Annual Report 2018-2019 Essential Services Commission of South Australia
Tabled paper 1481
Tabled Papers for 13th Assembly 2016 - 2020; Tabled Papers; ParliamentNT
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Department of the Legislative Assembly
Essential Services Commission Notes to and forming part of the financial statements for the year ended 30 June 2019 10 1.5. Comparative information The presentation and classification of items in the financial statements are consistent with prior periods, except where specific accounting standards and / or accounting policy statements have required a change. The Commission has not applied any accounting policy changes retrospectively for the financial year 2019. 1.6. Taxation The Commission is not subject to Income Tax. The Commission is liable for Payroll Tax, Fringe Benefits Tax (FBT) and Goods and Services Tax (GST). Income, expenses, assets and liabilities are recognised net of the amount of GST except when the GST incurred on a purchase of goods or services is not recoverable from the Australian Taxation Office, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item applicable. GST amounts payable and recoverable from the Australian Taxation Office are managed via Department of Treasury and Finance under the Commission's existing Service Level Agreement and are not reported in these statements for the year ended 30 June 2019. 1.7. Objectives The Commission is a statutory authority established as an independent economic regulator and advisory body under the ESC Act. The Commission undertakes economic regulation in the water and sewerage, electricity, gas, maritime and rail industries, conducts formal public inquiries and provides advice to the South Australian Government on economic and regulatory matters. The ESC Act and various industry Acts together provide the Commission with those regulatory and advisory powers and functions. Under the ESC Act the Commission has the primary objective of the protection of the long-term interests of South Australian consumers with respect to the price, quality and reliability of essential services. The ESC Act sets out seven further factors which the Commission must have regard to in performing its functions, being: promoting competitive and fair market conduct preventing misuse of monopoly or market power facilitating entry into relevant markets promoting economic efficiency ensuring consumers benefit from competition and efficiency facilitating maintenance of the financial viability of regulated industries and the incentive for long-term investment, and promoting consistency in regulation with other jurisdictions. The Commission has two broad advisory functions. The first is to provide advice to the Treasurer, on request, in relation to any matter (section 5(f) of the ESC Act). In that capacity the Commission acts as an adviser to the South Australian Government, providing independent advice on economic and regulatory matters. The second is to conduct formal public inquiries (Part 7 of the ESC Act). Such inquiries can be initiated by the Commission (into any matters within its regulatory scope), by the Treasurer (into any matter) or by an industry Minister (into any matter concerning a regulated industry).