IPART's final decision is to move to a post-tax cost of capital model. This final report sets out how we will move from pre-tax to a post-tax cost of capital approach using an effective rather than a statutory tax rate.
This paper shows how the incentive to delay cost savings in a standard CPI-X pricing regime can be overcome by a carryover mechanism or by sharing the gains from such savings at the end of each year within a determination period.
