11Condition of financial assistance—recovering amounts

11 Condition of financial assistance—recovering amounts

(1) For the purposes of section 24 of the Act, if the Minister makes a determination under paragraph 110(1)(a) of the Act that a State or Territory pay to the Commonwealth a specified amount, the State or Territory must (subject to subsection (6)) pay the amount by the time specified in the determination. Assigning rights of recovery to the Commonwealth or recovering debts (2) A State or Territory must ensure that there is in force an arrangement (whether by or under a law, or otherwise) that complies with subsection (3) in relation to each approved authority, block grant authority or non‑government representative body to whom the State or Territory may pay an amount of financial assistance in accordance with the Act. (3) An arrangement in relation to an approved authority, a block grant authority or a non‑government representative body must provide that if: (a) the Minister makes a determination under paragraph 110(1)(a) of the Act that the State or Territory must pay to the Commonwealth a specified amount; and (b) the Minister makes the determination as a result of: (i) non‑compliance or a breach by the authority or body mentioned in section 108 of the Act; or (ii) a payment mentioned in subsection 109(1), (2) or (4) or paragraph 109(3)(a) of the Act that was paid to the State or Territory for the authority or body; then the amount mentioned in paragraph (a) of this subsection is a debt due by the authority or body to the State or Territory, and may be recovered by the State or Territory (or another person on behalf of the State or Territory) in a court. (4) The State or Territory must: (a) assign to the Commonwealth the right to recover the debt; or (b) promptly recover the debt from the authority or body. (5) The Commonwealth must accept the assignment by the State or Territory of the right to recover the debt. (6) If the State or Territory assigns to the Commonwealth the right to recover the debt due by the authority or body, then: (a) the debt may be recovered by the Minister, on behalf of the Commonwealth, in a court of competent jurisdiction; and (b) the debt due by the State or Territory to the Commonwealth that arises under subsection 111(1) of the Act is taken to be extinguished (and the State or Territory is not required to pay the amount to the Commonwealth under subsection (1) of this section).