37Earnings before interest and tax

37 Earnings before interest and tax

(1) The earnings before interest and tax (the EBIT) of a facility for a financial year are to be worked out in accordance with this section. (2) Subject to subsections (4) and (5), the EBIT of the facility for the financial year is to be calculated in accordance with: (a) the Australian accounting standards as in force at the end of the financial year; and (b) any EBIT Guidelines that are in force at that time. (3) For the purposes of subsection (2), EBIT Guidelines prevail over the Australian accounting standards to the extent of any inconsistency. Revenue to exclude PRF funding (4) For the purposes of calculating the EBIT of the facility for the financial year, any funding provided to the facility for the financial year under the Powering the Regions Fund must be excluded from the facility’s revenue for the financial year. Accelerated depreciation (5) The EBIT of the facility for the financial year must be calculated using a depreciation schedule that specifies one of the following depreciation factors for each capital expense of the facility: (a) 1.0; (b) 1.1; (c) 1.2. (6) The factors in paragraphs (5)(b) and (c) are accelerated depreciation factors. EBIT Guidelines (7) The Secretary may make written guidelines that relate to working out the earnings before interest and tax of a facility for a financial year. Guidelines made under this subsection are to be known as EBIT Guidelines. (8) The EBIT Guidelines are to be published on the Department’s website.