sec.19Full cost pricing

sec.19 Full cost pricing

The council applies full cost pricing to a significant business activity by charging for goods or services at the full cost of providing the goods or services, subject to the following— the pricing provisions; the removal of any competitive advantage or disadvantage, whenever possible and appropriate; 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. For subsection (1) — the council applies full cost pricing to a significant business activity if the total projected revenue from providing all of the activity’s goods and services is enough to cover the projected total costs of conducting the activity; and it is not relevant whether the projected revenue from providing a particular good or service is enough to cover the projected costs incurred in providing that particular good or service. A competitive advantage is an advantage a business entity conducting a significant business activity has over a private sector business because the council owns the activity. For example, a competitive advantage includes— a financial advantage; and a procedural advantage; and a regulatory advantage. A business entity conducting a significant business activity has a financial advantage if the business entity— is exempt from paying a local government tax 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. A business entity conducting a significant business activity 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. A business entity conducting a significant business activity has a regulatory advantage if the business entity is exempt (completely or partly) from a government approval process a private sector business must follow. A competitive disadvantage is a disadvantage a business entity conducting a significant business activity suffers over a private sector business because the council owns the activity. For example, a competitive disadvantage includes a community service obligation. (sec.19-ssec.1) The council applies full cost pricing to a significant business activity by charging for goods or services at the full cost of providing the goods or services, subject to the following— the pricing provisions; the removal of any competitive advantage or disadvantage, whenever possible and appropriate; 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. (sec.19-ssec.2) For subsection (1) — the council applies full cost pricing to a significant business activity if the total projected revenue from providing all of the activity’s goods and services is enough to cover the projected total costs of conducting the activity; and it is not relevant whether the projected revenue from providing a particular good or service is enough to cover the projected costs incurred in providing that particular good or service. (sec.19-ssec.3) A competitive advantage is an advantage a business entity conducting a significant business activity has over a private sector business because the council owns the activity. (sec.19-ssec.4) For example, a competitive advantage includes— a financial advantage; and a procedural advantage; and a regulatory advantage. A business entity conducting a significant business activity has a financial advantage if the business entity— is exempt from paying a local government tax 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. A business entity conducting a significant business activity 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. A business entity conducting a significant business activity has a regulatory advantage if the business entity is exempt (completely or partly) from a government approval process a private sector business must follow. (sec.19-ssec.5) A competitive disadvantage is a disadvantage a business entity conducting a significant business activity suffers over a private sector business because the council owns the activity. (sec.19-ssec.6) For example, a competitive disadvantage includes a community service obligation.