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Service Agreement Information Kit for Funded Organisations

3.7.3 Disposal of assets

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Disposal of as asset refers to when an asset is sold, lost, transferred, destroyed or scrapped. If an asset is traded in, it will be treated as a disposal.

Any asset specifically funded by the department that is worth over $5,000 (exclusive of GST) at the time of disposal can only be disposed of with the department's prior consent under clause 7.2. The department's consent is not required for the disposal of assets worth $5,000 or under (exclusive of GST) at the time of the disposal.

When an asset is sold  or otherwise disposed of, the details of the disposal (such as sale proceeds) are to be recorded in the organisation's financial records and recorded on the asset register.

Where an asset is disposed of the department may:

  • reduce the amount of funding payable under the Service Agreement by the depreciated value of the asset; or 
  • request the organisation to reimburse the department of an amount equal to the depreciated value of the asset.

The department will advise the organisation in writing if funding is to be reduced or amounts are to be reimbused to the department following the disposal of an asset. This information will be provided at the time the department is considering the request to sell or otherwise dispose of the asset.