(1) An employer or self-employed person may apply for, and the Corporation may make, a downward adjustment under either subpart 2 or 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 or self-employed person in his or her capacity as an employer or self-employed person.

(1) Audits for the purposes of this Part (other than audits for the purposes of regulation 20(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’ or self-employed persons’ 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 18(2) applies:

• (c) a decision to discontinue or reduce a downward adjustment made after a further downward audit under regulation 25:

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

• (e) a decision about whether to cancel or discontinue a downward adjustment under regulation 35, 36, or 37.

(1) The Corporation may make, under this subpart, a downward adjustment if a downward audit discloses that the employer’s or self-employed person’s safety management practices meet the standard required by the downward audit tool approved by the Minister for the purposes of this subpart.

(2) The downward adjustment must be—

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

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

• (c) an adjustment of 20% if the downward audit discloses that the employer’s or self-employed person’s safety management practices meet, to a tertiary level, the standard required by the downward audit tool.

(1) A downward adjustment under this subpart is based on an audit of the employer’s or self-employed person’s safety management practices conducted in accordance with the downward audit tool.

(2) An auditor conducting a downward audit may, but is not obliged to, allow the employer or self-employed person up to 30 days to improve their 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 or self-employed person of the safety management practices, or aspects of them, that could be improved.

(1) An employer or self-employed person may apply to the Corporation for a downward audit under regulation 19(1) to see—

• (a) whether the employer or self-employed person qualifies for a downward adjustment under this subpart; and

• (b) if so, which of the downward adjustments in regulation 18(2) applies.

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

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

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

(1) The chief executive must decide which of the applicants who have made applications under regulation 20(1) will be audited.

(2) In deciding, the chief executive may consider the declarations referred to in regulation 20(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 20(1), the Corporation must—

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

• (b) give written notice to the applicant 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 applicant under regulation 20(1), the applicant 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 the employer’s or self-employed person’s safety management practices meet the standard required by the downward audit tool; and

• (b) if so, whether they meet 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 25(3)) must be applied to the Work Account levy or the compensation levy payable by the employer or self-employed person during the period—

• (a) commencing on the first day of the month after the month in which the employer or self-employed person 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 25(3).

(2) If a downward adjustment under this subpart will cease to apply to an employer’s or self-employed person’s Work Account levy or compensation levy on the expiration of a 24-month period, the Corporation must notify the employer or self-employed person of the date 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 or self-employed person has paid the Work Account levy or compensation levy for a period, the Corporation—

• (a) must pay the amount of the downward adjustment to the employer or self-employed person—

  • (i) if the employer or self-employed person so requests; and

  • (ii) if, after the adjustment, the employer or self-employed person’s account is more than $100 in credit; or

• (b) must credit the amount of the adjustment to the employer's or self-employed person’s account to be offset against payment of the Work Account levy or compensation 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 made under this subpart to the employer’s Work Account 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) The Corporation may require a self-employed person to undergo a further downward audit, at a time specified by the Corporation, if, since a downward adjustment under this subpart to the self-employed person’s Work Account levy or compensation levy took effect,—

• (a) there has been a fatal or serious injury at the self-employed person’s workplace; or

• (b) there has been a cluster of injuries at the self-employed person’s workplace; or

• (c) the Corporation has received complaints about safety standards at the self-employed person’s workplace; or

• (d) the ownership or control of the self-employed person’s business has changed.

(3) After the further downward audit, the Corporation may discontinue or reduce the employer's or self-employed person's adjustment.

(4) Promptly after deciding to discontinue or reduce the adjustment, the Corporation must give written notice of its decision to the employer or self-employed person.

(5) 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 or self-employed person of its decision to discontinue or reduce the adjustment.

(6) The Corporation may adjust the amount of monthly instalments of the Work Account levy or compensation levy payable by the employer or self-employed person 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—

• (a) to a person who—

  • (i) is an employer, if either 1 of the following applies:

    • (A) the total liable earnings of the employer’s employees are equal to or less than $450,000 in the current tax year; or

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

  • (ii) is a self-employed person, if either 1 of the following applies:

    • (A) the person derived earnings, as a self-employed person, that are equal to or less than $450,000 in the previous tax year; or

    • (B) the person employs 10 or fewer full-time-equivalent employees; and

• (b) if the employer or self-employed person is classified in 1 of the classification units specified in Schedule 4; and

• (c) if the Corporation is satisfied that the employer (or the employer’s responsible employee) or the self-employed person has a relevant industry health and safety management background; and

• (d) if the employer or self-employed person allows a downward audit (which may include an on-site audit) to be conducted of the employer’s or self-employed person’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 or self-employed person; and

• (b) the employer’s or self-employed person’s safety management practices meet the standard required by the downward audit tool that applies to the classification unit in which the employer or self-employed person is classified.

(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 or self-employed person’s safety management practices conducted in accordance with the relevant downward audit tool.

(2) An auditor conducting a downward audit may, but is not obliged to, allow the employer or self-employed person up to 30 days to improve their 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 or self-employed person of the safety management practices, or aspects of them, that could be improved.

(1) An employer or self-employed person may apply to the Corporation for a downward adjustment under this subpart.

(2) Every application under subclause (1) must include—

• (a) a declaration by the applicant (or, in the case of an employer, the employer’s responsible employee) that this subpart applies to the applicant; and

• (b) satisfactory evidence that the applicant (or, in the case of an employer, the employer’s responsible employee) has a relevant industry health and safety management background; and

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

• (d) a declaration that the applicant (or, in the case of an employer, the employer’s responsible employee) believes that the applicant’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 applicant; and

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

(3) The Corporation—

• (a) may consider the declarations referred to in regulation 30(2) in making any decision under subclause (2); and

• (b) must give the applicant 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 applicant’s application for a downward adjustment (whether the assessment is based on the documents or is conducted by means of an interview with the applicant or, in the case of an employer, the employer’s responsible employee):

• (b) conducting an on-site audit of the applicant’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 applicant’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 Work Account levy or compensation levy payable by the employer or self-employed person during the prescribed downward adjustment period.

(2) Subclause (1) is subject to regulations 35, 36, and 37.

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

• (a) the tax year in which the applicant’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 or self-employed person for whom the Corporation has made a downward adjustment under this subpart a written notice that the employer or self-employed person is required to submit a declaration under subclause (3).

(2) The written notice must be sent to the employer or self-employed person each year of the prescribed downward adjustment period, before each anniversary of the date of the person’s application for the downward adjustment.

(3) The employer or self-employed person 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 or self-employed person on the basis that the employer or self-employed person continues to meet the requirements in regulation 27(a) to (c); and

• (b) the assessment that was included, in accordance with regulation 30(2)(c), in the employer’s or self-employed person’s application for the downward adjustment continues to reflect the person’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 or self-employed person for whom the Corporation has made a downward adjustment under this subpart fails to submit a declaration required by regulation 34(3) within the time required by that subclause, 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 or self-employed person has paid the downward adjusted Work Account levy or compensation 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 or self-employed person has paid the downward adjusted Work Account levy or compensation levy for that tax year, the Corporation may adjust the amount of any instalments of the Work Account levy or compensation levy payable by the employer or self-employed person 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 or self-employed person.

(1) This regulation applies if a declaration submitted by an employer or self-employed person under regulation 34(3) discloses that—

• (a) this subpart no longer applies to the employer or self-employed person on the basis that the employer or self-employed person no longer meets the requirements in regulation 27(a) to (c); or

• (b) the assessment that was included, in accordance with regulation 30(2)(c), in the employer’s or self-employed person’s application for the downward adjustment no longer reflects the employer’s or self-employed person’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 or self-employed person has paid the downward adjusted Work Account levy or compensation 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 or self-employed person has paid the downward adjusted Work Account levy or compensation levy for that tax year, the Corporation may adjust the amount of any instalments of the Work Account levy or compensation levy payable by the employer or self-employed person 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 or self-employed person.

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

(8) If subclause (1)(b) applies, the employer or self-employed person 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 38(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 Work Account 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 30(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) The Corporation may require a self-employed person to undergo a further downward audit, at a time specified by the Corporation, if, since a downward adjustment under this subpart to the self-employed person’s Work Account levy or compensation levy took effect,—

• (a) there has been a fatal or serious injury at the self-employed person’s workplace; or

• (b) there has been a cluster of injuries at the self-employed person’s workplace; or

• (c) the Corporation has received complaints about safety standards at the self-employed person’s workplace; or

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

  • (i) this subpart does not apply to the self-employed person; or

  • (ii) the assessment that was included, in accordance with regulation 30(2)(c), in the self-employed person’s application for the downward adjustment does not reflect the self-employed person’s safety management practices; or

• (e) the ownership or control of the self-employed person’s business has changed.

(3) If the employer’s or self-employed person’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.

(4) If the downward adjustment is cancelled for a tax year under subclause (3)(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).

(5) If the Corporation cancels the downward adjustment under subclause (3)(a) after the employer or self-employed person has paid the downward adjusted Work Account levy or compensation levy for that tax year, the Corporation may recover the amount of the adjustment made in that tax year.

(6) If the Corporation cancels the downward adjustment under subclause (3)(a), or discontinues the downward adjustment under subclause (3)(b), before the employer or self-employed person has paid the downward adjusted Work Account levy or compensation levy for that tax year, the Corporation may adjust the amount of any instalments of the Work Account levy or compensation levy payable by the employer or self-employed person for that tax year.

(7) Promptly after deciding to cancel or discontinue the downward adjustment, the Corporation must give written notice of its decision to the employer or self-employed person.

(1) This regulation applies if—

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

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

  • (ii) the employer’s or self-employed person’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 35, 36, or 37.

(2) If the employer or self-employed person 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 or self-employed person has paid the Work Account levy or compensation 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 or self-employed person—

  • (i) if the employer or self-employed person so requests; and

  • (ii) if, after the downward adjustment, the employer’s or self-employed person’s account is more than $100 in credit; or

• (b) otherwise, must credit the amount of the adjustment to the employer’s or self-employed person’s account to be offset against payment of the Work Account levy or compensation levy for the next period.