Document ID: chunk:federal_register_of_legislation:C2018C00226:section:25
Version: federal_register_of_legislation:C2018C00226
Segment Type: section
Provision Reference: s 25
Character Range: 35560–37911

25  State or State authority using funding payment to acquire interest in land—obligation if the interest is sold or disposed of
 (1) If the funding recipient is a State or an authority of a State, and the recipient sells or disposes of an interest in land that was acquired using all or part of the funding payment—the recipient must, subject to subsection (2), pay to the Commonwealth an amount calculated using the formula:

where:
acquisition cost means the amount paid by the funding recipient to acquire the interest (but not deducting any other costs associated with that acquisition).
Commonwealth contribution means so much of the funding payment as was used to meet the acquisition cost.
consideration or value means the greater of:
 (a) the consideration received by the funding recipient for the sale or disposal (but not deducting any costs associated with that sale or disposal); and
 (b) the market value of the interest at the time of the sale or disposal.
 (1A) The funding recipient must, as soon as practicable after selling or disposing of an interest in land that was acquired using all or part of the funding payment, notify the Minister of the sale or disposal.
 (2) The funding recipient may instead, with the written approval of the Minister, spend an amount equal to the amount worked out under subsection (1) on approved purposes in relation to another Investment Project.
 (3) The Minister may, in writing, vary or revoke an approval referred to in subsection (2).
 (4) If the funding recipient spends an amount in accordance with subsection (2) on another Investment Project, then, for the purposes of the application of this Act in relation to that other project:
 (a) the funding recipient is taken to have received a payment of Commonwealth funding in relation to that other project equal to the amount so spent; and
 (b) the amount so spent is taken to have been paid out of that payment of Commonwealth funding.
 (5) An instrument granting, varying or revoking an approval referred to in subsection (2) is not a legislative instrument.
 (6) For the purposes of this section, a reference to acquiring an interest in land using all or part of the funding payment includes a reference to compulsorily acquiring an interest in land and using all or part of the funding payment to pay compensation for the acquisition.