9ACapital grants to eligible organisations

9A Capital grants to eligible organisations

(1) Subject to subsection (2), the Minister may, upon application in writing by an eligible organisation, by instrument in writing, approve the payment to the organisation of financial assistance by way of a grant towards capital works costs in respect of a hostel operated or proposed to be operated by that organisation. (2) Where the Minister approves the payment of financial assistance to an eligible organisation under subsection (1), the Minister shall, in the instrument of approval: (a) specify the amount of the financial assistance as determined in accordance with guidelines formulated under section 9B; (b) specify the time or times at which, and the instalments (if any) in which, the financial assistance is to be paid; and (c) specify the conditions on which the financial assistance is granted. (3) The conditions that may be specified for the purpose of paragraph (2)(c) include, but are not limited to, conditions with respect to: (a) the amounts to be applied by the eligible organisation towards the capital works costs in respect of the hostel; (b) the furnishing of information; (c) the class or classes of persons to be accommodated at the hostel; (d) compliance by the eligible organisation with conditions to which a grant of financial assistance under Division 4 is subject; (e) the provision of certificates with respect to the fulfilment of conditions; (f) the repayment of financial assistance; (g) the giving of security for the repayment of financial assistance or the payment to the Commonwealth of amounts (whether or not exceeding the amount of financial assistance) that under the terms and conditions are to be taken as representing the Commonwealth’s interest in: (i) land acquired (with or without buildings); (ii) buildings acquired, erected, altered or extended; and (iii) equipment acquired, altered or installed; as a result of the application of the financial assistance or of the financial assistance and other money; and (h) the use and disposal of, and the recovery of amounts (whether or not exceeding the amount of financial assistance) that under the conditions are to be taken as representing the Commonwealth’s interest in: (i) land acquired (with or without buildings); (ii) buildings acquired, erected, altered or extended; and (iii) equipment acquired, altered or installed; as a result of the application of the financial assistance or of the financial assistance and other money. (4) In an instrument of approval, the Minister may comply with paragraph (2)(a) by specifying a method of calculating the amount of the financial assistance. (5) A payment under this section shall not be made except to: (a) a corporation in which; (b) trustees in whom; or (c) any other organisation declared by the Minister under subsection 2(5) in which; the hostel is, or is to be, vested. (6) If: (a) immediately before the commencement day, a grant of financial assistance in respect of a hostel was payable in accordance with an approval under subsection (1); and (b) on or after the commencement day, the residential care service that corresponds to the hostel is granted extra service status under Division 32 of the Aged Care Act 1997; the financial assistance ceases to be payable. (7) If: (a) immediately before the commencement day, a grant of financial assistance in respect of a hostel was payable in accordance with an approval under subsection (1); and (b) on or after the commencement day, a distinct part of the residential care service that corresponds to the hostel is granted extra service status under Division 32 of the Aged Care Act 1997; and (c) when the distinct part was granted extra service status, some or all of the financial assistance (the remaining amount) had not been paid; the remaining amount is to be reduced in accordance with subsection (8). (8) The remaining amount is to be reduced by an amount worked out using the formula: