The Effectiveness of the National Tax Equivalent Regime (NTER) in Encouraging Competitive Neutrality

Abstract

This thesis examined whether the National Tax Equivalent Regime (NTER) achieved its goal of encouraging competitive neutrality through the notional application of Federal income tax laws to state owned entities. The study focused on the electricity and water industries, and also considered the effect of privatisation in the electricity sector. The thesis found that NTER entities had both advantages and disadvantages over their privately-owned counterparts and made recommendations to improve the design of the NTER.