We have been asked to investigate and advise on appropriate pricing arrangements for the NSW grain line network as it is defined in the NSW Grain Freight Review.
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.
In calculating a regulated business’s costs for the purpose of setting prices we generally include an allowance for a return on capital. This requires us to estimate a weighted average cost of capital (WACC).
