159Significant risk of a significant adverse impact—threshold amounts

159 Significant risk of a significant adverse impact—threshold amounts

(a) is made for the purposes of sections 27(6), 28(6), 29(6), 30(6) and 31(6) of the Act; and

(b) sets out the amount that is taken to be the probability-weighted impact cost of an operation for the purposes of those sections; and

(c) sets out the amount that is taken to be the threshold amount for the purposes of those sections.

(2) The probability-weighted impact cost is identified in 2 forms—

(a) the cost of the economic consequences of an adverse impact, worked out using the formula in regulation 158(3); and

(b) the cost of the economic consequences of an adverse impact relative to the potential economic value of operations that are being, or could be, carried on, worked out using the formula in regulation 158(4).

To be certain of whether a risk is, or is not, to be treated as a significant risk of the occurrence of a significant adverse impact—

(a) the cost of the economic consequences of an adverse impact is used for the purposes of comparison with the first threshold amount; and

(b) the cost of the economic consequences of an adverse impact relative to the potential economic value of operations that are being, or could be, carried on, is used for the purposes of comparison with the second threshold amount.

If either cost exceeds its relevant threshold, the risk is to be treated as a significant risk of the occurrence of a significant adverse impact.

(3) For the purposes of the financial year starting on 1 July 2021—

(a) the first threshold amount is $5 000 000; and

(b) the first threshold amount is used for comparison with the cost of the economic consequences of an adverse impact, worked out using the formula in regulation 158(3).

(4) For the purposes of the financial year starting on 1 July 2021—

(a) the second threshold amount is to be used if the cost of the economic consequences of an adverse impact, worked out using the formula in regulation 158(3), is—

(i) less than the first threshold amount; and

(ii) more than $500 000; and

(b) the second threshold amount is 0·0015; and

(c) the second threshold amount is used for comparison with the cost of the economic consequences of an adverse impact relative to the potential economic value of operations that are being, or could be, carried on, worked out using the formula in regulation 158(4).

(5) For the purposes of a base year later than 2021, the first threshold mentioned in subregulation (3)(a) is increased using the formula—

where—