8Major project

8 Major project

(1) If the total expenditure of a capital nature that has been incurred, or is reasonably likely to be incurred, in carrying out a designated project is greater than or equal to the major project threshold amount, the project is a major project for the purposes of this Act. (2) For the purposes of this Act, major project threshold amount means $500 million. (3) For the purposes of this section, if a project is subject to one or more conditions, assume that those conditions will be satisfied. Arm’s length transactions (4) If: (a) a person has incurred, or is reasonably likely to incur, expenditure in connection with a transaction; and (b) the parties to the transaction did not, or are not likely to, deal with each other at arm’s length in relation to the transaction; and (c) the amount of the expenditure is, or is reasonably likely to be, less than is reasonable; the amount of the expenditure is taken, for the purposes of this section, to be the amount that would have been reasonable if the parties were dealing with each other at arm’s length. Anti‑avoidance (5) If: (a) at any time after the commencement of this section, one or more persons entered into, commenced to carry out, or carried out, a scheme; and (b) the scheme involves carrying out 2 or more low‑value designated projects; and (c) the total expenditure of a capital nature that has been incurred, or is reasonably likely to be incurred, in carrying out those projects is greater than or equal to the major project threshold amount; and (d) having regard to the following: (i) the manner in which the scheme was entered into or carried out; (ii) the form and substance of the scheme; (iii) the time when the scheme was entered into and the length of the period during which the scheme was, or is likely to be, carried out; (iv) the result in relation to the operation of this Act that, but for this section, would be achieved by the scheme; it would be concluded that the person, or any of the persons, who entered into, commenced to carry out, or carried out, the scheme did so for the sole or dominant purpose of enabling a person to avoid the application of Part 2; the Authority may, by writing, determine that each of those projects is a major project for the purposes of this Act. (6) For the purposes of subsection (5), it is immaterial whether the person last mentioned in paragraph (5)(d) is the person, or one of the persons, mentioned in paragraph (5)(a). (7) If the Authority makes a determination under subsection (5), the Authority must publish a copy of the determination on the Authority’s website. (8) A determination under subsection (5) is not a legislative instrument. (9) For the purposes of subsection (5), if the total expenditure of a capital nature that has been incurred, or is reasonably likely to be incurred, in carrying out a designated project is less than the major project threshold amount, the project is a low‑value designated project. (10) For the purposes of subsection (5), scheme means: (a) any agreement, arrangement, understanding, promise or undertaking, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings; or (b) any scheme, plan, proposal, action, course of action or course of conduct, whether there are 2 or more parties or only one party involved.