54Failure to spend agreed amount

54 Failure to spend agreed amount

(1) This section applies if a grantee’s eligible expenses in relation to eligible products for a financial year are less than the agreed eligible expenses for the financial year. (2) The amount of an instalment or instalments remaining payable under the grant agreement must be reduced, in accordance with any terms specified in the grant agreement for this purpose, so as to ensure that the amount of the grant under the agreement does not exceed half of the total amount spent by the grantee on eligible expenses in relation to eligible products for the financial years to which the grant agreement applies.

Note: Grant agreements must also include terms and conditions that provide for circumstances in which the grantee must repay amounts to the Commonwealth (see subparagraph 10(2)(b)(i) of the Act).