing with corporate entity . . . . . . . . . . . . . When particular resolutions take effect . . . . . . . . . . . . . . . . . . . . How corporatisation affects existing legal relationships . . . . . . . . Provisions for code of competitive conduct Building certifying activity—Act, s 51(4)(b). . . . . . . . . . . . . . . . . . Prescribed business activities—Act, s 51(7) . . . . . . . . . . . . . . . . Competitive neutrality complaints Introduction What ch 5 is about . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Complaint process Introduction Application of pt 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Minimum requirements for complaint process . . . . . . . . . . . . . . . 64 65 67 68 69 69 70 71 71 71 71 72 72 72 73 73 74 75 76 76 77 77 78 78 Page 5

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Contents Division 2 122 123 124 125 126 127 Division 3 128 129 130 131 132 Division 4 133 134 135 136 137 138 139 Part 3 140 141 142 143 144 145 146 147 148 149 150 151 Process before investigation What div 2 is about. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Making a complaint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appointing a referee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Referee requiring further information . . . . . . . . . . . . . . . . . . . . . . Referee refusing to investigate . . . . . . . . . . . . . . . . . . . . . . . . . . . Notice of intention to investigate. . . . . . . . . . . . . . . . . . . . . . . . . . Process for investigation What div 3 is about. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Referee’s conduct when investigating . . . . . . . . . . . . . . . . . . . . . Matters the referee must consider when investigating . . . . . . . . . Documents for investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Confidential information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Process after investigation What div 4 is about. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Referee’s report on investigation . . . . . . . . . . . . . . . . . . . . . . . . . Required matters for referee’s report . . . . . . . . . . . . . . . . . . . . . . Public access to report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Information to persons given an investigation notice . . . . . . . . . . Council response to referee’s report . . . . . . . . . . . . . . . . . . . . . . Protection from liability of referee or person assisting referee . . . References to QCA What pt 3 is about . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Who may refer and grounds for reference . . . . . . . . . . . . . . . . . . Making a reference. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Request for referee’s documents . . . . . . . . . . . . . . . . . . . . . . . . . Further information to support reference . . . . . . . . . . . . . . . . . . . Matters QCA must consider . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Procedures for dealing with references . . . . . . . . . . . . . . . . . . . . Report on reference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Required matters for QCA’s report . . . . . . . . . . . . . . . . . . . . . . . . Public access to report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Information to persons given an investigation notice . . . . . . . . . . Council decision about report. . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 79 80 80 81 82 83 83 83 85 85 86 86 87 88 88 88 89 89 90 90 91 91 91 92 92 92 93 93 93 Page 6

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Contents Part 4 Division 1 152 153 154 Division 2 155 156 Division 3 157 158 159 160 Division 4 161 162 163 164 Part 5 165 166 Chapter 6 167 Schedule 1 1 2 3 4 5 6 7 8 9 10 Accreditation Introduction What pt 4 is about . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Purpose of accreditation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Business activities to which the code of competitive conduct applies ......................................... Process before investigation Applying for accreditation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Notice before investigation starts . . . . . . . . . . . . . . . . . . . . . . . . . Process for investigation Procedures for investigations . . . . . . . . . . . . . . . . . . . . . . . . . . . . Matters QCA must consider . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Decision on application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conditions on grant of accreditation . . . . . . . . . . . . . . . . . . . . . . . Process after investigation Notice of decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Surrendering accreditation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cancelling accreditation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . List of accreditations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Miscellaneous provisions Register . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Annual report to include summary of complaints and decisions by council . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Transitional provision New type 1 or 2 business activities . . . . . . . . . . . . . . . . . . . . . . . Pricing provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Definitions for sch 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Required revenue for deciding charges . . . . . . . . . . . . . . . . . . . . Different charges for commercial reasons . . . . . . . . . . . . . . . . . . Total costs of conducting relevant activity . . . . . . . . . . . . . . . . . . Allocation of administrative and overhead costs. . . . . . . . . . . . . . Cost of resources used in conducting activity . . . . . . . . . . . . . . . Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Equivalent amounts for taxes council is not liable to pay . . . . . . . Guarantees by State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Return on capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 95 95 95 95 96 96 97 97 98 99 99 100 100 101 102 103 103 103 103 104 104 104 105 105 106 106 Page 7

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Contents Schedule 2 Dictionary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 Endnotes 1 2 3 4 5 Index to endnotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Date to which amendments incorporated. . . . . . . . . . . . . . . . . . . . . . Key . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Table of reprints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . List of legislation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 111 111 112 112 Page 8

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 1 Introduction [s 1] City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 [reprinted as in force on 1 July 2010] Chapter 1 Introduction 1 Short title This regulation may be cited as the City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 . 2 Commencement This regulation commences on 1 July 2010. 3 Simplified outline of main provisions of regulation (1) Chapter 2 provides for matters about beneficial enterprises, including providing for additional approval processes for investing in a beneficial enterprise. (2) Chapters 3 to 5 provide for the application of the National Competition Policy Agreements to the council. (3) In particular— (a) chapter 3 is about reforming type 1 significant businesses and type 2 significant businesses in accordance with the competitive neutrality principle; and (b) chapter 4 is about reforming other business activities in accordance with the competitive neutrality principle; and Reprint 1 effective 1 July 2010 Page 9

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 2 Beneficial enterprises [s 4] (c) chapter 5 is about competitive neutrality complaints and references to QCA. 4 Definitions The dictionary in schedule 2 defines particular words used in this regulation. Chapter 2 Beneficial enterprises 5 Planning for a beneficial enterprise with the private sector (1) This section is about beneficial enterprises under section 46 of the Act. (2) The amount that must be invested under section 46(2) of the Actincludes the value of any property, other than money, committed to the beneficial enterprise. (3) The maximum number of years for section 46(5) of the Act is 3 years. (4) An amount that is equal to or more than 10% of the council’s own source revenue is the amount prescribed for section 46(6)(b) of the Act. (5) The council’s own source revenue is revenue it receives from the following sources— (a) charges for services or facilities under section 242(3)(c) of the Act; (b) cost-recovery fees; (c) ex gratia payments made to the council; (d) fines paid to the council; (e) general rates; (f) interest earned on the council’s funds. Page 10 Reprint 1 effective 1 July 2010

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 2 Beneficial enterprises [s 6] 6 Approval for council to invest in a beneficial enterprise (1) This section applies if the council wants to apply for the approval of the department’s chief executive under section 46(6) of the Act to invest in a beneficial enterprise. (2) The application must be in the approved form. (3) The chief executive may require the council to provide further information that will help the chief executive to consider the application. (4) The chief executive may refuse to consider the application until the council gives the chief executive the further information. (5) After considering the application, the chief executive must decide whether or not to grant the approval. (6) The chief executive must give the council notice of— (a) the decision; and (b) if the approval is granted—any conditions that the chief executive is imposing on the approval. (7) The council must comply with the conditions. (8) As well as granting an approval to the council, the chief executive may grant an approval to all local governments that satisfy the criteria, and comply with the conditions, stated in a gazette notice. Examples of criteria — 1 The chief executive may grant an approval to all local governments with a particular credit rating that is specified in a gazette notice. 2 The chief executive may grant an approval to all local governments to invest in beneficial enterprises relating to a particular industry that is specified in a gazette notice. 3 The chief executive may grant an approval to several local governments that are conducting a joint government activity. (9) The council must keep a copy of the chief executive’s notice, or gazette notice, in the register of beneficial enterprises established under section 45 of the Act. Reprint 1 effective 1 July 2010 Page 11

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 1 Introduction [s 7] Chapter 3 Business reform Part 1 Introduction 7 What ch 3 is about This chapter is about reforming a significant business activity (a significant business ) of the council in accordance with the competitive neutrality principle. Note — See sections 47 and 48 of the Act. 8 Reforming a significant business (1) The council must identify and assess each new significant business for possible reform. (2) If the council decides to reform the significant business, the reform must involve— (a) applying full cost pricing to the significant business, that is, pricing the goods and services that are provided by the business entity on a commercial basis; or (b) if the significant business is to be reformed by being commercialised—creating a commercial business unit within the council to conduct the business; or (c) if the significant business is to be reformed by being corporatised—creating a new corporate entity independent of the council to conduct the business. Page 12 Reprint 1 effective 1 July 2010

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 2 Identifying significant businesses for reform [s 9] Part 2 Identifying significant businesses for reform Division 1 Identifying significant business for reform 9 Thresholds for significant businesses—Act, s 47(4)(b) (1) This section prescribes for section 47(4)(b) of the Act the threshold that a business activity must meet to be a significant business. (2) A business activity that has expenditure of at least $23.6m for the financial year starting on 1 July 2009 is a type 1 significant business for the financial year. (3) A business activity, other than a type 1 significant business, that has expenditure of at least $7.9m for the financial year starting on 1 July 2009 is a type 2 significant business for the financial year. (4) The Minister must consider each threshold each financial year and amend the threshold to reflect changes to the actual or estimated cost of living and applicable accounting systems. (5) The threshold, as amended, for the significant business must be the projected expenditure for the activities to the end of the financial year. (6) Before amending the threshold, the Minister must consult with LGAQ Ltd. (7) The Minister must publish the threshold in the gazette in the financial year in which the threshold is decided. 10 Identifying significant business for reform—Act, s 49 (1) This section is about identifying new significant businesses for section 49 of the Act. Reprint 1 effective 1 July 2010 Page 13

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 2 Identifying significant businesses for reform [s 11] (2) The council must use the financial information for the previous financial year that was presented to the council’s budget meeting to identify each new significant business for the financial year. (3) The Minister may, by notice to the council, state additional matters the council must, or must not, consider when deciding whether a business activity is a significant business. Division 2 Assessing significant business for reform 11 What div 2 is about (1) This division expands on section 50 of the Act to explain how the council conducts a public benefit assessment of a significant business. (2) A public benefit assessment of a significant business is an assessment of a significant business. 12 Deciding how to conduct an assessment (1) The council must decide, by resolution, how to conduct an assessment of a significant business. Example — The council may decide the assessment must be conducted— (a) by the council or an external consultant; and (b) in conjunction with— (i) another local government that is conducting an assessment of a similar significant business; or (ii) an assessment of another significant business of the council. (2) The council’s resolution must state— (a) the way in which the council must conduct the assessment; and Page 14 Reprint 1 effective 1 July 2010

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 2 Identifying significant businesses for reform [s 13] (b) what will be included in the report on the assessment, including the matters mentioned in section 15(2); and (c) when the report must be considered by the council. 13 Consultation process for assessment The council must ensure an assessment of a significant business includes a consultation process. Example of a consultation process — A consultation process may involve— (a) giving notice of the assessment and inviting submissions about the assessment; and (b) a period for submissions to be received; and (c) direct consultation with interested parties; and (d) consideration of the submissions received about the assessment; and (e) publishing a draft assessment report for public comment before the report is finalised. 14 Public benefit assessment for type 1 and type 2 significant businesses (1) A public benefit assessment for a type 1 significant business must consider how the significant business should be conducted by reviewing the appropriateness of each of the following reforms for the activity— (a) full cost pricing for the activity; (b) commercialisation of the activity; (c) corporatisation of the activity. (2) A public benefit assessment for a type 2 significant business must consider how the significant business should be conducted by reviewing the appropriateness of each of the following reforms for the activity— (a) full cost pricing for the activity; (b) commercialisation of the activity; Reprint 1 effective 1 July 2010 Page 15

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 2 Identifying significant businesses for reform [s 15] (c) if the council decides, by resolution, it is appropriate for consideration—corporatisation of the activity. (3) A public benefit assessment for a type 1 or 2 significant business must also conclude whether or not and, if so, to what extent, the benefits that would be realised from implementation of the reforms mentioned in subsection (1) or (2) would outweigh the costs. 15 Reporting on an assessment (1) This section is about a report that the council must prepare about the assessment of a significant business (an assessment report ). (2) An assessment report must contain— (a) a recommendation on whether or not the benefit to the public outweighs the cost of applying the competitive neutrality principle to the significant business; and (b) details of the benefit and cost; and (c) if the council recommends the significant business be reformed—details of how the significant business should be reformed. (3) For example, the council may recommend that— (a) different parts of the significant business be reformed in different ways; or (b) the significant business be reformed using a series of reforms. Example — The council’s report may recommend that only part of a significant business be reformed, and that a series of reforms take place in the following order — • introduce full cost pricing for the significant business by 30 June 2011 • the significant business be commercialised by 30 June 2012 • the significant business be corporatised by 30 June 2013. Page 16 Reprint 1 effective 1 July 2010

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 2 Identifying significant businesses for reform [s 16] (4) The council must prepare the report before— (a) the end of the financial year in which the council identifies the new significant business; or (b) if the Minister has, within the financial year, agreed to a later day that is no later than 30 September in the next financial year—the later day. 16 Complying with guidelines (1) A public benefit assessment and the assessment report for the public benefit assessment must, to the extent it is reasonably practicable, comply with the assessment guidelines. (2) In this section— assessment guidelines means the document called ‘Local government competitive neutrality public benefit assessment guidelines’, held by the department. Editor’s note — A copy of the assessment guidelines is available on the department’s website. 17 Public notice of assessment report (1) The council must give notice of the assessment report to the public as soon as practicable after the council considers the report under section 50(6) of the Act. (2) The council must give notice by— (a) publishing the notice— (i) in a newspaper that is circulating generally in Brisbane; and (ii) on the council’s website; and (b) displaying the notice in a conspicuous place in the council’s public office, until the council decides whether or not to reform the significant business. Reprint 1 effective 1 July 2010 Page 17

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 2 Identifying significant businesses for reform [s 18] (3) The notice must state— (a) the council’s name; and (b) the day when the report was considered by the council at a council meeting; and (c) a summary of the recommendations in the report; and (d) the day, within 3 months after the report was considered by the council, when the council must decide whether or not to reform the significant business (the decision day ); and (e) that, until the decision day, members of the public may— (i) inspect the report at the council’s public office; or (ii) purchase the report at the council’s public office for the price stated in the notice. (4) Until the decision day, the council must ensure members of the public may inspect or purchase the report in the way explained in the notice. 18 Timetable for change (1) This section applies if the council, after conducting a public benefit assessment, decides to reform a significant business (a change ). (2) The council’s resolution under section 50(6)(b) of the Actmust contain a timetable for the change. (3) The timetable must provide for the change, or the first of a series of changes, to be completed by the end of the financial year that follows the financial year in which the activity was identified as a new significant business (the relevant period ). (4) If the change, or the first of the changes, is not completed in the relevant period, the council must, by resolution, amend the timetable to extend the period by no more than 1 year. Page 18 Reprint 1 effective 1 July 2010

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 3 Full cost pricing [s 19] (5) The council must state the reasons for the delay in completing the change, or the first of the changes, in the resolution. Part 3 Full cost pricing 19 What pt 3 is about (1) This part explains how the council applies full cost pricing to a significant business as part of the reform of the significant business. Note — A guide to help local governments apply full cost pricing, called ‘Full cost pricing in Queensland local government–a practical guide’, is available on the department’s website. (2) This part applies whether the reform is done by— (a) commercialisation; or (b) corporatisation. (3) This part expands on section 48 of the Act. 20 Full cost pricing (1) The council applies full cost pricing to a significant business by charging for goods or services at the full cost of providing the goods or services, subject to the following— (a) the pricing provisions; (b) the removal of any competitive advantage or disadvantage, whenever possible and appropriate; (c) if a competitive advantage or disadvantage can not be removed—the taking of the competitive advantage or disadvantage into account when pricing the goods or services. Reprint 1 effective 1 July 2010 Page 19

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 3 Full cost pricing [s 20] (2) A competitive advantage is an advantage a business entity conducting a significant business has over a private sector business because the council owns the significant business. (3) For example, a competitive advantage includes— (a) a financial advantage; and (b) a procedural advantage; and (c) a regulatory advantage. Examples of a financial advantage — A business entity conducting a significant business has a financial advantage if the business entity— • is exempt from paying a local government tax that a private sector business must pay; or • is charged a different government tax from the government tax that a private sector business is charged; or • is charged a lower rate of interest on a bank loan because the State guarantees the loan. Examples of a procedural advantage — A business entity conducting a significant business has a procedural advantage if the business entity— • does not have to supply the same amount of information under a government approval process as a private sector business; or • can access more information for a government approval process than a private sector business can access. Example of a regulatory advantage — A business entity conducting a significant business has a regulatory advantage if the business entity is exempt (completely or partly) from a government approval process that a private sector business must follow. (4) A competitive disadvantage is a disadvantage a business entity conducting a significant business suffers over a private sector business because the council owns the significant business. (5) For example, a competitive disadvantage includes a community service obligation. Page 20 Reprint 1 effective 1 July 2010

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 3 Full cost pricing [s 21] 21 Cost of community service obligations (1) This section applies when the council is deciding what to charge for goods or services provided in conducting a significant business. (2) The cost of carrying out community service obligations, less any revenue received from performing the obligations, must be treated as revenue for the significant business. 22 Community service obligations A community service obligation is an obligation the council imposes on a business entity to do something that is not in the commercial interests of the business entity to do. Example of a community service obligation — giving a price concession to a particular group of customers, including pensioners, seniors and students 23 Taking account of government taxes (1) A commercialised business unit or corporate entity that is applying full cost pricing to a significant business must comply with the tax equivalents manual. (2) The tax equivalents manual is a manual, issued by the Treasurer, about how a local government must account for tax equivalents. (3) A tax equivalent is an amount that is the equivalent to the advantage gained by a local government by not paying a tax the local government would be liable to pay if it were a private sector business. (4) A tax includes any charge, duty, fee, levy or rate payable under an Act of the Commonwealth or the State, including the Act. (5) The tax equivalents manual may, for example, provide for— (a) lodging tax returns; and Reprint 1 effective 1 July 2010 Page 21

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 4 Commercialisation [s 24] (b) assessing tax returns; and (c) rulings, including the application of rulings about taxes imposed under a Commonwealth Act; and (d) objections and appeals against assessments and rulings; and (e) the appointment of tax assessors. (6) The Treasurer must table a copy of each amendment of the tax equivalents manual in the Legislative Assembly within 14 sitting days after the amendment is made. Part 4 Commercialisation Division 1 Introduction 24 What pt 4 is about (1) This part is about the commercialisation of a significant business by the council. (2) This involves the council— (a) ensuring the significant business is conducted by a commercial business unit within the council, as required under division 2; and (b) keeping particular extra information, as required under division 3. Page 22 Reprint 1 effective 1 July 2010

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 4 Commercialisation [s 25] Division 2 Converting and creating commercial business units 25 Commercial business unit (1) As part of the commercialisation of a significant business, the council must— (a) if the significant business is being conducted by a business unit—convert the business unit to a commercial business unit; or (b) if the significant business is not being conducted by a business unit—create a commercial business unit and transfer the significant business to the commercial business unit. (2) A commercial business unit is a business unit that conducts business in accordance with the key principles of commercialisation. 26 What are the key principles of commercialisation The key principles of commercialisation , for a commercial business unit, are— (a) clarity of objectives, namely that the council— (i) gives the unit clear and non-conflicting objectives; and (ii) sets specific financial and non-financial performance targets for the significant business; and (iii) keeps activities relating to council policy formulation, or that are of a regulatory nature, separate from the unit, wherever possible; and (iv) clearly identifies the nature and extent of the community service obligations the unit must perform; and Reprint 1 effective 1 July 2010 Page 23

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 4 Commercialisation [s 26] (v) sets performance targets for the unit’s community service obligations; and (vi) separately costs the unit’s community service obligations; and (vii) appropriately compensates the unit for performing the community service obligations, and discloses details of the compensation to the public; and (b) management autonomy and authority, namely that— (i) the unit remains at arms-length to the council, in day-to-day operations; and (ii) the council gives the unit autonomy in day-to-day operations, subject to overarching monitoring; and (iii) any directions the council gives the unit to achieve non-commercial objectives are given in an open way; and (iv) the unit uses its best endeavours to ensure the unit meets its performance targets; and (c) accountability for performance, namely that— (i) the council monitors the unit’s performance against the performance targets; and (ii) the unit must generally be subject to the management framework of the council; and (iii) the unit complies with all laws the council must comply with; and (d) competitive neutrality, namely that the unit complies with the competitive neutrality principle by— (i) removing any competitive advantage or competitive disadvantage, wherever possible and appropriate; and (ii) promoting efficiency of the use of resources, to ensure markets are not unnecessarily distorted. Page 24 Reprint 1 effective 1 July 2010

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 4 Commercialisation [s 27] 27 Converting a business unit to a commercial business unit (1) The council must make the decision to convert a business unit to a commercial business unit by resolution. (2) The council converts a business unit to a commercial business unit by changing the way in which the business unit is conducted to agree with the key principles of commercialisation. 28 Creating a commercial business unit (1) The council must make the decision to create a commercial business unit by resolution. (2) The decision may be made in the same resolution the council makes to commercialise a significant business. (3) A commercial business unit may be created to conduct more than 1 significant business. Division 3 Corporate plan, operational plan and annual report 29 What div 3 is about This division is about the information the council must include in its corporate plan, operational plan or annual report if the council commercialises a significant business. Note — The City of Brisbane (Finance, Plans and Reporting) Regulation 2010 states additional information that must be included in a corporate plan, operational plan or annual report of the council. 30 Corporate plan The council’s corporate plan must include the following information for each commercial business unit— Reprint 1 effective 1 July 2010 Page 25

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 4 Commercialisation [s 31] (a) an outline of the objectives of the commercial business unit; (b) an outline of the nature and extent of the significant business the commercial business unit will conduct. 31 Operational plan (1) The council’s operational plan for a financial year must include an annual performance plan for each commercial business unit. (2) An annual performance plan for a commercial business unit is a document stating the following for the financial year— (a) the unit’s objectives; (b) the nature and extent of the significant business the commercial business unit is to conduct; (c) the unit’s financial and non-financial performance targets; (d) the nature and extent of the community service obligations the unit must perform; (e) the cost of, and funding for, the community service obligations; (f) the unit’s notional capital structure, and treatment of surpluses; (g) the unit’s proposed major investments; (h) the unit’s outstanding, and proposed, borrowings; (i) the unit’s policy on the level and quality of service consumers can expect; (j) the delegations necessary to allow the unit to exercise autonomy in its commercial activities; (k) the type of information that the unit’s reports to the council must contain. Page 26 Reprint 1 effective 1 July 2010

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 4 Commercialisation [s 32] (3) The council may omit information from the copies of the annual performance plan made available to the public if— (a) the information is of a commercially sensitive nature to the commercial business unit; and (b) the information is given to each of the council’s councillors. Note — See also section 173 (Use of information by councillors) of the Act. (4) The council may change an annual performance plan at any time before the end of the financial year. 32 Annual report (1) The council’s annual report for a financial year must include an annual operations report for each commercial business unit. (2) An annual operations report , for a commercial business unit, is a document that contains the following information for the previous financial year— (a) information that allows an informed assessment of the unit’s operations, including a comparison with the unit’s annual performance plan; (b) particulars of any changes made to the unit’s annual performance plan for the previous financial year; (c) particulars of the impact the changes had on the unit’s— (i) financial position; and (ii) operating surplus or deficit; and (iii) prospects; (d) particulars of directions the council gave the unit. Reprint 1 effective 1 July 2010 Page 27

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 5 Corporatising a significant business [s 33] Part 5 Corporatising a significant business Division 1 Introduction 33 What pt 5 is about (1) This part applies if the council decides, by a resolution under section 50(6)(b) of the Act, to corporatise a significant business of the council. (2) As part of the process of corporatising a significant business, the council must transfer the significant business to an interim entity before it is transferred to a corporate entity. (3) A corporate entity is not part of the council, but is a separate legal entity the council owns— (a) directly; or (b) indirectly, through another corporate entity. (4) A corporate entity may be created to acquire and conduct— (a) 2 or more businesses of the council; or (b) the businesses of the council and 1 or more local governments. (5) This part explains what the council must do to create a new corporate entity. Page 28 Reprint 1 effective 1 July 2010

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 5 Corporatising a significant business [s 34] Division 2 Corporatisation process Subdivision 1 Constitution and corporatisation plan 34 What this subdivision is about (1) This subdivision is about planning and preparing for corporatisation and, in particular, about the preparation and approval of— (a) a constitution; and (b) a corporatisation plan. (2) A constitution is a document setting out the strategic direction of the corporate entity, including— (a) the scope of the entity’s business activities, including any business activities outside Brisbane; and (b) the entity’s capital structure; and (c) accounting, commercial management and performance systems to be adopted by the entity; and (d) how the key principles of corporatisation are to be applied to the entity. Note — See section 51 for an explanation of the key principles of corporatisation. (3) A corporatisation plan is a document setting out the steps by which, and the basis on which, a significant business is to be corporatised, including— (a) the procedure, and a timetable, for doing the following, in readiness for when the corporate entity comes into existence— (i) preparing the constitution of the corporate entity; (ii) appointing a board for the corporate entity; Reprint 1 effective 1 July 2010 Page 29

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 5 Corporatising a significant business [s 35] (iii) deciding the amount of the corporate entity’s share capital, and issuing shares to its shareholder; (iv) valuing the assets and liabilities of the business entity conducting the significant business that the council will transfer to the corporate entity; and (b) any other matter the council states in the resolution for corporatising the significant business. 35 Committee to oversee corporatisation (1) The council must create a committee of the council (a corporatisation committee ) that is to— (a) prepare the constitution and corporatisation plan for approval by the council; and (b) ensure the approved constitution and approved corporatisation plan are implemented in a timely, efficient and effective way; and (c) report to the council on whether the approved constitution and approved corporatisation plan are implemented in a timely, efficient and effective way. (2) When the council appoints persons as the members of the corporatisation committee, the council must ensure the persons have the range of skills necessary to corporatise the significant business. (3) A councillor, or employee of the council, may be appointed under subsection (2). (4) However, the total number of councillors and employees must not, at any time, be more than half of the members of the corporatisation committee. (5) The corporatisation committee is automatically disbanded when the corporate entity comes into existence. Page 30 Reprint 1 effective 1 July 2010

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 5 Corporatising a significant business [s 36] 36 Preparing constitution and corporatisation plan (1) The corporatisation committee must prepare a constitution and corporatisation plan for approval by the council. (2) The council may give directions to the corporatisation committee about the preparation of the constitution and corporatisation plan. (3) For example, the council may require the corporatisation plan to contain a timetable for doing the following— (a) identifying any existing business activities of a policy formulation or regulatory nature; (b) identifying options for how those activities could remain within the council; (c) identifying any community service obligations of the corporate entity; (d) costing any community service obligations of the corporate entity. 37 Approving constitution and corporatisation plan (1) The corporatisation committee must give the constitution and corporatisation plan to the council for approval. (2) The council may request the committee to amend the constitution and corporatisation plan before the council approves the constitution or corporatisation plan. (3) The corporatisation committee must comply with the council’s request. (4) The council’s decision to approve the constitution or corporatisation plan must be made by a resolution. 38 Amending constitution and corporatisation plan (1) The council may, by resolution, amend a constitution or corporatisation plan the council has approved. Reprint 1 effective 1 July 2010 Page 31

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 5 Corporatising a significant business [s 39] (2) The amendment may be made before or after the corporate entity is corporatised. 39 Public access to constitution and corporatisation plan (1) The council must ensure the public may inspect or purchase a copy of an approved constitution or approved corporatisation plan at the council’s public office. (2) The council may decide, by resolution, to omit information from the copies of the constitution and corporatisation plan that are to be made public if— (a) the information is of a commercially sensitive nature to the corporate entity; and (b) the information is given to each councillor. Note — See also section 173 (Use of information by councillors) of the Act. 40 Expiry of corporatisation plan (1) The corporatisation plan expires when the shareholder approves the first statement of corporate intent of the corporate entity. (2) However, the expiry of the corporatisation plan does not affect the previous operation of— (a) the corporatisation plan; or (b) anything started or done under the corporatisation plan. Page 32 Reprint 1 effective 1 July 2010

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 5 Corporatising a significant business [s 41] Subdivision 2 Interim entity 41 What this subdivision is about This subdivision is about planning and preparing for corporatisation and, in particular, about the establishment of an interim entity. 42 Establishment of interim entity (1) As part of the process of corporatisation, the council may, by resolution, bring an interim entity into existence. (2) The resolution must state— (a) the name of the interim entity to be created to conduct the significant business; and (b) whether the interim entity is to be owned by— (i) the council; or (ii) another corporate entity the council owns; and (c) the responsibilities of the interim entity. (3) The interim entity comes into existence when the local government’s resolution takes effect. Note — See section 115 for when a resolution takes effect. 43 Resolution for interim entity (1) The council may, by resolution (an interim entity resolution ), provide for anything that is necessary or convenient for an interim entity. (2) For example, the interim entity resolution may provide for— (a) particular assets or liabilities of the council to be transferred to the interim entity; and Reprint 1 effective 1 July 2010 Page 33

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 5 Corporatising a significant business [s 44] (b) the interim entity’s payment for the assets, including, for example— (i) a debt the interim entity owes to the council; and (ii) how to decide the amount of the payment; and (iii) changing the amount of a payment, whether before or after the interim entity comes into existence; and (c) the rights of any council employees who are to become employees of the interim entity, including, for example, the positions the employees are to hold in the interim entity; and (d) the legal documents the interim entity becomes a party to, in place of a named person, including, for example— (i) legal documents under which an amount is payable; or (ii) legal documents under which property is being transferred; and (e) the proceedings the interim entity becomes a party to, in place of a named person. (3) A resolution under subsection (2)(c) has effect despite section 46. (4) The interim entity resolution must state when it comes into effect. 44 Interim board of directors for interim entity (1) The council may, by resolution, decide— (a) that its interim entity is to have an interim board; and (b) the role of the interim board. (2) The council must appoint the directors of the interim board. (3) However, no more than half of the directors of the interim board may be councillors or employees of the council. (4) On the interim entity becoming a corporate entity— Page 34 Reprint 1 effective 1 July 2010

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 5 Corporatising a significant business [s 45] (a) the interim board ceases to exist; and (b) the directors on the interim board go out of office. 45 Application of particular provisions about directors and executives to interim entities Sections 53 to 62 apply to an interim entity, with necessary changes, as if— (a) the interim entity were a corporate entity; and (b) its interim board of directors were the corporate entity’s board; and (c) a director of the interim entity were a director of a corporate entity; and (d) the chief executive officer of the interim entity were the chief executive officer of a corporate entity. 46 Assistance to interim entities (1) An interim entity may enter into, and give effect to, a work performance arrangement with the chief executive officer of the council. (2) A work performance arrangement is an arrangement under which an employee of the council performs work for the interim entity. 47 Share capital and issue of shares (1) The council may, by resolution, provide that, on a stated day before an interim entity becomes a corporate entity, the entity is taken to have a share capital of a stated amount. (2) Before becoming a corporate entity, the interim entity must— (a) apply the part of its capital the council directs in paying up, in full, shares in itself; and Reprint 1 effective 1 July 2010 Page 35

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 5 Corporatising a significant business [s 48] (b) as soon as practicable, issue the shares paid up under paragraph (a). (3) If the interim entity does not have an interim board of directors, the council may apply the part of the capital and issue the shares on the entity’s behalf. (4) The council may, by resolution, vary the share capital of an interim entity. (5) Sections 74 to 76 apply to an interim entity, with any necessary changes, as if— (a) the interim entity were a corporate entity; and (b) the share capital of the interim entity were the share capital of a corporate entity. (6) The council may, by notice to the interim entity, give directions about the issue, holding and transfer of shares paid up under subsection (2). (7) The interim entity must ensure the directions are complied with. Subdivision 3 Resolution for corporatisation 48 What sdiv 3 is about This subdivision is about how the council brings a corporate entity into existence. 49 Resolution to bring a corporate entity to life (1) The council must make the decision to bring a corporate entity into existence by resolution. (2) However, the council may make the resolution only if satisfied that, when the resolution takes effect— (a) the corporate entity will be immediately ready to conduct the significant business; and Page 36 Reprint 1 effective 1 July 2010

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 6 Corporate entities [s 50] (b) the corporate entity will immediately have— (i) a board; and (ii) share capital and issued shares. (3) The resolution must state— (a) the name of the corporate entity to be created to conduct the significant business; and (b) whether the corporate entity’s shareholder is— (i) for an entity other than a subsidiary corporate entity—the council, with or without other local governments; or (ii) for a subsidiary corporate entity—another corporate entity of which the council is the shareholder; and (c) the responsibilities of the corporate entity. (4) The resolution may provide for anything that is necessary or convenient to corporatise the significant business. (5) The corporate entity comes into existence when the local government’s resolution takes effect. Note — See section 115 for when a resolution takes effect. Part 6 Corporate entities Division 1 Key principles of corporatisation 50 Application of key principles of corporatisation The shareholder must ensure the corporate entity is conducted in accordance with the key principles of corporatisation. Reprint 1 effective 1 July 2010 Page 37

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 6 Corporate entities [s 51] 51 What are the key principles of corporatisation The key principles of corporatisation , for a corporate entity, are— (a) clarity of objectives, namely that— (i) the shareholder gives the entity clear and non-conflicting objectives; and (ii) the shareholder sets specific financial and non-financial performance targets for the significant business the entity conducts; and (iii) the shareholder keeps any activities relating to council policy formulation, or that are of a regulatory nature, separate from the entity, wherever possible; and (iv) the shareholder clearly identifies the nature and extent of any community service obligations the entity must perform; and (v) the shareholder sets performance targets for the entity’s community service obligations; and (vi) the shareholder, or entity, separately costs the entity’s community service obligations; and (vii) the shareholder appropriately compensates the entity for performing the community service obligations, and discloses details of the compensation to the public; and (b) management autonomy and authority, namely that— (i) the council gives the entity autonomy, and the authority to make commercial decisions for its business activities; and (ii) procedures for strategic monitoring of the entity replace the council’s power to give the entity directions about its business activities; and (iii) the council exercises, in an open way, a power under the Act to give the entity directions; and Page 38 Reprint 1 effective 1 July 2010

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 6 Corporate entities [s 52] (iv) the role of the shareholder is clearly defined; and (v) the board uses its best endeavours to ensure the entity meets its performance targets; and (c) accountability for performance, namely that— (i) the board is accountable to the shareholder; and (ii) the entity’s statement of intent is the basis for accountability; and (iii) the shareholder monitors the entity’s performance against the performance targets; and (iv) monitoring by the shareholder replaces the monitoring that listed corporations are subject to (under the Corporations Act, for example); and (d) competitive neutrality, namely that the entity complies with the competitive neutrality principle by— (i) removing any competitive advantage or competitive disadvantage, wherever possible and appropriate; and (ii) promoting efficiency of the use of resources, to ensure markets are not unnecessarily distorted; and (iii) if the entity has a monopoly or a near monopoly—considering whether special monitoring is necessary to prevent any abuse of power. Division 2 Directors and employees of a corporate entity Subdivision 1 Introduction 52 What div 2 is about (1) This division is about— Reprint 1 effective 1 July 2010 Page 39

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 6 Corporate entities [s 53] (a) the directors on the board of the corporate entity, including— (i) the appointment conditions of the directors; and (ii) meetings and other business of the board; and (b) the employees of a corporate entity, including the employment conditions of the employees. (2) The employees of a corporate entity are— (a) the chief executive officer of the corporate entity; and (b) the other employees of the corporate entity. (3) The appointment conditions include conditions relating to— (a) term of appointment; and (b) ending an appointment. (4) The employment conditions include conditions relating to— (a) wages; and (b) term of employment; and (c) ending employment. Subdivision 2 Board of directors 53 Establishing board (1) A corporate entity must have a board. (2) The board’s responsibilities include— (a) using its best endeavours to ensure the corporate entity performs its responsibilities in an economical, effective and efficient way; and (b) using its best endeavours to ensure the corporate entity acts in accordance with, and achieves, its statement of corporate intent; and Page 40 Reprint 1 effective 1 July 2010

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 6 Corporate entities [s 54] (c) accounting to the corporate entity’s shareholder for the corporate entity’s performance. 54 Appointing directors to the board (1) This section is about appointing directors to the board of a corporate entity. (2) A board must consist of at least 5 directors. (3) The council must, in readiness, appoint the directors to the board before the corporate entity comes into existence. (4) After a corporate entity comes into existence, the shareholder is responsible for appointing the directors. (5) Whoever is appointing the directors must adopt an appropriate appointment process. (6) The appointment process must at least provide for the following— (a) identifying the key attributes required of a director; (b) calling for applications through public advertising and canvassing suitable persons; (c) evaluating applications by using independent expertise; (d) interviewing the short-listed persons by a nominated group that is assisted by independent experts; (e) appointing the most suitable applicants as directors. (7) A person is eligible to be a director if the person has the ability to contribute to— (a) the corporate entity’s commercial performance; and (b) the corporate entity’s implementation of its statement of corporate intent. (8) However, a person is not eligible to be a director if the person is prohibited from managing a corporation, under the Corporations Act, section 201B. (9) A director may be appointed for a term of up to 5 years. Reprint 1 effective 1 July 2010 Page 41

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 6 Corporate entities [s 55] (10) Whoever is appointing a director must decide the director’s appointment conditions, including whether the director is entitled to receive any payment— (a) for being a director; or (b) on, or in connection with, retirement or ending of the appointment. (11) Payment includes any benefit, interest in property, or other valuable consideration. 55 Appointing the chairperson and deputy chairperson (1) The shareholder must appoint a director to be the chairperson of the board. (2) The shareholder may appoint a director to be the deputy chairperson of the board. (3) A deputy chairperson acts for the chairperson whenever— (a) there is a vacancy in the office of the chairperson; or (b) the chairperson is unable to perform the chairperson’s duties (while on sick leave, for example). (4) The chairperson or deputy chairperson may resign as chairperson or deputy chairperson but remain a director. 56 Appointing an acting director The shareholder may appoint a person to act as a director during any period when a director— (a) is absent from duty; or (b) can not, for another reason, perform the duties of a director. 57 Ending a director’s appointment (1) A person stops being a director if— Page 42 Reprint 1 effective 1 July 2010

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 6 Corporate entities [s 58] (a) the person gives a signed notice of resignation to the shareholder; or (b) for a person who was a councillor or employee of the council when the person was appointed as a director—the person stops being a councillor or employee; or (c) the person is prohibited from managing a corporation, under the Corporations Act, section 201B; or (d) the shareholder ends the director’s appointment. (2) The shareholder may end a director’s appointment— (a) at any time; and (b) for any reason, or for no reason. Subdivision 3 Meetings and other business of the board 58 Meetings of the board (1) This section sets out the way in which the board must conduct its meetings. (2) The board must decide the time when, and the place where, a meeting must be held. (3) However, the presiding officer— (a) may call a meeting, at any time, by giving the other members at least 7 days notice of the meeting; and (b) must call a meeting if a majority of the directors asks the presiding officer to do so. (4) The presiding officer is— (a) the chairperson; or (b) if the chairperson is absent—the deputy chairperson; or Reprint 1 effective 1 July 2010 Page 43

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 6 Corporate entities [s 59] (c) if the chairperson and deputy chairperson are absent—a director who is chosen by the other directors. (5) The presiding officer must preside over the meetings of the board. (6) The board may conduct business at a meeting only if there are at least 2 directors present who are entitled to vote on each question before the meeting. (7) A question before a meeting must be decided by a majority of the members who are present and voting at the meeting. (8) If the voting is tied, the presiding officer also has a casting vote. (9) The board must keep minutes of its meetings. (10) The board may conduct its meetings in any way it considers appropriate, provided it— (a) allows contemporaneous communication between the directors, including, for example, by phone or teleconferencing; and (b) is not contrary to this section. 59 Resolution without a meeting of the board (1) This section is about how a resolution can be passed without the board holding a meeting. (2) A resolution may be passed if a majority of directors sign a document that states the directors are in favour of the resolution contained in the document. (3) For subsection (2), 2 or more separate documents containing a statement in identical terms, each of which is signed by 1 or more directors, are taken to form a single document. (4) The resolution is taken to have been passed on the day when the director who casts the majority vote signs the document. Page 44 Reprint 1 effective 1 July 2010

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 6 Corporate entities [s 60] (5) As soon as practical after the resolution is passed, the board must give a copy of the resolution to each director on the board. 60 Delegation by board A board may, by resolution, delegate its powers to— (a) a director; or (b) a committee of the board; or (c) the chief executive officer of the corporate entity; or (d) an appropriately qualified employee of the corporate entity. Subdivision 4 Chief executive officer 61 Chief executive officer (1) A corporate entity must have a chief executive officer. (2) The chief executive officer is responsible for managing the corporate entity, under the direction of the board. (3) Anything done by the chief executive officer in the name of, or for, the corporate entity is taken to have been done by the corporate entity. (4) The chief executive officer may delegate the chief executive officer’s powers to a qualified employee of the corporate entity. (5) A qualified employee is an employee who the chief executive officer considers has the qualifications, experience or standing appropriate to exercise the power. (6) However, the chief executive officer’s power to delegate is subject to a direction of the board. Reprint 1 effective 1 July 2010 Page 45

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 6 Corporate entities [s 62] 62 Appointing the chief executive officer (1) The council must, in readiness, appoint the chief executive officer before a corporate entity comes into existence. (2) The employment of the chief executive officer starts when the corporate entity comes into existence. (3) After a corporate entity comes into existence, the corporate entity’s board is responsible for appointing the chief executive officer. (4) Whoever is appointing a chief executive officer must decide the chief executive officer’s employment conditions. (5) This section does not apply if the interim entity for the council has an interim board of directors. 63 Appointing an acting chief executive officer The board may appoint a person to act as the chief executive officer when the chief executive officer— (a) is absent from duty; or (b) can not, for another reason, perform the duties of chief executive officer. 64 Ending the chief executive officer’s appointment (1) A person stops being the chief executive officer if— (a) the person gives a signed notice of resignation to the board; or (b) the board ends the chief executive’s appointment. (2) The board may end the chief executive’s appointment— (a) at any time; and (b) for any reason, or for no reason. (3) However, this does not affect any rights to compensation the chief executive officer may be entitled to under the chief executive officer’s appointment or employment conditions. Page 46 Reprint 1 effective 1 July 2010

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 6 Corporate entities [s 65] Subdivision 5 Other employees 65 What sdiv 5 is about This subdivision is about the employees of a corporate entity who are not the chief executive officer of the corporate entity. 66 Appointing other employees (1) The chief executive officer may engage the number of employees of the corporate entity the chief executive officer considers are necessary to conduct the corporate entity, including to carry out its business activities and perform any community service obligations. (2) The corporate entity must decide the employment conditions not already decided under an industrial instrument for the other employees. Subdivision 6 Provisions applying to all employees 67 Corporate entity super schemes (1) A corporate entity may establish, amend or take part in a super scheme for all its employees. (2) A super scheme is a superannuation scheme that complies with the requirements of the Commonwealth Super Act. 68 Super scheme (1) This section applies to an employee of a corporate entity who, immediately before being employed by the corporate entity, was— (a) employed by the council; and (b) a member of the council’s super scheme. Reprint 1 effective 1 July 2010 Page 47

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 6 Corporate entities [s 69] (2) The employee continues to be a member of the council’s super scheme as if the employee were still an employee of the council. (3) The corporate entity must contribute to the council’s super scheme as if the corporate entity were the council. (4) If the corporate entity establishes its own super scheme, the employee may choose— (a) to stop being a member of the council’s super scheme; and (b) to become a member of the corporate entity’s super scheme. 69 Preserving entitlements of council employees (1) This section applies to a person who— (a) was employed by the council in a permanent or full-time capacity; and (b) leaves the council to become an employee of a corporate entity, in a permanent or full-time capacity, within 1 year after the corporate entity comes into existence. (2) The end of the person’s employment with the council must not be treated as a termination of the person’s employment under— (a) a redundancy; or (b) voluntary early retirement; or (c) another similar arrangement. (3) If, when the person leaves the council, the person has accrued leave entitlements, the leave entitlements must be treated as if the leave entitlements were accrued during the person’s employment with the corporate entity. (4) If the person becomes entitled to any entitlement because of the length of the person’s employment with the corporate Page 48 Reprint 1 effective 1 July 2010

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 6 Corporate entities [s 70] entity, the person’s employment with the council must be treated as employment with the corporate entity. (5) However, a person can not claim or receive benefits more than once for the same entitlement. 70 Work performance arrangements (1) This section is about work performance arrangements between a corporate entity and a public entity. (2) A public entity is— (a) a department; or (b) an authority of the State; or (c) the council; or (d) another local government; or (e) the Commonwealth or another State; or (f) an authority of the Commonwealth or another State. (3) A corporate entity may enter into, and give effect to, an arrangement (a work performance arrangement ) under which— (a) an employee of the corporate entity performs work for, or duties in, the public entity; or (b) an employee of the public entity performs work for, or duties in, the corporate entity. (4) A work performance arrangement must be made with the chief executive officer, or the appropriate authority, of the other public entity. (5) A work performance arrangement may make provision for all matters necessary or convenient to be provided under the arrangement. Reprint 1 effective 1 July 2010 Page 49

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 3 Business reform Part 6 Corporate entities [s 71] 71 Who are not employees (1) The shareholder or a shareholder delegate is not an employee of a corporate entity. (2) The employees of a corporate entity are not employees of the council. (3) A person who is both a councillor or employee of the council and a director of a corporate entity at the same time, is an employee of the corporate entity only while the person is acting in the capacity of a director of the corporate entity. Subdivision 7 Dual service 72 Dual service for directors of corporate entities (1) A person may be both of the following at the same time, only if the significant business is being conducted by a subsidiary of the corporate entity— (a) a director of the corporate entity; (b) a councillor or employee of the council or another local government. (2) However, no more than half of the directors of the corporate entity may be councillors or employees of the council or other local government. (3) The corporate entity must pay the council the remuneration of a person who is a director, unless the council decides otherwise. (4) Subject to subsection (5), a person may be, at the same time— (b) a director of a corporate entity; and (a) the chief executive officer of the corporate entity. (5) For subsection (4), the chief executive officer of the corporate entity can not also be a councillor or employee of the council. Page 50 Reprint 1 effective 1 July 2010

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 5 Competitive neutrality complaints Part 4 Accreditation [s 153] (ii) resolves, under section 51(7) of the Act, to apply the code of competitive conduct. 153 Purpose of accreditation The purpose of accreditation is to remove doubt for a business entity conducting a business activity about whether it conducts the business activity in accordance with the competitive neutrality principle. 154 Business activities to which the code of competitive conduct applies (1) This section applies if the code of competitive conduct applies to the conduct of a business activity. (2) For deciding if the business entity conducts the business activity in accordance with the competitive neutrality principle, the competitive neutrality principle includes the requirements of the code of competitive conduct, other than the requirements about financial reporting under the LocalGovernment(BeneficialEnterprisesandBusinessActivities)Regulation 2010 , section 121 or 122. Division 2 Process before investigation 155 Applying for accreditation (1) A business entity conducting a business activity may, in the form approved by QCA, apply to QCA for accreditation of the business activity. (2) QCA may investigate the application to decide whether to accredit the business activity. 156 Notice before investigation starts (1) QCA must give notice of the investigation to— Reprint 1 effective 1 July 2010 Page 95

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 5 Competitive neutrality complaints Part 4 Accreditation [s 157] (a) the applicant; and (b) the council; and (c) if the entity conducting the business activity is a corporate entity—the corporate entity; and (d) another person, if QCA considers it is appropriate. (2) The notice must— (a) state QCA’s intention to conduct the investigation; and (b) invite the person given the notice to make written or, if QCA approves, oral submissions about the matter to QCA; and (c) state a reasonable period for making the submissions; and (d) state QCA’s address. (3) QCA must give the notice before the investigation starts. Division 3 Process for investigation 157 Procedures for investigations The QCA Act, parts 6 and 9 and sections 236 to 241 and 243, with necessary changes, apply to QCA’s investigation under this part. 158 Matters QCA must consider (1) This section is about the matters QCA must consider when investigating an application for accreditation. (2) QCA must consider the competitive neutrality criteria. (3) QCA may consider any other matter relevant to the investigation, including, for example, the interests of— (a) consumers; or Page 96 Reprint 1 effective 1 July 2010

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 5 Competitive neutrality complaints Part 4 Accreditation [s 159] (b) a class of consumer. (4) QCA may inform itself about a matter in any way it considers appropriate, including, for example, by consulting with other persons. 159 Decision on application (1) QCA must consider each application for accreditation it receives, and grant, or refuse to grant, the accreditation. (2) QCA may grant the accreditation only if it is satisfied the business activity is being conducted in a way that complies with the competitive neutrality principle. (3) QCA may refuse to grant the accreditation if— (a) QCA sought further information about the application under an investigation notice; and (b) the applicant has failed, without reasonable excuse, to give QCA the information within the period stated in the investigation notice. (4) QCA must not, when deciding whether to accredit a business activity, decide that— (a) the business activity has a competitive advantage solely because the council owns the business entity; or (b) the business activity suffers a competitive disadvantage solely because the council owns the business entity. 160 Conditions on grant of accreditation (1) If QCA decides to grant an accreditation, the accreditation is subject to— (a) a condition that the business entity must continue to comply with the competitive neutrality principle in conducting the business activity; and (b) a condition that the business activity must inform QCA of a change in the structure or operations of the business Reprint 1 effective 1 July 2010 Page 97

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 5 Competitive neutrality complaints Part 4 Accreditation [s 161] activity that may affect the business entity’s continued compliance with the competitive neutrality principle. (2) QCA may impose other conditions it considers are necessary and reasonable for ensuring compliance with the accreditation. (3) For example, a condition may require the business entity to give QCA relevant information— (a) from time to time, at reasonable intervals; or (b) at stated reasonable times. (4) Relevant information is information that is necessary and reasonable to enable QCA to decide whether it is appropriate to maintain the accreditation. Division 4 Process after investigation 161 Notice of decision (1) If QCA decides not to grant the accreditation, QCA must give the applicant a notice stating— (a) the decision; and (b) the reasons for the decision. (2) If QCA decides to grant an accreditation, QCA must— (a) give notice to— (i) the applicant; and (ii) the council; and (b) publish the notice in the gazette. (3) The notice under subsection (2) must state— (a) the decision; and (b) if QCA imposes a condition on the accreditation— (i) the condition; and Page 98 Reprint 1 effective 1 July 2010

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 5 Competitive neutrality complaints Part 4 Accreditation [s 162] (ii) the reasons for the condition; and (c) the period of accreditation that is not more than 2 years. (4) The accreditation remains in force until the earlier of the following— (a) the end of the period of accreditation stated in the notice; (b) the accreditation is surrendered; (c) the accreditation is cancelled. 162 Surrendering accreditation (1) A business entity may surrender accreditation of a business activity by giving notice of surrender to QCA. (2) The surrender takes effect— (a) on the day notice is given to QCA; or (b) if a later day of effect is stated in the notice—the later day. 163 Cancelling accreditation (1) Subject to subsections (2) to (4), QCA may cancel the accreditation of a business activity if the business entity contravenes a condition of the accreditation. (2) If QCA believes the business entity has contravened a condition, it must give the business entity a notice that— (a) states QCA proposes to cancel the accreditation because QCA believes the business entity has contravened a condition; and (b) outlines the facts and circumstances forming the basis for QCA’s belief; and (c) invites the business entity to show in writing within the reply period why the accreditation should not be cancelled. Reprint 1 effective 1 July 2010 Page 99

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 5 Competitive neutrality complaints Part 5 Miscellaneous provisions [s 164] (3) QCA may cancel the accreditation only if, after considering all written representations made within the reply period, QCA still believes the grounds exist to cancel the accreditation. (4) The reply period is the period ending not less than 14 days, and not more than 21 days, after QCA gives the business entity the notice. (5) QCA must give notice stating its decision about cancelling the accreditation and the reasons for the decision to— (a) the council; and (b) if a corporate entity conducts the business activity—the corporate entity. (6) The decision takes effect on— (a) the day QCA gives notice under subsection (5); or (b) if a later day of effect is stated in the notice—the later day. 164 List of accreditations QCA must keep a list of all accreditations granted and in force under this part available for inspection by any person. Editor’s note — At the commencement of this section, the list of accreditations may be inspected at QCA’s office at 12 Creek Street, Brisbane and is available on QCA’s website at < Part 5 Miscellaneous provisions 165 Register (1) The council must establish a register of business activities to which the competitive neutrality principle applies. (2) The register must state the following— Page 100 Reprint 1 effective 1 July 2010

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 5 Competitive neutrality complaints Part 5 Miscellaneous provisions [s 166] (a) business activities to which the council has applied the competitive neutrality principle, and the day from which the competitive neutrality principle applied to each business activity; (b) business activities to which the code of competitive conduct applies, and the date from which the code applied to each business activity; (c) business activities accredited; (d) business activities for which QCA is the referee for a competitive neutrality complaint; (e) a list of— (i) current investigation notices for competitive neutrality complaints and references to QCA the council has received; and (ii) the council’s decisions on the referees’ recommendations on the competitive neutrality complaints; and (iii) the council’s decisions on QCA’s recommendations on references relating to competitive neutrality complaints. 166 Annual report to include summary of complaints and decisions by council The council must include the following information in its annual report for each financial year— (a) a summary of— (i) investigation notices for competitive neutrality complaints given in the year; and (ii) reports on references made to QCA that are received by the council in the year; (b) a summary of the council’s decisions in the year on— Reprint 1 effective 1 July 2010 Page 101

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Chapter 6 Transitional provision [s 167] (i) the referee’s recommendations on the complaints; and (ii) QCA’s recommendations on the references; (c) a list of the business activities accredited. Chapter 6 Transitional provision 167 New type 1 or 2 business activities (1) This section applies if the council has, before the commencement of this section, given the Minister written notice under the repealed Act, section 548 of a business activity that is a new type 1 or 2 business activity for the financial year starting on 1 July 2010. (2) The repealed Act, chapter 8, part 6 continues to apply to the new type 1 or 2 business activity as if the Act had not commenced. (3) In this section— new type 1 or 2 business activity means a new type 1 or 2 business activity under the repealed Act, section 545. repealed Act means the repealed Local Government Act 1993 . Page 102 Reprint 1 effective 1 July 2010

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Schedule 1 Schedule 1 Pricing provisions schedule 2, definition pricing provisions 1 Definitions for sch 1 In this schedule— relevant activity , of the council, means— (a) a significant business of the council to which full cost pricing applies; or (b) a business activity of the council to which the code of competitive conduct applies. 2 Required revenue for deciding charges In deciding charges to persons for goods or services provided in conducting a relevant activity, the council must ensure the projected total revenue from conducting the activity is enough to cover the projected total costs of conducting the activity for— (a) if the relevant activity is an activity to which the code of competitive conduct applies—a period of more than 1 year but not more than 5 years; or (b) otherwise—each financial year in which the activity is conducted. 3 Different charges for commercial reasons (1) A charge may be decided for providing particular goods or services in conducting a relevant activity that is, for commercial reasons, an appropriate charge for the goods or services provided. (2) For subsection (1), a charge is, for commercial reasons, an appropriate charge if it could reasonably be charged if the goods or services were provided by an entity conducting the Reprint 1 effective 1 July 2010 Page 103

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Schedule 1 relevant activity with the primary object of making a profit from conducting the activity. 4 Total costs of conducting relevant activity (1) For this schedule, the total costs of conducting a relevant activity include each of the following— (a) the operational costs incurred in conducting the activity; (b) administrative and overhead costs; (c) the cost of resources used in conducting the activity; (d) depreciation; (e) equivalents for Commonwealth or State taxes the council is not liable to pay because it is a local government; (f) equivalents for the cost of funds advantage the council obtains over commercial interest rates because of State guarantees on borrowings; (g) return on capital. (2) The total costs must be adjusted for other advantages and disadvantages of the council that are not eliminated. (3) Subsection (2) does not apply in relation to a relevant activity to which commercialisation applies. 5 Allocation of administrative and overhead costs For section 4(1)(b), the council must make a reasonable allocation of its administrative and overhead costs to each relevant activity, having regard to all of the council’s relevant activities. 6 Cost of resources used in conducting activity (1) For section 4(1)(c), if resources are provided by or to the council for conducting an activity, the cost of resources used in conducting the activity may be taken to be— Page 104 Reprint 1 effective 1 July 2010

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Schedule 1 (a) if the resources have an identifiable cost—the cost of the resources; or (b) if paragraph (a) does not apply and the resources are readily available on the open market—the price at which the resources can be obtained on the market. (2) If subsection (1)(b) applies, the council must ensure the terms on which the cost is based are similar to the terms on which they are made available in conducting the relevant activity. 7 Depreciation (1) For section 4(1)(d), depreciation of an asset used in conducting a relevant activity must be based on the depreciable amount for the asset allocated over its useful life. (2) However, the council may decide to base the depreciation on an amount decided by the council to be appropriate in the circumstances. 8 Equivalent amounts for taxes council is not liable to pay (1) This section applies for section 4(1)(e) for working out the equivalent amount for a Commonwealth or State tax the council is not liable to pay because it is a local government. (2) The equivalent amount must be worked out— (a) for a tax to which a tax equivalents manual applies—by applying the general principles provided for in the manual; or (b) if paragraph (a) does not apply—by estimating the amount a private sector business conducting the relevant activity would calculate to be its liability to pay the tax. (3) Subsection (2)(a) does not, of itself, require the council to comply with a process or other requirement under the tax equivalents manual. (4) However, the council must keep, for 7 years from the day the equivalent amount is worked out, details of the calculations made in working out the equivalent amount. Reprint 1 effective 1 July 2010 Page 105

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Schedule 1 (5) This section does not apply for a relevant activity to which commercialisation applies. 9 Guarantees by State (1) This section applies for section 4(1)(f) in relation to a relevant activity that is a business activity to which the code of competitive conduct applies. (2) If the State guarantees repayment of a debt of the council attributed to the relevant activity, the council must, in conducting the activity, take account of amounts equivalent to the cost of funds advantage the council obtains over commercial interest rates because of the guarantee. 10 Return on capital (1) This section applies for section 4(1)(g). (2) The amount for the return on the capital used by the council in conducting a relevant activity must be decided using the rate at which, in the council’s opinion, a comparable private sector business conducting the activity would be able to obtain the capital in the market. (3) In deciding the rate under subsection (2), the council must have regard to the split the council considers appropriate, for the type of business activity, between equity and loan capital and the return appropriate to each. (4) However, the amount for the return on the capital used in conducting a business activity for the first year in which the business activity is a relevant activity may be the amount the council decides. (5) In this section— capital used in conducting a business activity means the total value, decided using an accepted accountancy method, of the assets used for the business activity less the liabilities attributable to the activity. Page 106 Reprint 1 effective 1 July 2010

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Schedule 2 Schedule 2 Dictionary section 4 accreditation means an accreditation granted by QCA under chapter 5, part 4. additional information see section 125(1). annual performance plan see section 31(2). annual report see section 98(1). appointment conditions see section 52(3). assessment , of a significant business, see section 11(2). assessment report see section 15(1). board , for a provision about a corporate entity, means the board of directors appointed for the entity. borrow includes— (a) obtain a financial benefit from— (i) a credit card; or (ii) issuing, endorsing or otherwise dealing in promissory notes; or (iii) drawing, accepting, endorsing or otherwise dealing in bills of exchange; or (iv) issuing, purchasing or otherwise dealing in securities; or (v) granting or taking a lease of any property for financing purposes; and (b) borrow in a foreign currency. business entity means— (a) the council to the extent it carries on the business activity, including a business unit of the council; or (b) a corporate entity. Reprint 1 effective 1 July 2010 Page 107

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Schedule 2 commercial business unit see section 25(2). Commonwealth tax means tax imposed under a Commonwealth Act. community service obligation see section 22. competitive advantage see section 20(2). competitive disadvantage see section 20(4). competitive neutrality criteria see section 130(3). complainant see section 123(2)(b)(i). constitution see section 34(2). corporate document see section 91(2). corporate plan see section 93. corporatisation committee see section 35(1). corporatisation plan see section 34(3). employment conditions see section 52(4). government taxes means taxes that are payable to the Commonwealth, a State or a local government. interim entity means a body corporate established under section 42. investigation notice see section 127(2). key principles of commercialisation see section 26. key principles of corporatisation see section 51. lease includes— (a) a licence, charter or hiring arrangement of property; and (b) an arrangement under which a person grants a right to use, operate or provide goods or services in relation to property to another person. legal document includes— (a) a contract, deed, agreement, arrangement, understanding or undertaking; and (b) a lease; and Page 108 Reprint 1 effective 1 July 2010

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Schedule 2 (c) a mortgage, charge or lien; and (d) a security; and (e) a guarantee, bond, power of attorney, bill of lading, negotiable instrument or order for the payment of money; and (f) a transfer, conveyance or other assurance; and (g) a mandate, instruction, notice, authority or order. main business activities see section 109(2). notice means a written notice. pricing provisions means the pricing provisions mentioned in schedule 1. private sector business means a business in the private sector. QCA means the Queensland Competition Authority established under the QCA Act. QCA Act means the QueenslandCompetitionAuthorityAct1997 . quarterly report see section 97. referee means a person who holds an appointment under section 124. reference , to QCA, means a reference made to QCA under chapter 5, part 3. reform , of a significant business, means to reform the business by— (a) commercialisation or corporatisation of the business; or (b) applying full cost pricing to the business. resolution , of a shareholder of a corporate entity or subsidiary of a corporate entity, means a resolution made by— (a) if the shareholder is the council or another local government—the council or other local government; or (b) if the shareholder is a corporate entity—the board of the corporate entity. Reprint 1 effective 1 July 2010 Page 109

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Schedule 2 salary includes allowances. security includes inscribed stock, debenture, bond, debenture stock, note and any other document creating, evidencing or acknowledging indebtedness, whether or not the document creates a charge on property. shareholder — (a) of a corporate entity, means any other entity to whom shares in the corporate entity were issued under section 75, or transferred under section 79; or (b) of a subsidiary of a corporate entity, means the corporate entity. shareholder delegate see section 76(1). significant business see section 7. standing includes an employee’s classification level. statement of corporate intent see section 92(1). subsidiary corporate entity means a corporate entity owned by another corporate entity. super scheme see section 67(2). tax see section 23(4). tax equivalent see section 23(3). tax equivalents manual see section 23(2). type 1 significant business see section 9(2). type 2 significant business see section 9(3). wages include a salary. Page 110 Reprint 1 effective 1 July 2010

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Endnotes Endnotes 1 Index to endnotes Page 2 Date to which amendments incorporated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .111 3 Key . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .111 4 Table of reprints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112 5 List of legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112 2 Date to which amendments incorporated This is the reprint date mentioned in the Reprints Act 1992, section 5(c). However, no amendments have commenced operation on or before that day. Future amendments of the City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 may be made in accordance with this reprint under the Reprints Act 1992, section 49. 3 Key Key to abbreviations in list of legislation and annotations Key AIA amd amdt ch def div exp gaz hdg ins lap notfd num o in c om orig p para prec pres prev Explanation = Acts Interpretation Act 1954 = amended = amendment = chapter = definition = division = expires/expired = gazette = heading = inserted = lapsed = notified = numbered = order in council = omitted = original = page = paragraph = preceding = present = previous Key (prev) proc prov pt pubd R[X] RA reloc renum rep (retro) rv s sch sdiv SIA SIR SL sub unnum Explanation = 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 Reprint 1 effective 1 July 2010 Page 111

City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 Endnotes 4 Table of reprints Reprints are issued for both future and past effective dates. For the most up-to-date table of reprints, see the reprint with the latest effective date. If a reprint number includes a letter of the alphabet, the reprint was released in unauthorised, electronic form only. Reprint No. 1 Amendments included none Effective 1 July 2010 Notes 5 List of legislation City of Brisbane (Beneficial Enterprises and Business Activities) Regulation 2010 SL No. 170 made by the Governor in Council on 1 July 2010 notfd gaz 1 July 2010 pp 921–2 ss 1–2 commenced on date of notification remaining provisions commenced 1 July 2010 (see s 2) exp 1 September 2020 (see SIA s 54) Note—The expiry date may have changed since this reprint was published. See the latest reprint of the SIR for any change. © State of Queensland 2012 Page 112 Reprint 1 effective 1 July 2010