The AER has released its proposed amendments to the transmission and distribution post-tax revenue models (PTRMs) under the National Electricity Rules. The proposed amendments give effect to the changes set out in AER’s final report on the review of the regulatory tax approach. The amendments allow for the recognition of immediate expensing of certain capex for tax purposes and applies the diminishing value method for tax depreciation to new depreciable assets.
The PTRMs also now provide the option to select and input 'tracked' depreciation of the opening asset bases and other minor presentational changes.
The explanatory statement explains the proposed amendments, and the reasons for our proposed approach. These proposed amendments are implemented in the amended PTRMs and revised PTRM handbooks.