Contingent Liability and Repayment of Grants


Australian Government

Under the Australian Government Capital Grants Program (CGP), the Commonwealth maintains a right to repayment for grants of more than $75,000, where funded facilities are no longer used to provide school education, or are sold or otherwise disposed of during the 20 year designated use period. The amount of funds repayable in these circumstances is dependent on the CGP grant amount and the number of years the facility was used for the provision of primary or secondary education.

State Government

In respect of grants greater than $75,000 received under the State Capital Assistance Scheme (SCAS), the Approved Authority must undertake to use the approved project for educational purposes for a period of 20 years. Failure to use the project for educational purposes could result in a liability of assistance repayment equal to 5% of assistance for each year of the 20 year period during which the building is not used for educational purposes.

In both grants programs, the Approved Authority must undertake to use furniture and equipment for educational purposes for the economical life of the item. Also, it is a condition of accepting a capital grant that approved authorities advise QIS BGA should circumstances such as those outlined above arise. 

Contigent Liability for Schools and their Approved Authorities

School's may access our Contigent Liability Template as a tool to develop a summary of their contigent liability, as it relates to past and present approved projects under the CGP and SCAS capital grants programs.  To access the template and use the tool, click here.

The document Recoverable Amounts of Capital Grants provides an overview of the contingent liability and amortisation of grants arrangements for each level of Government and can be accessed here.

Disclaimer: This material is provided to you on the understanding that QIS BGA is not engaged in rendering professional advice.  Before using this material, you should carefully evaluate its accuracy, currency, completeness and relevance for your purposes, and you should obtain any appropriate professional advice relevant to the particular circumstances of your school.  QIS BGA does not accept any legal or other liability for the material provided or any reliance by you on the material in the Contigent Liability Template. This material is assembled in good faith and is distributed as guidance only.  QIS BGA reserves the right to change or amend any material in the Contigent Liability Template and we are under no obligation to inform you of any changes or publish them.