Risk rated premium component
11 Risk rated premium component
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.
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 VSL 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 loan amounts paid to the provider under section 19 of the VET Student Loans Act 2016 for 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.
The statute text is free to read above. View Pro plans to unlock the case-law research tools for each provision.