Contingent Liability and Repayment of Grants
The Commonwealth maintains a right to repayment of grants for 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. It is a grant condition that approved authorities advise the BGA should such a circumstance arise. 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.
In respect of grants greater than $75,000, 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 the case of furniture and equipment, the Approved Authority must undertake to use items for educational purposes for the economical life of the item.
A summary of the contingent liability and amortisation of grants arrangements of each level of Government can be accessed here.