Development Allowance Authority Act 1992

This Act creates the Development Allowance Authority (DAA)—a single-person statutory office appointed by the Governor-General—to administer tax incentives for private sector investment in public infrastructure.

What it does:

• Establishes a certificate scheme where companies could obtain tax benefits (exempt or rebatable interest) for borrowing money to build infrastructure facilities like toll roads, airports, power stations, water supply systems, and gas pipelines.
• Defines three types of eligible borrowings:
  • Direct: Borrowing to construct or acquire infrastructure facilities
  • Indirect: Borrowing to lend to another party for a direct infrastructure borrowing
  • Refinancing: Borrowing to repay an existing infrastructure borrowing

Who could benefit: Private companies (not government-owned) that intended to own and operate the infrastructure for at least 25 years, or transfer it to another approved operator. The borrower had to be an incorporated body, corporate limited partnership, or public trading trust.

How it worked:

1. A company applied to the DAA for a certificate before borrowing
2. The DAA issued certificates if satisfied the borrowing met strict criteria (genuine infrastructure, public access, proper use of funds)