ATO National Tax Equivalent Regime

PART 2: THE NTER ENTITIES

State and territory government-owned enterprises

12. The NTER entities to which this Manual applies, are the state and territory government-owned business enterprises which are listed in the NTER entity register.

13. An NTER entity may be listed to participate in the NTER, or removed from the listing, at the sole discretion of its state or territory owner-government.

14. Subsidiaries or other enterprises wholly-owned by an NTER entity will not automatically participate in the NTER. To participate, the subsidiaries or other enterprises must also be listed in the NTER entity register by the relevant state or territory.

15. Entities which are actually subject to federal income tax are not eligible to participate in the NTER.

NTER entities required to follow this Manual

16. Each NTER entity is required to follow this Manual, and thereby to comply with the relevant taxation laws, pursuant to the TER legislation of the state or territory to which the NTER entity belongs. That requirement may be provided for directly in the legislation, or through an instrument (for example, a Treasurer's Instruction) prepared in accordance with the legislation, or by some other means.

17. NTER entities will not be entitled to use an accounting profits model to determine their (equivalent) taxable income or instalment income for the purposes of the NTER.

Version history

Prior versions of the ATO National Tax Equivalent Regime, from Version 6, can be requested from atolawsupport@ato.gov.au , if required.