Note 9. Competitive Neutrality
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2019
|
2019 |
2018 |
|
|---|---|---|
|
$'000 |
$'000 |
|
|
State tax equivalent expense |
5,433 |
5,336 |
|
Commonwealth tax equivalent expense |
8,320 |
7,504 |
|
Annual neutrality offset payment to the national workers compensation regulatory scheme |
100 |
100 |
|
Total |
13,853 |
12,940 |
Accounting policy for competitive neutrality
Hearing Australia provides services on a for-profit basis. Under competitive neutrality arrangements Hearing Australia is required to make payroll tax and income tax equivalent payments to the Commonwealth Government in addition to statutory payments for FBT and GST. Hearing Australia pays an annual regulatory neutrality payment to the Official Public Account to offset the cost advantages relative to its competitors as a result of operating under one national workers compensation regulatory scheme.
Visit
https://www.transparency.gov.au/annual-reports/hearing-australia/reporting-year/2018-2019-58