59Local 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 (within the meaning of the Corporations Act 2001) of a local governing body; and (b) to a person for or in connection with an activity that is conducted for the local governing body under a written arrangement between the subsidiary and the local governing body. (2) The written arrangement mentioned in subsection (1)(b) must include a provision for the payment by the subsidiary to the local governing body of an amount approximately equivalent to the amount of tax that would be payable by the subsidiary under this Act but for the exemption.