(1) An employer may apply for, and the Corporation may make, a downward adjustment under either subpart 2 or subpart 3 of this Part, but not under both subparts.

(2) To avoid doubt, the Corporation may not make, at the same time, more than 1 downward adjustment for the same employer.

(1) Audits for the purposes of this Part (other than audits for the purposes of regulation 13(2)) must be conducted by an auditor approved by the chief executive for the purpose.

(2) The chief executive must not approve a person to conduct audits of employers' safety management practices for the purposes of these regulations unless satisfied that the person has the qualifications and experience to undertake the audits.

The following decisions are decisions of the Corporation:

• (a) a decision about whether to make a downward adjustment:

• (b) a decision about which of the downward adjustments in regulation 11(2) applies:

• (c) a decision to discontinue or reduce a downward adjustment made after a further downward audit under regulation 18:

• (d) a decision about whether subpart 2 or subpart 3 of this Part applies to an employer:

• (e) a decision about whether to cancel or discontinue a downward adjustment under regulation 29, 30, or 31.

(1) The Corporation may make, under this subpart, a downward adjustment if a downward audit discloses that the employer's safety management practices meet the standard required by the downward audit tool used.

(2) The downward adjustment must be—

• (a) an adjustment of 10% if the downward audit discloses that the employer's safety management practices meet, to a primary level only, the standard required by the downward audit tool used; or

• (b) an adjustment of 15% if the downward audit discloses that the employer's safety management practices meet, to a secondary level but not a tertiary level, the standard required by the downward audit tool used; or

• (c) an adjustment of 20% if the downward audit discloses that the employer's safety management practices meet, to a tertiary level, the standard required by the downward audit tool used.

(1) A downward adjustment under this subpart is based on an audit of the employer's safety management practices conducted in accordance with a downward audit tool.

(2) An auditor conducting a downward audit may, but is not obliged to, allow the employer concerned up to 30 days to improve those practices or aspects of them before finalising the auditor's report.

(3) The 30-day period begins when the auditor notifies the employer of the practices or aspects that could be improved.

(1) An employer may apply to the Corporation for a downward audit under regulation 12(1) to see—

• (a) whether the employer qualifies for a downward adjustment under this subpart; and

• (b) if so, which of the downward adjustments in regulation 11(2) applies.

(2) Every application by an employer under subclause (1) must be accompanied by a written notice, given by the employer or (in the case of a body corporate) an officer or employee of the employer, containing—

• (a) a statement that the employer has conducted the employer's own audit of the employer's safety management practices, based on a downward audit tool; and

• (b) a declaration that, in the light of the results of the employer's own audit, the employer (or officer or employee) believes that a downward audit by an approved auditor would meet the standard required by a downward audit tool.

(1) The chief executive must decide which employers who have made applications under regulation 13(1) will be audited.

(2) In deciding, the chief executive may consider the declarations referred to in regulation 13(2)(b).

(3) The chief executive must deal with applications in the order in which they are received.

(4) Within 10 working days after receiving an application under regulation 13(1), the Corporation must—

• (a) decide whether or not to accept it; and

• (b) give written notice to the employer concerned of the Corporation's decision and the reasons for it.

(5) For the purposes of this regulation, an application is to be treated as not having been received until the date on which the Corporation has received all the information it reasonably requires to enable it to consider the application.

If a downward audit has previously been conducted on an application made by an employer under regulation 13(1), the employer concerned may not apply for another downward audit under that regulation for at least 12 months after being notified—

• (a) whether that previous downward audit discloses that those practices meet the standard required by the downward audit tool used; and

• (b) whether that audit, if it meets the standard required by the downward audit tool used, meets the standard required to a primary, secondary, or tertiary level.

(1) If the Corporation decides to make a downward adjustment under this subpart, the appropriate adjustment (or that adjustment as modified by any reductions under regulation 18(2)) must be applied to the employer levy payable by the employer during the period—

• (a) commencing on the first day of the month after the month in which the employer was notified of the decision; and

• (b) ending on the earlier of—

  • (i) the day 24 months later:

  • (ii) the discontinuation of the adjustment under regulation 18(2).

(2) If a downward adjustment under this subpart will cease to apply to an employer's employer levy on the expiration of a 24-month period, the Corporation must notify the employer of when the period will end.

(3) The Corporation must comply with subclause (2)—

• (a) not earlier than 3 months before the end of the period; and

• (b) not later than 2 months before the end of the period.

If the Corporation decides to make a downward adjustment under this subpart after the employer has paid the employer levy for a period, the Corporation—

• (a) must pay the amount of the downward adjustment to the employer—

  • (i) if the employer so requests; and

  • (ii) if, after the downward adjustment, the employer's account is more than $100 in credit; or

• (b) otherwise, must credit the amount of the adjustment to the employer's account to be offset against payment of the employer levy for the next period.

(1) The Corporation may require an employer to undergo a further downward audit, at a time specified by the Corporation, if, since a downward adjustment under this subpart to the employer's employer levy took effect,—

• (a) there has been a fatal or serious injury at the employer's workplace; or

• (b) there has been a cluster of injuries at the employer's workplace; or

• (c) the Corporation has received complaints from an employee or employees of the employer about safety standards at the employer's workplace; or

• (d) the ownership or control of the employer's business has changed.

(2) After the further downward audit, the Corporation may discontinue or reduce the adjustment.

(3) Promptly after deciding to discontinue or reduce the adjustment, the Corporation must give written notice of its decision to the employer.

(4) A discontinuation or reduction of the adjustment takes effect on the first day of the month after the month in which the Corporation notifies the employer of its decision to discontinue or reduce the adjustment.

(5) The Corporation may adjust the amount of monthly instalments of the employer levy payable by the employer on and after the day on which the discontinuation or reduction of the adjustment takes effect.

In this subpart, unless the context otherwise requires,—

This subpart applies to an employer if—

• (a) either 1 of the following applies:

  • (i) the total liable earnings of the employer's employees are equal to or less than $380,000 in any tax year; or

  • (ii) the employer employs 10 or fewer full-time equivalent employees; and

• (b) the employer is classified in 1 of the classification units specified in Schedule 2; and

• (c) the Corporation is satisfied that the employer or the employer's responsible employee has a relevant industry health and safety management background; and

• (d) the employer allows a downward audit (which may include an on-site audit) to be conducted of the employer's safety management practices.

(1) The Corporation may make, under this subpart, a downward adjustment if it is satisfied that—

• (a) this subpart applies to the employer; and

• (b) the employer's safety management practices meet the standard required by the downward audit tool used.

(2) The downward adjustment must be an adjustment of 10%.

(1) A downward adjustment under this subpart is based on an audit of the employer's safety management practices conducted in accordance with a downward audit tool.

(2) An auditor conducting a downward audit may, but is not obliged to, allow the employer up to 30 days to improve the employer's safety management practices, or aspects of them, before finalising the auditor's report.

(3) The 30-day period begins when the auditor notifies the employer of the safety management practices that could be improved.

(1) An employer may apply to the Corporation for a downward adjustment under this subpart.

(2) Every application by an employer under subclause (1) must include—

• (a) a declaration by the employer or the employer's responsible employee that this subpart applies to the employer; and

• (b) satisfactory evidence that the employer or the employer's responsible employee has a relevant industry health and safety management background; and

• (c) an assessment by the employer or the employer's responsible employee of the employer's safety management practices, based on the relevant downward audit tool; and

• (d) a declaration that the employer or the employer's responsible employee believes that the employer's safety management practices meet the standard required by the relevant downward audit tool.

(1) The Corporation must deal with applications for downward adjustments under this subpart in the order in which they are received.

(2) After receiving an application, the Corporation must—

• (a) decide whether this subpart applies to the employer; and

• (b) decide whether to make the downward adjustment.

(3) The Corporation—

• (a) may consider the declarations referred to in regulation 23(2) in making any decision under subclause (2); and

• (b) must give the employer written notice of that decision and the reasons for it.

(1) An approved auditor may conduct a downward audit under this subpart by either or both of the following means:

• (a) assessing the documentation included in the employer's application for a downward adjustment (whether on the papers or by means of an interview of the employer or the employer's responsible employee):

• (b) conducting an on-site audit of the employer's safety management practices.

(2) To avoid doubt, subclause (1) does not require an approved auditor to conduct an on-site audit before determining whether the employer's safety management practices meet the standard required by a downward audit tool.

(1) If the Corporation decides to make a downward adjustment under this subpart, the appropriate adjustment must be applied to the employer levy payable by the employer during the prescribed downward adjustment period.

(2) Subclause (1) is subject to regulations 28, 29, and 30(2).

(3) Prescribed downward adjustment period means the period comprising—

• (a) the tax year in which the employer's application for the downward adjustment under this subpart was received (that is, the period commencing on 1 April and ending on 31 March in that tax year); and

• (b) the next 2 tax years.

(1) The Corporation must send to every employer for whom the Corporation has made a downward adjustment under this subpart a written notice that the employer is required to submit a declaration under subclause (3).

(2) The written notice must be sent to the employer before each anniversary of the date of the employer's application for the downward adjustment.

(3) The employer must, within 6 months of the date of the written notice, submit to the Corporation a declaration that, at the time the declaration is made,—

• (a) this subpart continues to apply to the employer on the basis that the employer continues to meet the requirements in regulation 20(a) to (c); and

• (b) the assessment that was included, in accordance with regulation 23(2)(c), in the employer's application for the downward adjustment continues to reflect the employer's safety management practices.

(4) To avoid doubt, the requirement in subclause (3) applies only during the prescribed downward adjustment period.

(1) If an employer for whom the Corporation has made a downward adjustment under this subpart fails to submit a declaration required by regulation 27(3) within the time required by that subsection, the Corporation—

• (a) may cancel the downward adjustment for the tax year in which the declaration was due; and

• (b) must discontinue the downward adjustment for the remainder of the prescribed downward adjustment period after the tax year in which the declaration was due.

(2) If the downward adjustment is cancelled for a tax year under subclause (1)(a), the downward adjustment ceases to apply for the entire tax year (that is, the period commencing on 1 April and ending on 31 March in that tax year).

(3) If the Corporation cancels the downward adjustment under subclause (1)(a) after the employer has paid the downward adjusted employer levy for that tax year, the Corporation may recover the amount of the adjustment made in that tax year.

(4) If the Corporation cancels the downward adjustment under subclause (1)(a), or discontinues the downward adjustment under subclause (1)(b), before the employer has paid the downward adjusted employer levy for that tax year, the Corporation may adjust the amount of any instalments of the employer levy payable by the employer for that tax year.

(5) Promptly after deciding to cancel or discontinue the downward adjustment, the Corporation must give written notice of its decision to the employer.

(1) This regulation applies if a declaration submitted by an employer under regulation 27(3) discloses that—

• (a) this subpart no longer applies to the employer on the basis that the employer no longer meets the requirements in regulation 20(a) to (c); or

• (b) the assessment that was included, in accordance with regulation 23(2)(c), in the employer's application for the downward adjustment no longer reflects the employer's safety management practices.

(2) The Corporation—

• (a) may cancel the downward adjustment for the tax year in which the declaration was made; and

• (b) must discontinue the downward adjustment for the remainder of the prescribed downward adjustment period after the tax year in which the declaration was made.

(3) If the downward adjustment is cancelled for a tax year under subclause (2)(a), the downward adjustment ceases to apply for the entire tax year (that is, the period commencing on 1 April and ending on 31 March in that tax year).

(4) If the Corporation cancels the downward adjustment under subclause (2)(a) after the employer has paid the downward adjusted employer levy for that tax year, the Corporation may recover the amount of the adjustment made in that tax year.

(5) If the Corporation cancels the downward adjustment under subclause (2)(a), or discontinues the downward adjustment under subclause (2)(b), before the employer has paid the downward adjusted employer levy for that tax year, the Corporation may adjust the amount of any instalments of the employer levy payable by the employer for that tax year.

(6) Promptly after deciding to cancel or discontinue the downward adjustment, the Corporation must give written notice of its decision to the employer.

(7) If subclause (1)(a) applies, the employer may not make a new application for a downward adjustment until this subpart applies to the employer.

(8) If subclause (1)(b) applies, the employer may make a new application for a downward adjustment (in which case the provisions of this subpart must be complied with again).

(9) Subclause (8) is subject to regulation 31(2).

(1) The Corporation may require an employer to undergo a further downward audit, at a time specified by the Corporation, if, since a downward adjustment under this subpart to the employer's employer levy took effect,—

• (a) there has been a fatal or serious injury at the employer's workplace; or

• (b) there has been a cluster of injuries at the employer's workplace; or

• (c) the Corporation has received complaints about safety standards at the employer's workplace; or

• (d) the Corporation believes, on reasonable grounds, that—

  • (i) this subpart does not apply to the employer; or

  • (ii) the assessment that was included, in accordance with regulation 23(2)(c), in the employer's application for the downward adjustment does not reflect the employer's safety management practices; or

• (e) the ownership or control of the employer's business has changed.

(2) If the employer's safety management practices fail to meet the standard required in the further downward audit, the Corporation may—

• (a) cancel the downward adjustment for the tax year in which the further downward audit was conducted; and

• (b) discontinue the downward adjustment for the remainder of the prescribed downward adjustment period after the tax year in which the further downward audit was conducted.

(3) If the downward adjustment is cancelled for a tax year under subclause (2)(a), the downward adjustment ceases to apply for the entire tax year (that is, the period commencing on 1 April and ending on 31 March in that tax year).

(4) If the Corporation cancels the downward adjustment under subclause (2)(a) after the employer has paid the downward adjusted employer levy for that tax year, the Corporation may recover the amount of the adjustment made in that tax year.

(5) If the Corporation cancels the downward adjustment under subclause (2)(a), or discontinues the downward adjustment under subclause (2)(b), before the employer has paid the downward adjusted employer levy for that tax year, the Corporation may adjust the amount of any instalments of the employer levy payable by the employer for that tax year.

(6) Promptly after deciding to cancel or discontinue the downward adjustment, the Corporation must give written notice of its decision to the employer.

(1) This regulation applies if—

• (a) an employer applies for a downward adjustment under this subpart and the Corporation decides not to make a downward adjustment because—

  • (i) the employer is not a person to whom this subpart applies; or

  • (ii) the employer's safety management practices do not meet the standard required by a downward audit tool; or

• (b) the Corporation makes a downward adjustment, but then decides to cancel or discontinue the downward adjustment under regulation 28, 29, or 30.

(2) If the employer makes a further application for a downward adjustment within 6 months of being notified of the Corporation's decision referred to in subclause (1)(a) or (b), the Corporation may refuse to consider a further application.

If the Corporation decides to make a downward adjustment under this subpart after the employer has paid the employer levy for a tax year during the prescribed downward adjustment period, the Corporation—

• (a) must pay the amount of the downward adjustment to the employer—

  • (i) if the employer so requests; and

  • (ii) if, after the downward adjustment, the employer's account is more than $100 in credit; or

• (b) otherwise, must credit the amount of the adjustment to the employer's account to be offset against payment of the employer levy for the next period.