42  Eligibility payment or deed of financial security required for maximum eligibility points

 (1) An applicant must secure the applicant’s maximum eligibility points specified in its eligibility nomination form or updated eligibility nomination form by:

 (a) making a payment (eligibility payment) of the required amount to the ACMA; or

 (b) giving the ACMA a deed of financial security for the required amount; or

 (c) both:

 (i) making a payment (eligibility payment) for part of the required amount to the ACMA; and

 (ii) giving the ACMA a deed of financial security for the remainder of the required amount.

Note 1: For information on how an eligibility payment is made, see section 10. For information on how a deed of financial security is given, see section 7 and subsections (9) and (10).

Note 2: An applicant must act in accordance with this subsection by the eligibility deadline or, if there is one, the extended eligibility deadline: see subsections 31(7) and 48(4).

 (2) In this section, the required amount for an applicant (when expressed in dollars) is 10% of the sum of, for each product, the amount calculated by multiplying:

 (a) the sum of:

 (i) the provisional start demand of the applicant (when expressed in lots) for the product; and

 (ii) if the applicant is a set-aside participant and the product is the 900 upper major population product – 1 set-aside lot of the 900 upper major population product; and

 (iii) if the applicant is a set-aside participant and the product is the 900 upper regional product – 1 set-aside lot of the 900 upper regional product;

 by:

 (b) the starting price for the lots of the product.

 (3) If an applicant makes an eligibility payment or gives a deed of financial security, or both, for an amount (the incomplete amount) less than the required amount, the ACMA must, in writing, notify the applicant that:

 (a) the applicant has made an eligibility payment or given a deed of financial security, or both, whichever is the case, for less than the required amount; and

 (b) the applicant must, before the eligibility deadline or extended eligibility deadline (if there is one), or no later than 3 working days after the date of the notice, whichever is the later, make a payment (eligibility payment) or give a deed of financial security, or both, for the remainder of the required amount.

 (4) If the applicant:

 (a) is not a set-aside participant; and

 (b) does not comply with the notice given under subsection (3);

 (c) subject to paragraph (e), the maximum eligibility points secured by the applicant is calculated by:

 (i) first, dividing the incomplete amount by the required amount; and

 (ii) second, multiplying the quotient from subparagraph (i) by the maximum eligibility points specified by the applicant in its completed eligibility nomination form (or updated eligibility nomination form); and

 (iii) third, rounding down the result from subparagraph (ii) to the nearest whole point, or zero if the result is less than one; and

 (d) the provisional start demands of the applicant are reduced, commencing with a lot or lots of the product with the lowest lot rating being removed from the applicant’s provisional start demand, until the sum of the lot ratings for the remaining provisional start demands of the applicant is not greater than the maximum eligibility points secured by the applicant calculated under paragraph (c); and

 (e) if, for the applicant, after the steps in paragraphs (c) and (d) are taken, the difference between:

 (i) the maximum eligibility points secured by the applicant (the provisional secured points); and

 (ii) the sum of the lot ratings for the number of lots of each product for which the applicant has a provisional start demand;

  is greater than zero – that difference is subtracted from the provisional secured points to give the number of maximum eligibility points secured by the applicant.

 (5) If:

 (a) the applicant is a set-aside participant; and

 (b) the applicant does not comply with the notice given under subsection (3); and

 (c) the incomplete amount is greater than 10% of the sum of:

 (i) the starting price for lots of the 900 upper major population product; and

 (ii) the starting price for lots of the 900 upper regional product;

 (d) subject to paragraph (f), the maximum eligibility points secured by the applicant is calculated by:

 (i) first, subtracting 10% of the sum of the starting price for lots of the 900 upper major population product and the starting price for lots of the 900 upper regional product from the required amount (reduced required amount); and

 (ii) second, subtracting 10% of the sum of the starting price for lots of the 900 upper major population product and the starting price for lots of the 900 upper regional product from the incomplete amount (reduced incomplete amount); and

 (iii) third, dividing the reduced incomplete amount by the reduced required amount; and

 (iv) fourth, multiplying the quotient from subparagraph (iii) by the maximum eligibility points specified by the applicant in its completed eligibility nomination form (or updated eligibility nomination form); and

 (v) fifth, rounding down the result from subparagraph (iv) to the nearest whole point, or zero if the result is less than one; and

 (e) the provisional start demands of the applicant are reduced, commencing with a lot or lots of the product with the lowest lot rating being removed from the applicant’s provisional start demand, until the sum of the lot ratings for the remaining provisional start demands of the applicant is not greater than the maximum eligibility points secured by the applicant calculated under paragraph (d); and

 (f) if, after the steps in paragraphs (d) and (e) are taken, the difference between:

 (i) the maximum eligibility points secured by the applicant (the provisional secured points); and

 (ii) the sum of the lot ratings for the number of lots of each product for which the applicant has a provisional start demand;

  is greater than zero – that difference is subtracted from the provisional secured points to give the number of maximum eligibility points secured by the applicant.

 (6) If:

 (a) the applicant is a set-aside participant; and

 (b) the applicant does not comply with the notice given under subsection (3); and

 (c) the incomplete amount is less than 10% of the sum of:

 (i) the starting price for lots of the 900 upper major population product; and

 (ii) the starting price for lots of the 900 upper regional product;

  the applicant is not entitled to bid during the primary stage and the secondary stage.

 (7) If:

 (a) as a result of paragraph (4)(c), (4)(e), (5)(d) or (5)(f) the applicant has zero maximum eligibility points; or

 (b) as a result of paragraph (4)(d) or (5)(e), the applicant has no provisional start demands;

 (c) for a set-aside participant – the set-aside participant is not entitled to bid during the primary stage and the secondary stage; or

 (d) in any other case – the applicant is taken to have withdrawn its application.

 (8) The ACMA must:

 (a) if an applicant has had its maximum eligibility points and provisional start demands calculated in accordance with subsection (4) or (5) – enter the amounts calculated for the applicant in the register and tell the applicant in writing; or

 (b) if a set-aside participant is not entitled to bid during the primary stage or secondary stage as a result of subsection (6) or paragraph (7)(c) – tell the set-aside participant in writing; or

 (c) if an applicant is taken to have withdrawn its application under paragraph (7)(d) – tell the applicant in writing.

 (9) A deed of financial security must be executed by:

 (a) an authorised deposit-taking institution within the meaning of the Banking Act 1959; or

 (b) a person authorised to carry on business in Australia as an insurer under the Insurance Act 1973; or

 (c) a Lloyd’s underwriter authorised to carry on insurance business under Part VII of the Insurance Act 1973.

 (10) If a deed of financial security is executed by a person acting under a power of attorney for a body corporate, the applicant must give the ACMA a copy of the power of attorney with the deed.

 (11) If:

 (a) the ACMA is not satisfied that the person executing a deed of financial security, given to the ACMA by the applicant, is a person mentioned in subsection (9); or

 (b) an applicant fails to comply with subsection (10);

 (c) for a set-aside participant – the set-aside participant is not entitled to bid during the primary stage and the secondary stage; or

 (d) in any other case – the applicant is taken to have withdrawn its application.

 (12) The ACMA must:

 (a) if a set-aside participant is not entitled to bid during the primary stage and the secondary stage as a result of paragraph (11)(c) – tell the set-aside participant in writing; or

 (b) if an applicant is taken to have withdrawn its application under paragraph (11)(d) – tell the applicant in writing.

 (13) For paragraphs (4)(d) and (5)(e), if the lots of 2 or more products have the same lot rating, the ACMA may select the order in which the lots of those products are removed from the applicant’s provisional start demand.

Division 5 Changes to starting prices, and related matters