A refinancing gain should not be considered a windfall for the project or government party itself. Refinancing gains will be accounted for as consolidated revenue in the first instance. Therefore, the decision on how to take the gains is one in which DTF should be consulted.
Any proposal by the government party to apply gains to the project itself, such as to address affordability concerns or to invest in facility improvements, will be assessed on a case by case basis through existing DTF budgeting processes.
Partnerships Victoria projects are of finite length, with the debt remaining within the project generally reducing over time. This reduction in debt over time means that the potential gains or losses to be made from refinancing the debt will diminish (other things being equal) the later in a project a refinancing is undertaken.