(1) Subject to subsection (2), non-compliance deductions apply in respect of a residential care service if conditions specified in the Subsidy Principles, to which the allocation of the * places included in the service are subject under section 14-5 or 14-6, have not been met.
(2) The Subsidy Principles may specify circumstances in which non-compliance deductions do not apply even if the conditions referred to in subsection (1) have not been met.
(3) The Secretary must notify the approved provider conducting a residential care service if, in respect of a * payment period, non-compliance deductions apply in respect of the residential care service. The notice must be in writing and must set out why non-compliance deductions apply.
(3A) A notice given under subsection (3) is not a legislative instrument.
(4) The amount of a non-compliance deduction is the amount worked out in accordance with the Subsidy Principles.
Note: Non-compliance deductions do not affect the maximum fees payable by residents (see Division 58).