12Allocation among the States of untied grants in first grant year

#### 12 Allocation among the States of untied grants in first grant year (1) For the purposes of this section, the Australian Capital Territory is not to be taken to be a State. (2) Subject to sections 6 and 15, the Minister in authorising untied grants in the first grant year is to ensure that the amounts of those grants are allocated among the States in accordance with this section. (3) Subject to subsection (6), $146,000,000 is to be allocated among the States in the proportions determined by the Minister to be appropriate but so that no State is allocated less than $7,300,000. (4) Subject to subsection (6), $310,504,000 is to be allocated among the States in accordance with Schedule 2. (5) Subject to subsection (6), the balance of the amounts is to be allocated among the States in the proportions determined by the Minister to be appropriate. (6) Where grants to a State cannot be authorised in the first grant year because there is no housing agreement with the State in force in that year, the amounts that the Minister determines would have been allocated for untied grants to that State in that year under subsections (3), (4) and (5) are to be dealt with as follows: (a) where advances to that State that may be retained by that State in accordance with arrangements under section 17 were made out of the amounts—the amount of the advances is to be so retained by that State; (b) the amounts, less the amount retained under paragraph (a), may be allocated in that year among such of the States and the Australian Capital Territory with which a housing agreement is in force in that year, and in such proportions, as the Minister determines to be appropriate. (7) This section does not affect the operation of any priority provision in a housing agreement.