Part 1Conditions relating to expenditure of payments

Part 1: Conditions relating to expenditure of payments

1.1. A funding recipient must ensure that AusLink Roads to Recovery payments are:

(a) spent only on the construction or maintenance of roads;

(b) spent only on projects which are identified in the works schedule submitted by the funding recipient in accordance with clause 4;

(c) spent only on work on projects which are in progress on or after 1 July 2005 and for which payment is required on or after 1 July 2005; and

(d) not spent on meeting any part of a price paid by the funding recipient for a supply acquired by the funding recipient where:

(i) the supply is a supply within the meaning of the A New Tax System (Goods and Services Tax) Act 1999; and

(ii) the part of the price represent the amount of GST payable on the supply by the entity which is making or which made, the supply.

Note: the terms ‘road’; ‘construction’ and ‘maintenance’ are defined in section 4 of the Act. The Department has issued Notes on Administration which give more detailed explanation of the content of these terms.

1.2 If the Commonwealth has specified, in relation to a particular AusLink Roads to Recovery payment, that the payment or a part of the payment is to be spent on a particular project involving the construction or maintenance of roads, the funding recipient concerned must ensure that the payment, or the part of the payment, is spent only on that particular project.

1.3. If:

(a) an AusLink Roads to Recovery payment is provided for a particular project specified by the Commonwealth; and

(b) that project costs less than the total AusLink Roads to Recovery payments provided in respect of that project; and

(c) the funding recipient wishes to spend the unspent AusLink Roads to Recovery payment on another project relating to the construction or maintenance of road;

the funding recipient must first obtain the approval of the Department of the expenditure of those payments on that other project.

1.4. A funding recipient must ensure that AusLink Roads to Recovery payments are spent within six months of receipt of the payment.

Note: The Minister has power under s.91 of the Act to waive a condition.

1.5 A funding recipient must spend all AusLink Roads to Recovery payments it receives by 31 December 2009.

1.6 If a funding recipient receives an amount as interest in respect of an AusLink Roads to Recovery payment in one financial year, the recipient must spend an amount equal to that amount on the construction or maintenance of roads in the next financial year and must be able to demonstrate that it has done so. This condition does not apply to councils which are to receive total funding of less than $1 million according to the list determined by the Minister under section 87(1) of the Act.