11Risk rated premium component

11 Risk rated premium component

(1) If a leviable provider is a new provider for a year, the amount of the provider’s risk rated premium component for the year is zero. (2) Otherwise, a leviable provider’s risk rated premium component for a year is worked out using the following method statement.

Method statement

Step 1: Multiply the total HELP students for the provider for the year by the amount determined in an instrument under section 13 for the purposes of this step for the year.

Step 2: Multiply the amount equal to the total amount of assistance paid to the provider under sections 96‑1 and 110‑1 of the Higher Education Support Act 2003 in the previous year by the percentage determined in an instrument under section 13 for the purposes of this step for the year.

Step 3: Add up the results of steps 1 and 2.

Step 4: For each risk factor determined in an instrument under section 13 for the purposes of this step for the year, work out the risk factor value for the provider for the year in accordance with the instrument.

Step 5: Add up the results of step 4 and add 1.

Step 6: Multiply the results of step 3 by the results of step 5. The result is the provider’s risk rated premium component for the year.