35Ratio of cost impacts

35 Ratio of cost impacts

(1) If a facility is a trade‑exposed baseline‑adjusted facility in a financial year, the ratio of cost impacts for the facility for the financial year is worked out in accordance with this section. (2) If the assessed cost impact for the facility for the financial year is equal to or greater than the significant cost impact threshold for the facility, the ratio of cost impacts for the facility for the financial year is 1. (3) If the assessed cost impact for the facility for the financial year is less than the significant cost impact threshold for the facility, the ratio of cost impacts for the facility for the financial year is the number worked out using the following formula: Start formula start fraction CI subscript A minus CI subscript M over CI subscript S minus CI subscript M end fraction end formula where:

CIA is the assessed cost impact for the facility for the financial year.

CIM (known as the material cost impact threshold) is 0.03.

CIS is the significant cost impact threshold for the facility.

(4) The significant cost impact threshold for a facility is: (a) if the facility is a manufacturing facility—0.10; or (b) otherwise—0.08.