Regulatory changes will be progressed to extend the pensioner rates-remission scheme, provided under the Local Government (Rates and Charges Remissions) Act 1991, to Australian Government health care card holders. The State Government announced the extension of this scheme in the 2008–09 State Budget and that it will apply from 1 July 2008.

We will be developing a Community Service Obligation framework for Tasmania's water and sewerage sector and introducing legislation for its application.

We will also develop the Government's input to the Commonwealth Government's comprehensive review of Australia's tax system (the Henry Review).

Taxation policy input will be provided to the Tasmanian Chamber of Commerce and Industry's Taxation and Expenditure Review.

We will provide taxation policy advice and other support to the State Business Tax and Regulation Reference Group's review of business regulation and taxation.

We will undertake a review of fire service funding and provide recommendations to the Treasurer on change that will improve the efficiency, equity and transparency of the funding model.

Further advice will be provided to the Treasurer on new funding models for moving the ambulance service to a sustainable basis.

We will prepare a Bill with further miscellaneous amendments to several taxation and tax related Acts.

Initiatives that arise from the Government's response to the social and economic impact study into gambling will be progressed.

Amendments to public sector superannuation legislation will be prepared to improve clarity and administrative efficiency, and to enable the Retirement Benefits Fund to comply with the Australian Government's anti-terrorism and money-laundering legislation.

Market structures facilitation

(Budget Output 2.3)

Water and sewerage

The Treasurer's speech on Tasmanian Water and Sewerage reform to the Committee of Economic Development of Australia Forum in Hobart on 6 July 2007 served as a catalyst for moving the discussion with Local Government from "was reform necessary?" to "how do we achieve reform together?" This enabled the Water and Sewerage Project Team to work on designing solutions to the challenges for the industry.

During the year the Project Team, working with consultants, developed high-level policy advice in relation to strengthening the industry's economic regulatory framework, verifying financial data relating to performance of the sector and designing structural solutions for the sector. Several community consultation sessions on the design of the regulatory framework were held around the State in October and December 2007. These proved popular, being attended by more than 160 individuals.

On 4 February 2008, an historic agreement between State and Local Government regarding the design of the structural solution was reached at the Premier's Local Government Council meeting. The agreed solution provided for three local government-owned regional water and sewerage businesses, one in the North, one in the South and one in the North-West of the State. A fourth business, that will be owned by the regional businesses and will provide common services to the regional businesses, was also agreed.

In late February 2008, we provided advice to Cabinet recommending regulatory and structural reform to the water and sewerage industry in Tasmania consistent with the position endorsed by the Premier's Local Government Council.