No, you are wrong on this. AusIndustry only accepts the application and processes the payment. As it is in my original post the scheme is self-determined. Those words in quotes are directly from the site.
To get an R & D grant you download the form and fill it in, tick all the boxes and then sign a declaration that you believe that you meet the criteria. AusIndustry then processes your application and pays you your money.
AusIndustry does not approve anything and the receiving the grant does not mean it has been approved. A self-determined scheme is one where you make a declaration that you have read the guidelines and accept liability if you are wrong.
Read the guidelines I linked to it explains it all clearly.
You take the grant you accept the risk that it mat be required to pay it back.
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