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Service Agreement Information Kit for Funded Organisations

3.13 Cessation

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The department can require an organisation to immediately and permanently cease delivery of part of the services if:

  • the organisation fails to remedy a breach of the Service Agreement, within thirty days of receiving notice of the breach from the department
  • the organisation commits a serious or material breach of the Service Agreement which is not capable of remedy
  • the organisation behaves in a way that the department considers may be contrary to prevailing community standards, or may be regarded by the public as unacceptable, or may be detrimental to the reputation of the department if it continues its association with the organisation
  • the organisation breaches an essential term of the Service Agreement. Essential terms of the Service Agreement are clauses 3.1(e), 3.6, 4.4, 4.5, 4.6 and 4.7.

The department will act reasonably and fairly when considering the cessation of services. Written notice will be provided to the organisation as soon as possible when the department requires the organisation to cease delivery of part of the services. The department may also stop payment of part of the corresponding funding at the same time as ceasing part of the services. The department may fund a third party to deliver any services that have been ceased to ensure continuity of service for people accessing the services.

The department can also require an organisation to permanently cease delivery of part of the services by giving three months’ written notice if:

  • the department does not receive sufficient funds from either the Victorian Parliament or the Commonwealth Government to finance the program or part of the services
  • there is a change in Victorian Government policy that affects the program or part of the services.

In these particular circumstances (i.e. where services are being ceased due to not receiving sufficient funding or a change in policy), the department will advise the organisation of any further actions that the department reasonably expects to take in relation to or as a result of the cessation of services.