(1) Subject to subsection 43-4(2), * residential care subsidy is payable by the Commonwealth in advance, in respect of a * payment period, at such times as the Secretary thinks fit.
(2) The Secretary must work out the amount of an advance to be paid to an approved provider in respect of the first * payment period or the second payment period for a residential care service by estimating the amount of * residential care subsidy that will be payable for the days in that period.
(3) The Secretary must work out the amount of an advance to be paid to an approved provider in respect of subsequent * payment periods for a residential care service by:
(a) estimating the amount of * residential care subsidy that will be payable (taking into account any deductions under subsection 43-1(3)) for the days in the period; and
(b) increasing or reducing that amount to make any adjustments that the Secretary reasonably believes are necessary to take account of likely underpayments or overpayments in respect of advances previously paid under this section.
(4) The amounts of advances must be worked out in accordance with any requirements set out in the Subsidy Principles.
(5) The Secretary may, in deciding whether to reduce the amount of an advance under paragraph (3)(b), take into account the likelihood of the Commonwealth's right to recover a particular overpayment being waived under section 95-6.
Note: Subsection (5) allows the Secretary to take account of waivers in respect of overpayments caused, for example, by some cases of incorrect determinations of the * ordinary incomes of care recipients.