(1) This section applies if:
(a) under a provision of an agreement made as mentioned in Division 3 between the Commonwealth and an approved government school community organisation, the Minister has determined that the organisation 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 organisation under section 69 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 (whether section 69 or a different provision) 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).