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Recovery of tax on capital contribution FAQs

Capital contributions, both cash contributions and assets that are gifted to Western Power, are treated as assessable income under the National Tax Equivalents Regime (NTER). We must pay tax on this income.

We reviewed our costs of taxation with the ERA (Economic Regulatory Authority) as part of our Third Access Arrangement (AA3) including whether it was appropriate to pass these costs onto all customers as part of network tariff.

The ERA concluded it is more appropriate for these costs to be passed onto the customer requesting the work. Further information on the ERA’s decision can be found at

We commenced recovery of the tax on capital contributions on 5 January 2015. The rate of recovery is 13.9%. When determining this amount, we took account of the tax we pay and the benefits we receive from depreciation and interest. The amount was independently reviewed and verified by external advisors.

The tax is recoverable for industrial or commercial projects including but not limited to:

  • commercial and industrial subdivisions
  • relocations
  • new revenue projects
  • network extensions
  • transmission line relocations

The value of your gifted asset is determined using our internal costing system.

For capital contributions the tax recovery component is paid at the time of letter of offer, contract or quote acceptance.

For gifted assets, payment of the tax recovery is required just prior to energisation.

For both capital contributions and gifted assets, we are unable to commence work until contributions including the tax recovery have been paid.


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Kalgoorlie storm response

Update 19 November 2017 - 6.30pm

We have restored electricity to about 3,000 customers in the Kalgoorlie-Boulder area since the wild storms that struck the Goldfields yesterday.

We have eight extra specialist crews in the region working into the night to restore power as safely and as quickly possible to our other 14,000 customers currently without electricity.

Further restorations are expected this evening, but people - especially those with an individual connection wire from their house to the network that has been brought down by debris - should be preparing for a night without power.

In some limited cases those individual customers may be without power for several days more until connections can be repaired and tested and declared safe by authorised specialists.

Four 500kVA Western Power Emergency Generators will be used to assist in restoration and other critical infrastructure when it is safe to do so. Two nursing homes have had power restored with the use of generators.

We are continuing to focus efforts on lines that can restore power and services to critical infrastructure and large numbers of customers in an attempt to return power as quickly and as safely to as many people as possible.

The priority areas for our crews at the moment are in Coolgardie, Kambalda, Boulder, Lionel West , Somerville and Picadilly South, the central business district and Hannan and Porter Streets in Kalgoorlie.

Over 173 hazards were registered with Western Power which has been reduced substantially but there are still a number of hazards left to attend, and our crews are discovering more hazards as they move through the network frustrating our progress.

If you see a fallen powerline or damaged pole call make the safe call to Western Power on 13 13 51 or if it is a life-threatening emergency, please call 000.

Power outage map for restoration times.