Key requirements for state and local government to correctly apply the Competitive Neutrality Policy
How to apply the Competitive Neutrality Policy
State Government agencies and local governments (government entities) follow a four step process to apply the Competitive Neutrality Policy.
Step 1—Government entities are responsible for determining which of their activities fall within scope of the Policy. The OCBR guidance note Identifying significant business activities for competitive neutrality (PDF (PDF 1015kb) or Word (DOCX 67kb)) sets out criteria to consider when assessing whether an activity is a significant business for CN purposes.
Step 2—For a significant business activity, government entities should assess the benefits and costs of introducing competitive neutrality policy measures.
Step 3—In some cases a significant business activity operates in part to achieve social, environmental and other policy objectives. Where the implementation of fully cost-reflective pricing or other CN measure may compromise other public policy objectives, the government entity should conduct a public interest test to demonstrate the case for not implementing the measure.
Step 4—Government entities are required to implement competitive neutrality measure/s to significant business activities where it is in the public interest to do so.