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Transport Operations (Passenger Transport) Regulation 2018
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Transport Operations (Passenger Transport) Regulation 2018
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This section prescribes, for sections 61 (4) and 62AAH (4) of the Act , matters to be considered, or not considered, by an arbitrator in deciding an amount of compensation. An arbitrator must consider— for deciding an amount of compensation under section 61 (3) of the Act —the present value of the future maintainable profits or future cash flows of services of the kind provided for in the new service contract that were previously provided by an existing operator of a public passenger service or service contract holder who is a party to the arbitration; and for deciding an amount of compensation under 62AAH(3) of the Act —the present value of the future maintainable profits or future cash flows of services of the kind provided for in the new integrated mass transit service contract that were previously provided by an affected operator of a public passenger service who is a party to the arbitration; and the capitalisation of future maintainable profits or the discounting of future cash flows as the principal valuation methodology; and the definition future cash flows in subsection (4) when selecting the appropriate discount rate to apply to the future cash flows; and the definition future maintainable profits in subsection (4) when selecting the appropriate capitalisation rate to apply to the future maintainable profits; and relevant risk factors, including, for example, the life of the contract; and the value of the services derived using implied revenue multiples or other customary industry benchmarks. An arbitrator must not consider— capital gains tax; or additional costs incurred by the existing or affected operator of a public passenger service or service contract holder that are not related to the services acquired by the new operator; or income and expenses from activities, including, for example, public passenger services, that are outside the scope of the new service contract or the new integrated mass transit service contract; or economies of scale and operating efficiencies available to a new operator but not able to be achieved or accrued by the existing operator, affected operator or service contract holder. In this section— future cash flows means future maintainable profits adjusted for depreciation and capital expenditure. future maintainable profits means earnings before finance leases, interest and tax determined on the basis of past profits adjusted for the following— abnormal or exceptional revenue or expense items; owner’s remuneration; variations in accounting standards application; future changes to revenues and costs resulting from announced changes to government policy including, for example, changes in policy about— school payment rates; and subsidy arrangements; and average vehicle age. (sec.75-ssec.1) This section prescribes, for sections 61 (4) and 62AAH (4) of the Act , matters to be considered, or not considered, by an arbitrator in deciding an amount of compensation. (sec.75-ssec.2) An arbitrator must consider— for deciding an amount of compensation under section 61 (3) of the Act —the present value of the future maintainable profits or future cash flows of services of the kind provided for in the new service contract that were previously provided by an existing operator of a public passenger service or service contract holder who is a party to the arbitration; and for deciding an amount of compensation under 62AAH(3) of the Act —the present value of the future maintainable profits or future cash flows of services of the kind provided for in the new integrated mass transit service contract that were previously provided by an affected operator of a public passenger service who is a party to the arbitration; and the capitalisation of future maintainable profits or the discounting of future cash flows as the principal valuation methodology; and the definition future cash flows in subsection (4) when selecting the appropriate discount rate to apply to the future cash flows; and the definition future maintainable profits in subsection (4) when selecting the appropriate capitalisation rate to apply to the future maintainable profits; and relevant risk factors, including, for example, the life of the contract; and the value of the services derived using implied revenue multiples or other customary industry benchmarks. (sec.75-ssec.3) An arbitrator must not consider— capital gains tax; or additional costs incurred by the existing or affected operator of a public passenger service or service contract holder that are not related to the services acquired by the new operator; or income and expenses from activities, including, for example, public passenger services, that are outside the scope of the new service contract or the new integrated mass transit service contract; or economies of scale and operating efficiencies available to a new operator but not able to be achieved or accrued by the existing operator, affected operator or service contract holder. (sec.75-ssec.4) In this section— future cash flows means future maintainable profits adjusted for depreciation and capital expenditure. future maintainable profits means earnings before finance leases, interest and tax determined on the basis of past profits adjusted for the following— abnormal or exceptional revenue or expense items; owner’s remuneration; variations in accounting standards application; future changes to revenues and costs resulting from announced changes to government policy including, for example, changes in policy about— school payment rates; and subsidy arrangements; and average vehicle age.