2017-11-07 S&O Agenda - Attachment 1 to Item 10 - Annual Report 2016-17

Discretionary funds
Section 109 of the LG Act, defines discretionary funds as funds in the local government’s operating
fund that are:
 budgeted for community purposes, and
 allocated by a Councillor at the Councillor’s discretion.

There were no Councillor discretionary funds established during the period.

Beneficial enterprises
Section 39(3) of the LG Act defines a beneficial enterprise as an enterprise that a local government
considers is directed to benefiting, and can reasonably be expected to benefit, the whole or part of its
local government area.

Section 39(4) of the LG Act provides that a local government is conducting a beneficial enterprise if the
local government is engaging in, or helping, the beneficial enterprise.

Council did not engage in any beneficial enterprises during the period.

Business activities
A business activity is defined in Schedule 4 of the LG Act as “the trading in goods and services by the
local government”.

Council conducted the following business activities during the period:
 waste management, and
 holiday parks including the Boreen Point Campground, Noosa North Shore Beachfront Caravan
   Park and Noosa River Holiday Park.


Significant business activity
In accordance with threshold of expenditure and the methodology prescribed by ss. 19 and 20 of the
LG Regulation, Council’s waste management activity was considered a significant business activity
for the period.

Competitive neutrality
Council’s is committed to ongoing compliance with National Competition Policy principles and its
legislative obligations in this area. It is committed to ensuring that its business activities operate on a
level playing field with private businesses in the community.

Council ensures that the pricing practices for each business activity complies with the principles of full
cost pricing such that total revenue, inclusive of identified and measured community service obligations
and net of any advantages and disadvantages of public ownership, should aim to cover the following
elements:
 Operational and resource costs;
 Administration and overhead costs;
 Depreciation;
 Tax and debt equivalents; and
 Return on capital / return on cost.

During the period, there were no investigation notices provided to Council relating to competitive
neutrality complaints. Accordingly, The Queensland Competition Authority did not make any reportable
recommendations to Council in relation to a competitive neutrality complaint.


                                                                       Noosa Council | Annual Report 2016 - 2017
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