Annual Report 2014-15

Under the new arrangements Council does not hold a controlling interest in NBRF or NBRT, and
therefore, they are not considered beneficial enterprises as defined under the LG Act.

Council has entered into a funding deed with the NBRF until the end of 2017-18, which for the
2014-15 period, consisted of a $40,000 (excluding GST) contribution for start-up operational
expenses.

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
   Operations of 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.

Council confirms that it will undertake a public benefit assessment for Waste Management during
the 2015-16 period.

Competitive neutrality
By resolution at the ordinary meeting held on 6 March 2014, Council adopted to:
 Apply the Competitive Neutrality Principle to its Waste Management business activity for the
    remainder of the 2013/14 financial year in accordance with s44(1)(b) of the LG Act; and
 Apply the Code of Competitive Conduct to the Holiday Parks business activity for the
    remainder of the 2013/14 financial year in accordance with s47 of the LG Act.

Council’s above position remained unchanged for the 2014-15 period and confirms that it 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.




Noosa Council Annual Report 2014/15                                                          Page 22