Dairy Industry Adjustment Act 2000

Overview

The Dairy Industry Adjustment Act 2000, enacted by the Parliament of Australia, was introduced to address the need for a structured adjustment process within the dairy industry in response to deregulation. This Act amends the Dairy Produce Act 1986 to facilitate the implementation of the Dairy Industry Adjustment Program, which is designed to support the dairy industry's transition. The key objectives include the establishment of a framework for providing grants to assist dairy farmers, the introduction of a dairy adjustment levy to fund these grants, and the creation of the Dairy Structural Adjustment Fund to manage and disburse these funds. The Act outlines the eligibility criteria, payment calculations, and the administrative process for these grants, ensuring a fair and systematic approach to support the industry during this period of change. The policy objective of this Act is to ensure a smooth transition for the dairy industry by providing financial support through the Dairy Structural Adjustment Program (DSAP) and the Dairy Exit Payments (DEP) scheme. These measures aim to mitigate the economic impact on dairy farmers and maintain the stability of the industry. The Act establishes the Dairy Adjustment Authority to oversee the implementation of the DSAP and DEP schemes, ensuring compliance and fairness in the distribution of funds. Additionally, it sets up mechanisms for the collection and management of the dairy adjustment levy, ensuring adequate funding for the support programs.

Scope and Application

The Dairy Industry Adjustment Act 2000 is a Commonwealth Act that amends the Dairy Produce Act 1986 and provides a framework for the implementation of the Dairy Industry Adjustment Program, which includes the Dairy Structural Adjustment Program (DSAP) and the Dairy Exit Payment (DEP) scheme. The Act applies to entities such as individuals, bodies corporate, bodies politic, and trustees of trust estates, which held an eligible interest in a dairy farm enterprise on 28 September 1999. The Act aims to assist the dairy industry in adjusting to deregulation by providing financial assistance through grants, subject to eligibility criteria and various conditions. The DSAP scheme provides for the grant of payment rights based on milk deliveries during the 1998-1999 financial year, while the DEP scheme provides for dairy exit payments for farmers who choose to leave the industry. The Act establishes the Dairy Adjustment Authority to administer the DSAP scheme, and the Dairy Structural Adjustment Fund is created to manage the financial resources for the program. The Act also sets out provisions for the collection of a dairy adjustment levy on the sale of leviable milk products, which is to be paid into the Dairy Structural Adjustment Fund. The Act applies nationally, as it is a Commonwealth Act, and its provisions extend to the regulation of entities, levy collection, and the administration of the DSAP scheme and DEP scheme. The Act does not apply to Schedule 2, which deals with the DEP scheme and related matters. The Act includes provisions for the exclusion of certain information and documents from disclosure, and it outlines penalties for non-compliance and offences related to the administration of the Act and the schemes it establishes. The Act's application is not limited by its use of the present tense, as it also applies to events occurring before its commencement. The Act allows for the variation of the DSAP scheme through subordinate instruments, while the DEP scheme can be formulated by the Minister under the authority of the Farm Household Support Act 1992.

Key Provisions

• The Dairy Industry Adjustment Act 2000, which amends the Dairy Produce Act 1986, introduces a framework for the implementation of the Dairy Industry Adjustment Program. This program is designed to help the dairy industry adjust to deregulation through two types of grants: DSAP payments (administered under Schedule 1) and dairy exit payments (administered under Part 9C of the Farm Household Support Act 1992). The DSAP payments are calculated based on 1998-1999 milk deliveries at a rate of 46.23 cents per litre for market milk and an average of 8.96 cents per litre for manufacturing milk. The Dairy Adjustment Authority (DAA) is established to administer DSAP payment rights, and these payments are funded by a dairy adjustment levy on milk products, which is credited to the Dairy Structural Adjustment Fund. The Act outlines the main operative sections and provides details on the eligibility criteria, types of payment rights, and the calculation of payment rights.
• The Act imposes several obligations on the parties involved. Entities must comply with rules for farm business assessments and provide truthful and accurate information when making claims for payment rights. The Minister is required to formulate a DSAP scheme within 14 days of the commencement of Schedule 1. The DAA must conduct a public information program about the scheme, obtain and record information that assists in making claims for payment rights, and make reasonable efforts to invite entities to make claims if it believes such claims may be in the entity's interest. The DSAP scheme must also provide for the division of payment rights into units, the registration of units, and the making of payments by the Corporation to registered owners of units. The scheme may contain ancillary or incidental provisions and may be varied but not revoked. The Act also establishes specific rules for the protection of confidentiality of information, the recovery of scheme debts, and the cancellation of units under certain conditions.
• The Act includes provisions for offences and penalties for breaches. For instance, a person is guilty of an offence if they make a false or misleading statement in connection with a claim for a payment right, with a penalty of imprisonment for up to 12 months. Similarly, if a person produces a false or misleading document in compliance with the DSAP scheme or the Act, they are guilty of an offence with the same penalty. A person who engages in conduct that contravenes a requirement to remit a levy is liable to a penalty of 230 penalty units or imprisonment for up to 12 months, or both. Additionally, if a person obstructs or hinders an authorised person in the exercise of their power under the Act, they are guilty of an offence with a penalty of 30 penalty units. Other penalties include fines of up to 60 penalty units for offences related to providing false or misleading information, and 50 penalty units for offences related to record-keeping requirements. The Act also includes provisions for the remission of penalties and the collection of money from third parties who owe money to entities with scheme debts.
• The Act introduces various amendments to other Acts, including the Bankruptcy Act 1966, the Farm Household Support Act 1992, the Income Tax Assessment Act 1997, the Remuneration Tribunal Act 1973, and the Social Security Act 1991. These amendments include changes to definitions, the introduction of new schemes, and the provision of exemptions and penalties for non-compliance. For example, dairy exit payments are introduced as a form of financial assistance for people on the sale of dairy farm enterprises. The Act also specifies that certain payments and information are not to be included in the definition of "payment" and "Act" in certain sections, ensuring that the new provisions do not conflict with existing regulations.

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