Today I am announcing that the Government will provide an income tax exemption for local government businesses which become companies.
The exemption will encourage local government businesses to become companies and thereby improve their efficiency and product and service delivery.
At present, local government businesses are not separate from local governments themselves and therefore come within the general local government income tax exemption.
The new exemption is consistent with National Competition Policy and will apply from 1 July 2000. The necessary legislation will be introduced into the Parliament as soon as is practicable.