Meeting papers

SPECIAL MEETING                                                                         30 JUNE 2025




1. Business Activity Classification

Expenditure thresholds are published each financial year by the Department of State Development,
Infrastructure and Planning. Councils are required to determine if any of their activities deemed
competitive in nature are classified as either a significant business activity based on the definition
under the Local Government Regulation 2012, or a prescribed or smaller business activity when
implementing the Competitive Code of Conduct. The expenditure thresholds applicable for the
2025/26 financial year are as follows:
   •   $9.7 million for significant business activities; and
   •   $340,000 for Code of Competitive Conduct business activities.

2. Application to Identified Business Activities for the 2024/25 Financial Year

A review was undertaken in the 2024/25 financial year of all Council’s activities, for both the
expenditure thresholds and nature of activity to apply under national competition policy. Two of
Council’s activities have been identified as being competitive in nature and meeting the criteria and
relevant threshold levels for identification as business activities. The activities that have been
identified and reform levels to apply (based on the estimated expenditure in the financial year
immediately before the current financial year) are:


  Business Activity      Expenditure             Reform Level
 Waste Management        $21.7 million   Significant Business Activity
    Holiday Parks        $2.9 million    Code of Competitive Conduct


Council has reviewed the nature of the services and activities provided to the public, and the following
is noted regarding the reason for not applying the national competition policy to other activities that
meet the threshold:
   •   Community facilities, including aquatic, leisure, events, arts and respite centres provide a
       primarily community function. Whilst they generate fees and operate on a partial user pays
       system, they do not have the necessary full cost recovery and profit-making focus
   •   Cemeteries provide a primarily community function. Whilst they generate fees and operate
       on a partial user pays system, they do not have the necessary full cost recovery and profit-
       making focus
   •   The Digital Hub provides an economic development function. Whilst the facility earns revenue
       and operates on a partial user pays system, it is reliant on grants and does not have the
       necessary full cost recovery and profit-making focus
   •   Roads works do not undertake private works or engage in tendered works from State or
       Federal Government.
In these instances, the application of code of competitive conduct is anticipated to add additional
administrative expense without necessarily improving the decision-making or financial performance
of the activity.

Annualised expenditure for significant activities includes total operating expenses less depreciation
less competitive neutrality costs plus interest and loan redemption. Expenditure for code of
competitive conduct activities includes total operating expenses plus interest.




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