59Local government business entities

#### 59 Local government business entities 59 Local government business entities > > (1) Subject to section 60, wages are exempt wages if they are paid or payable— > > > > > (a) by a wholly-owned subsidiary of a council or of 2 or more councils, and > > > > > (b) to a person for or in connection with an activity that is conducted for the council or councils under a written arrangement between the subsidiary and the council or councils. > > > (2) The written arrangement referred to in subsection (1) (b) must include a provision for the payment by the subsidiary to the council or councils of an amount approximately equivalent to the amount of tax that would be payable by the subsidiary under this Act but for the exemption. > > > (3) In this section— > > > > council has the same meaning as in the [Local Government Act 1993](/view/html/inforce/current/act-1993-030). > > > > wholly-owned subsidiary has the same meaning as in the [Corporations Act 2001](http://www.legislation.gov.au/) of the Commonwealth. > > > (4) In this section, a reference to a wholly-owned subsidiary of 2 or more councils is a reference to a body corporate that, if the councils were a single council, would be a wholly-owned subsidiary of the single council. > > **s 59:** Am 2016 No 14, Sch 4 \[1\]–\[3\].