261Deduction for fees

261  Deduction for fees

 (1) The System Governor may deduct from the total amount of person‑centred subsidy and provider‑based subsidy otherwise payable to a registered provider for a service delivery branch or approved residential care home under section 250 or 254, deductions for fees covered by an agreement referred to in subsection (2).

 (2) The System Governor may, on behalf of the Commonwealth, enter into an agreement with a registered provider, under which:

 (a) amounts equal to the fees payable by the registered provider for applications made under this Act are to be deducted from amounts of person‑centred subsidy and provider‑based subsidy otherwise payable to the registered provider for the service delivery branch or approved residential care home specified in the agreement; and

 (b) so far as amounts are so deducted, the registered provider ceases to be liable to the Commonwealth for payment of the fees.