75Subsequent audits—number

#### 75 Subsequent audits—number (1) An eligible offsets project (other than an alternative assurance project) must have not less than 2 subsequent audits. Audit thresholds (3) If the annual average abatement amount for the project exceeds an audit threshold, the project must have the number of subsequent audits required for the threshold. (4) The Regulator may, by legislative instrument (the audit thresholds instrument), set out one or more of the following: (a) audit thresholds for eligible offsets projects; (b) the number of subsequent audits required for projects that meet each audit threshold; (ba) matters relating to alternative assurance projects for subsection 73(7); (bb) if an alternative assurance project is required to undertake one or more scheduled audits, whether the first of those audits is an initial audit; (c) trigger audit thresholds for eligible offsets projects; (d) variance audit thresholds for eligible offsets projects. (4A) In making an instrument under subsection (4), the Regulator must take into account: (a) the proportionality of likely audit burden to risks associated with relevant classes of eligible offsets projects; and (b) whether particular classes of eligible offsets projects should have more or less scheduled audits or no scheduled audits; and (c) the likely effectiveness of any alternative assurance process that may be prescribed or specified for the purposes of paragraphs 73(7)(b) or (c); and (d) the principle that any costs for a project proponent of being an alternative assurance project should be less than the costs of audits that would otherwise be conducted; and (e) any other matter the Regulator considers relevant. Large projects (5) If the project is a large project, the number of subsequent audits for the project: (a) may be decided by agreement between the Regulator and the project proponent; or (b) if no such agreement is reached—is the number determined in accordance with the audit thresholds instrument. Reducing number of subsequent audits (6) The Regulator may reduce the number of subsequent audits for the project in accordance with the audit thresholds instrument as amended from time to time, but must not increase the number. (7) Subsection (6) does prevent the Regulator from varying the number of subsequent audits for the project under subsection (5) (large projects). Meaning of annual average abatement amount (8) The annual average abatement amount, for an offsets project, means the forward abatement estimate for the project divided by the number of years in: (a) the crediting period for the project; or (b) if the project has more than one crediting period—the last crediting period for the project. (9) For the purpose of working out the annual average abatement amount for a transitioning project, the forward abatement estimate for the project must be given to the Regulator within 60 days after the commencement day. Meaning of large project (10) An eligible offsets project is a large project if the project has an annual average abatement amount of more than 250 000 tonnes of carbon dioxide equivalent.