(1) This section applies if:

(a)

under a provision of an agreement made as mentioned in Division 3 (or a provision of the former Act that corresponds to that Division) between the Commonwealth and the relevant authority of a non-government body, the Minister or the relevant Minister (as appropriate) has determined that the authority is to pay an amount to the Commonwealth; and

(b)

an amount (the amount repayable ) that is all or a part of the amount mentioned in paragraph (a) remains unpaid.

(2) The Minister may make a determination reducing an amount that is authorised to be paid to a State for the non-government body under any provision of this Act in any program year by an amount not more than the amount repayable. (3) The Minister may make a determination under a provision of this Act increasing the maximum amount that may be paid to the States for any purpose under that provision in any program year by an amount or amounts totalling not more than the amount of any reduction under subsection (2). (4) It does not matter whether the reduction was made in relation to the same provision as the provision mentioned in subsection (3), or a different provision.