Document ID: chunk:federal_register_of_legislation:F2025C00214:clause:1_7:p2
Version: federal_register_of_legislation:F2025C00214
Segment Type: clause
Provision Reference: sch 1 cl 7 (pt 2/11)
Character Range: 18516–21370

if it has not already been upgraded).

Notifying proprietor of receipt of application
 (3) If:
 (a) the Secretary receives an application under subclause (2) of this clause for an exemption in respect of the equipment; and
 (b) the application complies with subclause (2);
the Secretary must notify the relevant proprietor for the equipment in writing that the Secretary has received the application.

Effect of application on capital sensitivity requirements
 (4) Clause 1.2.1 does not apply to a service that is performed on the equipment during the period:
 (a) starting when the Secretary notifies the relevant proprietor under subclause (3) of this clause that the Secretary has received an application in respect of the equipment; and
 (b) ending when the Secretary makes a decision on the application under clause 1.2.8, or the application is withdrawn.

1.2.8  Equipment unable to be replaced etc. before end of applicable life age—granting exemptions

Scope of this clause
 (1) This clause applies if, under subclause 1.2.7(3), the Secretary notifies the relevant proprietor for diagnostic imaging equipment that the Secretary has received an application for an exemption in respect of the equipment.

Granting exemption
 (2) The Secretary must, by notice in writing given to the proprietor:
 (a) subject to subclauses (3) and (4) of this clause, grant the exemption for a specified period; or
 (b) refuse to grant the exemption.
 (3) The Secretary must not grant the exemption unless the Secretary is satisfied that both of the following apply:
 (a) due to circumstances beyond the control of the proprietor, the proprietor is unable to replace the equipment (or upgrade the equipment, if it has not already been upgraded) before the end of its applicable life age;
 (b) the proprietor is taking reasonable steps to replace the equipment (or upgrade the equipment, if it has not already been upgraded) before the end of the period specified under paragraph (2)(a).
 (4) The period specified under paragraph (2)(a) must end no later than 6 months after the end of the equipment's applicable life age.
Note: The period specified under paragraph (2)(a) is the initial exemption period of the exemption: see clause 3.1. The exemption period can be extended or further extended under clause 1.2.10.
 (5) The Secretary must make a decision on the application under subclause (2) within 28 days after notifying the proprietor as mentioned in subclause (1).

Effect of exemption or refusal on capital sensitivity requirements
 (6) If the Secretary grants the exemption, clause 1.2.1 does not apply to a service that is performed on the equipment during the exemption period of the exemption (including the exemption period as extended or further extended under clause 1.2.10, if applicable).
 (7) If the Secretary refuses to grant the exemption, clause