Farm Household Support Act 1992

Overview

The Farm Household Support Act 1992 was enacted by the Commonwealth Parliament to address the financial instability and hardship faced by farmers and certain small business operators due to exceptional circumstances, and to provide financial incentives for farmers to exit farming if they have no long-term prospects in the industry. The primary objective of this legislation is to offer financial relief and support to farmers and small business operators in exceptional circumstances, such as natural disasters or market collapse, while also encouraging sustainable practices within the agricultural sector. The Act provides for the payment of income support and advice to farmers who may not have a long-term productive, sustainable, and profitable future in farming, and it includes provisions for exceptional circumstances relief payments to both farmers and small business operators. Additionally, it establishes schemes to financially incentivise farmers to leave farming and to support those transitioning out of the industry.

Scope and Application

The Farm Household Support Act 1992, as amended, provides a framework for offering income support and advice to farmers facing financial difficulties, encouraging them to leave farming if necessary, and offering relief payments to farmers and small business operators in exceptional circumstances. The Act applies to Australian residents who are farmers, small business operators, or individuals who have previously received support under a Rural Adjustment Scheme (RAS). It provides for various support payments such as farm household support, exceptional circumstances relief payment, farm help income support, and clean energy advances. The Act also includes provisions for schemes like the farm help re-establishment grant scheme, the farm help advice and training scheme, and the Dairy Exit Payments (DEP) scheme. The Act's geographic reach is nationwide, as it is a Commonwealth Act. Certain exclusions apply, such as support not being payable if a farmer has already received farm household support for two years, or if a small business operator has received exceptional circumstances relief payment for a specified period. Additionally, payments are not made if the recipient is enrolled in a full-time course of education or vocational training, is receiving certain social security benefits, or has received payments from a Commonwealth funded employment program. The Act extends its application through subordinate instruments such as regulations, which may prescribe matters necessary for carrying out or giving effect to the Act.

Key Provisions

• The Farm Household Support Act 1992, as compiled and effective as of 1 July 2013, provides a framework for income support and financial incentives to farmers and small business operators under exceptional circumstances, and outlines the procedures and conditions for the provision of such support. The Act includes provisions for the payment of farm household support, exceptional circumstances relief payments, and farm help income support, as well as clean energy advances. To qualify for farm household support, a person must be a farmer, an Australian resident, in Australia, and have a certificate of inability to obtain finance in effect (s. 7). They must not have received such support for a continuous period of 2 years or periods totaling 2 years (s. 8). Similarly, to qualify for exceptional circumstances relief payment, a farmer must have a certificate of exceptional circumstances in effect and meet other specified criteria (s. 8A). For farm help income support, a person must be a farmer, at least 18 years old, and have obtained certain advice and developed an activity plan (s. 8B). The Act outlines specific circumstances under which these supports and payments are not payable, such as if a person is receiving other social security benefits or is a full-time student (ss. 9-13).
• The Act imposes various obligations on the parties it governs. Recipients of support must comply with notifications and information requirements set by the Secretary (ss. 41, 42). They must also notify the Department of any significant changes in circumstances, such as a change in financial situation or cessation of qualification for support (ss. 43-49). Failure to comply with these obligations can result in the automatic termination of support payments (ss. 43-49). The Act further mandates that farm household support, exceptional circumstances relief payments, and farm help income support are to be paid by way of grants (ss. 25-26B), while clean energy advances are to be paid as a single lump sum (s. 26C). Additionally, the Secretary has the authority to require recipients to obtain advice and training, and to determine the applicable rates and amounts of payments based on certain criteria (ss. 21-29B).
• Breaches of the provisions under the Farm Household Support Act 1992 can result in various civil and criminal consequences. For instance, failing to comply with a notice to inform the Department of specified events or changes in circumstances can lead to imprisonment for up to 6 months (ss. 41(5), 42(5)). Non-compliance with certain notification obligations regarding the receipt of farm help re-establishment grants can attract penalties of up to 30 penalty units for failure to notify of a return to farming and up to 20 penalty units for failure to notify a change of address within 5 years of receiving the grant (s. 52AC). Overpayments of support and payments can be recovered by the Commonwealth as debts (ss. 56, 56A). Furthermore, payments under the Act are inalienable, meaning they cannot be assigned, charged, or executed against (s. 55). The Act also stipulates that certain payments are to be made out of specific funds, such as the Consolidated Revenue Fund or the Dairy Structural Adjustment Fund (ss. 57, 57A).

Legal classification tags

Area of Law

Social Security Law

Agriculture Law

Instrument

Act

Concepts

Definitions & Interpretation

Commencement Provisions

Repeal & Amendment

Reporting & Disclosure Obligations

Enforcement Powers

Recovery of overpayments