256Timing of payments

256  Timing of payments

Payment of subsidy

 (1) Subsidy payable under section 254 to a registered provider in relation to an approved residential care home is payable by the Commonwealth for a payment period at such times as the System Governor thinks fit.

Advances

 (2) If the System Governor pays an amount of subsidy in advance under subsection (1), the System Governor must work out the amount of the advance for the approved residential care home by:

 (a) for the first payment period or the second payment period for the registered provider for the home—estimating the amount of subsidy that will be payable under section 254 in relation to the home for the days in that period; and

 (b) for subsequent payment periods for the registered provider for the home by:

 (i) estimating the amount of subsidy that will be payable under section 254 in relation to that home (taking into account any deductions under subsection 261(1)) for the days in the period; and

 (ii) increasing or reducing that amount to make any adjustments that are necessary to take account of any underpayments or overpayments in respect of advances previously paid under this section.

 (3) The amounts of advances under subsection (2) must be worked out in accordance with any requirements prescribed by the rules.

 (4) The System Governor may, in deciding whether to reduce the amount of an advance under paragraph (2)(b), take into account the likelihood of the Commonwealth’s right to recover a particular overpayment being written‑off or waived under section 520 or 521.