Document ID: chunk:federal_register_of_legislation:C2017C00106:section:5:p14
Version: federal_register_of_legislation:C2017C00106
Segment Type: section
Provision Reference: s 5 (pt 14/24)
Character Range: 37364–40067

first and second grant years, respectively.

18. (1) Subject to sub‑clause (4), the Commonwealth will provide financial assistance to the State in respect of each grant year following the second grant year of an amount equal to the sum of—
    (a) the amount that is the product of the indexation factor and the amount of financial assistance paid to the State in the immediately preceding grant year; and
    (b) such other amounts as are agreed upon for the purposes of this paragraph by the Commonwealth Minister and the State Minister.

(2) Subject to sub‑clause (4), the State will provide from its own resources and apply, or cause local governments and community organisations to provide from their own resources and apply, for expenditure in relation to approved projects in respect of each grant year following the second grant year of an amount equal to the sum of—
    (a) the amount that is the product of the indexation factor and the amount expended by the State, local governments and community organisations in relation to approved projects in the immediately preceding grant year; and
    (b) such other amounts as are agreed upon for the purposes of this paragraph by the Commonwealth Minister and the State Minister.

(3) For the purposes of paragraphs (1) (a) and (2) (a), the indexation factor is—
    (a) in respect of the third grant year—a number not exceeding 1.2 agreed upon in writing between the Commonwealth Minister and the State Minister in the second grant year or within such longer period as is agreed upon by the Commonwealth Minister and the State Minister; or
    (b) in respect of a grant year following the third grant year—the number 1.2 unless the Commonwealth Minister and the State Minister agree in writing in the immediately preceding grant year upon a different number.

(3A) Where a different number is agreed upon in accordance with paragraph (3) (b), that number shall, for the purposes of the operation of paragraphs (1) (a) and (2) (a), be substituted for the number 1.2 in respect of the first‑mentioned grant year.

(4) In the event that the parties fail to agree on the continued operation of this agreement consequent upon a review conducted in the third or any subsequent grant year (in this sub‑clause referred to as the "relevant grant year") pursuant to clause 31 then, in respect of each of the following 2 grant years—
    (a) the Commonwealth will provide financial assistance of an amount equal to the sum of—
        (i) the amount that is—
            (A) where the grant year is the first succeeding grant year after the relevant grant year—the product of the adjustment factor and the amount of financial assistance paid to the State in