The Australian Energy Regulator (AER) today published its determination on AusNet Services’ cost pass through application to recover costs related to easement land tax payable for the 2025-26 regulatory year, as assessed by the State Revenue Office of Victoria.
The AER’s decision is to approve a cost pass through amount of $61.3 million (nominal). This will allow AusNet Services to recover its actual easement land tax costs in the 2025-26 regulatory year.
The National Electricity Rules recognise the risk that AusNet Services’ land tax assessments may vary from forecast costs during a regulatory control period. The rules allow for AusNet Services to recover its actual total land tax payable each year. We are satisfied the proposed pass through amount is appropriate and meets the rule requirements.
The pass through amount is similar to the amount recovered by AusNet Services in 2024-25. As a result, there is no material change to consumer bills for the 2025-26 regulatory year resulting from this determination.
Background
The Land Tax Act 2005 (Vic) applies to electricity transmission easements owned by AusNet Services in Victoria. AusNet Services’ current revenue determination provides a forecast of required easement land tax payments in the 2022–27 regulatory period. Each year, the State Revenue Office of Victoria issues a Land Tax Assessment Notice to AusNet Services setting out the actual amount payable for that year.
The National Electricity Rules provide that any difference between the forecast and actual amounts of land tax payable in a year is a cost pass through event. The AER is required to assess applications to pass through the difference in costs, either positive or negative, and determine the amount of prudent and efficient costs that AusNet Services can pass through to network users.