Rural and Regional Adjustment Amendment Regulation (No.10) 2005 (Qld)

Queensland Rural and Regional Adjustment Amendment Regulation (No. 10) 2005 Subordinate Legislation 2005 No. 225 made under the Rural and Regional Adjustment Act 1994 Contents Page 1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 Commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 Regulation amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 4 Replacement of s 2 (Definitions) . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 Notes in text . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 5 Amendment of s 3 (DSAP scheme) . . . . . . . . . . . . . . . . . . . . . . . 2 6 Amendment of s 4 (Rural irrigation water users) . . . . . . . . . . . . . 2 7 Replacement of s 5 (QHC loans for residential services). . . . . . . 3 5 State loans for residential services. . . . . . . . . . . . . . . 3 8 Amendment of s 6 (Adjustment package) . . . . . . . . . . . . . . . . . . 4 9 Amendment of s 7 (Approval of schemes—Act, s 11) . . . . . . . . . 5 10 Omission of pt 4 (Miscellaneous) . . . . . . . . . . . . . . . . . . . . . . . . . 6 11 Amendment of schedule (Approved assistance schemes). . . . . . 6

s1 2 s6 Rural and Regional Adjustment Amendment Regulation (No. 10) 2005 No. 225, 2005 1 Short title This regulation may be cited as the Rural and Regional Adjustment Amendment Regulation (No. 10) 2005 . 2 Commencement This regulation commences on 17 September 2005. 3 Regulation amended This regulation amends the RuralandRegionalAdjustmentRegulation 2000. 4 Replacement of s 2 (Definitions) Section 2— omit, insert — ‘2 Notes in text ‘A note in the text of this regulation is part of the regulation.’. 5 Amendment of s 3 (DSAP scheme) Section 3— insert — ‘(2) In this section— DSAP scheme see the Dairy Produce Act 1986 (Cwlth), schedule 2, clause 10. entity see the Dairy Produce Act 1986 (Cwlth), schedule 2, clause 5. farm business assessment means a farm business assessment mentioned in the Dairy Produce Act 1986 (Cwlth), schedule 2, clause 17.’. 6 Amendment of s 4 (Rural irrigation water users) Section 4—

s7 3 s7 Rural and Regional Adjustment Amendment Regulation (No. 10) 2005 No. 225, 2005 insert — ‘(2) In this section— rural irrigation water user means a water entitlement holder charged, under the Rural Water Pricing Direction Notice (No. 1) 2000, 1 for the supply of rural irrigation water in the following water supply projects mentioned in the notice — (a) Burdekin Channel; (b) Burdekin River; (c) Burdekin (Other); (d) Mareeba Channel; (e) Mareeba River; (f) Proserpine. SunWater means the entity continued in existence under the GovernmentOwnedCorporationsRegulation2004 , section 34. water entitlement holder means a holder of a water entitlement under the Water Act 2000 .’. 7 Replacement of s 5 (QHC loans for residential services) Section 5— omit, insert — ‘5 State loans for residential services ‘(1) The authority has the following functions in relation to the making of residential service loans by the State under the Housing Act 2003 — (a) to prepare criteria for assessing the financial viability of residential services for which loans are required, the financial risk to the State and the ability of applicants to repay the loans (the assessment criteria ); (b) to assess applications for loans using the assessment criteria; 1 This notice was published in the gazette on 6 October 2000 at page 429.

s8 4 s8 Rural and Regional Adjustment Amendment Regulation (No. 10) 2005 No. 225, 2005 (c) to notify the State about the outcome of each assessment including whether the authority recommends that the State make the loan; (d) if the authority recommends that the State make a loan—to recommend to the State the repayment terms and other matters required to assist the applicant to be able to repay the loan; (e) to develop documentation for loans including application forms, loan agreements and security documents; (f) to undertake annual reviews of the financial position of persons to whom loans have been made; (g) to notify the State about the outcomes of the reviews; (h) at the request of the State, to provide advice to assist the State to manage the loans; (i) to perform functions incidental to a function under another paragraph of this section. ‘(2) In this section— residential service see the ResidentialServices(Accreditation) Act 2002 , section 4. residential service loan means a loan to help meet the costs of building and related work carried out for the purpose of conducting a residential service under the Residential Services(Accreditation) Act 2002 .’. 8 Amendment of s 6 (Adjustment package) Section 6— insert — ‘(2) In this section— adjustment package means the scheme known as the ‘Great Barrier Reef Marine Park Structural Adjustment Package 2004’.

s9 5 s9 Rural and Regional Adjustment Amendment Regulation (No. 10) 2005 No. 225, 2005 affected person — (a) means a person who may be significantly adversely affected by the rezoning of the Great Barrier Reef Marine Park under the Great Barrier Reef Zoning Plan 2003 (Cwlth); and (b) includes— (i) a person who holds a commercial fisher licence under the Fisheries Act 1994 ; and (ii) a person who carries on a business relating to a fishery or fisheries within the meaning of the Fisheries Act 1994 ; 2 and (iii) an employee of a person mentioned in subparagraph (i) or (ii). component , of the adjustment package, means any of the following, within the meaning of the package— (a) business advice assistance; (b) business exit assistance; (c) business restructuring assistance; (d) employee assistance. DEH means the Commonwealth Department of the Environment and Heritage.’. 9 Amendment of s 7 (Approval of schemes—Act, s 11) Section 7— insert — ‘(g) the Small Business Emergency Assistance Scheme set out in the schedule, part 7; (h) the Exceptional Circumstances Scheme set out in the schedule, part 8.’. 2 See the Fisheries Act 1994 , section 7 (Meaning of fishery ).

s 10 6 s 11 Rural and Regional Adjustment Amendment Regulation (No. 10) 2005 No. 225, 2005 10 Omission of pt 4 (Miscellaneous) Part 4— omit . 11 Amendment of schedule (Approved assistance schemes) Schedule— insert — ‘Part 7 Small Business Emergency Assistance Scheme ‘82 Definitions for pt 7 ‘In this part— Commonwealth Act means the Rural Adjustment Act 1992 (Cwlth). EC declaration means a declaration under the Commonwealth Act of an area as an area undergoing exceptional circumstances. 3 ‘83 Objective of scheme ‘(1) The objective of the scheme is to assist owners of locally owned small businesses to meet operating and other essential costs if the business enterprise is— (a) located in, adjacent to or dependent on, an EC area; or (b) affected by another significant event decided by the Minister. ‘(2) In this section— EC area means an area declared under an EC declaration. 3 At the commencement of section 82, information about the declaration and declared area was available on the Australian Government Department of Agriculture, Fisheries and Forestry website at < s 11 7 s 11 Rural and Regional Adjustment Amendment Regulation (No. 10) 2005 No. 225, 2005 small business means a business employing not more than 100 employees. ‘84 Nature of assistance ‘The nature of the assistance that may be given under the scheme is an interest subsidy for new or existing commercial loans. ‘85 Maximum subsidy amount ‘(1) The maximum interest subsidy that may be given for a loan is $10000 a year for 2 years. ‘(2) The interest subsidy will be not more than 50% of the interest payable on new or existing loans for the period of the assistance, if the lender’s rate is competitive for the loan being subsidised. ‘(3) Payment of the interest subsidy will be made in advance to the commercial lender for not more than 1 year and then be subject to a second year review. ‘86 Eligibility criteria ‘For an applicant to be eligible to receive assistance— (a) the applicant must— (i) own (whether as sole owner, in partnership or as a private company) and operate a small business; and (ii) demonstrate that the applicant has owned and operated the business for at least 2 years; and (iii) ordinarily obtain the applicant’s major source of income from the business enterprise; and (iv) demonstrate a need for the assistance; and (v) provide evidence that the need for the assistance is related to the effect of the exceptional circumstances or other significant event decided under section 83(1)(b); and

s 11 8 s 11 Rural and Regional Adjustment Amendment Regulation (No. 10) 2005 No. 225, 2005 (b) the authority must be satisfied that the business enterprise has sound prospects of commercial viability given normal conditions. ‘87 Applications ‘(1) An application for assistance must be— (a) made on the application form approved by the authority; 4 and (b) accompanied by the documents stated on the application form; and (c) lodged with the authority. ‘(2) If drought is the main cause of the need for assistance— (a) the application must be made not later than 6 months after the EC declaration is revoked under the Commonwealth Act; and (b) if the application is made within 6 months after the revocation, assistance may be given for up to 1 year. ‘88 Deciding applications ‘The authority must consider, and decide to approve or refuse to approve, each application for assistance. ‘Part 8 Exceptional Circumstances Scheme ‘89 Definitions for pt 8 ‘In this part— 4 At the commencement of section 87, a copy of an application form was available on the authority’s website at < s 11 9 s 11 Rural and Regional Adjustment Amendment Regulation (No. 10) 2005 No. 225, 2005 Commonwealth Act means the Rural Adjustment Act 1992 (Cwlth). EC area means an area declared under an EC declaration. 5 EC declaration means a declaration under the Commonwealth Act of an area as an area undergoing exceptional circumstances. EC year means a 1 year period for which an EC declaration applies and for which assistance may be given under a rural adjustment scheme. exceptional circumstances means circumstances that have detrimentally affected a primary producer’s income, leading to financial difficulty. Newstart Allowance means the Newstart Allowance administered by Centrelink. 6 primary production enterprise means a business carried on in a primary production industry, including the agricultural, apicultural, aquacultural, grazing and horticultural industries, other than the retail amenity horticultural industry. Example of a business carried on in a retail amenity horticultural industry — retail nursery rural adjustment scheme means a Rural Adjustment Scheme within the meaning of the Commonwealth Act. ‘90 Objectives of scheme ‘(1) The objectives of the scheme are— (a) to assist affected primary producers if, had exceptional circumstances not happened, the primary production enterprises carried on by the producers would have long term prospects of profitability and sustainability; and 5 At the commencement of section 89, information about the declaration and declared area was available on the Australian Government Department of Agriculture, Fisheries and Forestry website at < 6 At the commencement of section 89, information about the allowance was stated on Centrelink’s website at < s 11 10 s 11 Rural and Regional Adjustment Amendment Regulation (No. 10) 2005 No. 225, 2005 (b) to assist affected primary producers to recover from the effects of exceptional circumstances. ‘(2) In this section— affected primary producer means a primary producer who is carrying on a primary production enterprise in an EC area. ‘91 Purpose of assistance ‘The purpose of assistance under this scheme is to facilitate 1 or more of the following strategies— (a) improvements in productivity, including for recovery purposes; (b) the provision of carry-on finance; (c) debt restructuring. ‘92 Nature of assistance ‘The nature of the assistance that may be given is an interest subsidy for new or existing loans for primary production enterprises. ‘93 Level of assistance ‘(1) The level of assistance to be given to a primary producer must be decided by the extent of assistance needed for the strategies mentioned in section 91. ‘(2) The interest subsidy given to a primary producer in the first EC year must be not more than 50% of the eligible interest. ‘(3) The interest subsidy given to a primary producer in the second or a subsequent EC year must be not more than 80% of the eligible interest. ‘(4) If a primary producer has received an interest subsidy of not more than 50% of the eligible interest for the second, or a subsequent, EC year that includes 30 May 2005, the producer may make a further application for not more than 30% of the eligible interest for that year.

s 11 11 s 11 Rural and Regional Adjustment Amendment Regulation (No. 10) 2005 No. 225, 2005 ‘(5) The level of assistance to be given to a primary producer must be decided from— (a) the budgets from the producer’s enterprise that allow for financial demands on the enterprise appropriate to the exceptional circumstances; and (b) an assessment of the living expenses for the household at the relevant Newstart Allowance rate. ‘(6) In deciding the amount of subsidy to be given to a primary producer, the authority must take into account the level of assistance the producer has already received under a rural adjustment scheme. ‘(7) The amount of interest subsidy payable to a primary producer must not result in the producer receiving, under a rural adjustment scheme, more than— (a) $100000 in any 1 year period; or (b) a cumulative total of $300000 over the previous 5 year period. ‘(8) If a primary producer has purchased additional farming property during the exceptional circumstances, the authority, in deciding the level of loans to be supported for an initial interest subsidy, must deduct the full cost of the purchase from the balance of the existing loans. ‘(9) Any loans or associated costs already subsidised under any other Commonwealth scheme must not be considered for support. ‘(10) In this section— eligible interest means the interest payable on, and associated costs of, the loans for which an interest subsidy is sought. ‘94 Period of assistance ‘(1) The period for which an interest subsidy is given is to be decided in each case by the authority. ‘(2) The period will be not more than 1 year for each application.

s 11 12 s 11 Rural and Regional Adjustment Amendment Regulation (No. 10) 2005 No. 225, 2005 ‘(3) Subject to section 93(4), a maximum of 2 tranches of interest subsidy (1 in the first EC year and 1 in the second EC year) may be given. ‘(4) However, if under the EC declaration, assistance may be given for more than 2 years, an interest subsidy may be applied for and given for each additional year. ‘95 Eligibility criteria ‘(1) For an applicant to be eligible to receive assistance, the applicant must satisfy the criteria stated in subsection (2) and the authority must be satisfied of the matters stated in subsection (3). ‘(2) The applicant must— (a) be a primary producer to whom an EC declaration applies; and (b) own or occupy land, and carry on a primary production enterprise on the land, in the EC area or the buffer zone declared under the EC declaration; and (c) demonstrate that, under normal circumstances, the applicant occupies the land and— (i) spends at least 75% of the applicant’s labour on the enterprise; and (ii) obtains at least 50% of the applicant’s income from the enterprise; and (d) demonstrate that the applicant has been a primary producer for at least 2 years; and (e) demonstrate that the enterprise is in financial difficulty because of the exceptional circumstances; and (f) demonstrate that the applicant, under normal circumstances, satisfies any other eligibility

s 11 13 s 11 Rural and Regional Adjustment Amendment Regulation (No. 10) 2005 No. 225, 2005 requirements imposed by the Commonwealth under the rural adjustment scheme. 7 ‘(3) The authority must be satisfied that— (a) the primary production enterprise is in financial difficulty because of the exceptional circumstances; and (b) the assistance is necessary to achieve 1 or more of the strategies mentioned in section 91; and (c) without the assistance, the enterprise would not have the capacity to achieve or maintain commercial viability; and (d) the applicant has— (i) on commercial terms, disposed of— (A) all non-essential farm assets; and (B) off-farm assets, so that the net value of off-farm assets is not more than double the Newstart Allowance assets test for homeowners (partnered); and (ii) applied the proceeds to the enterprise (unless this would result in extreme hardship to the applicant); and Note — Investments in bona fide insurance and superannuation funds are exempt from the off-farm assets test mentioned in subparagraph (i)(B) . (e) each loan for which the interest subsidy is sought is given— (i) on commercial terms at arm’s length; and (ii) at an interest rate that is competitive with the rate generally applicable to loans of the same type. 7 At the commencement of section 95, information about any requirements was available on the Australian Government Department of Agriculture, Fisheries and Forestry website at < The information may also be obtained from the authority at Level 9, 307 Queen Street, Brisbane, or the authority’s website at <qraa.qld.gov.au>.

s 11 14 s 11 Rural and Regional Adjustment Amendment Regulation (No. 10) 2005 No. 225, 2005 ‘(4) In deciding whether the primary production enterprise is in financial difficulty, the authority— (a) must consider each of the following— (i) the total amount of interest payable each year; (ii) the estimated surplus over the medium term; (iii) the applicant’s equity in the enterprise in relation to the amount of current and future indebtedness, together with both farm and off-farm assets and income; and (b) must disregard the applicant’s ability to purchase additional farming property during the exceptional circumstances. ‘(5) In assessing the likelihood of the primary production enterprise being profitable in the long term, the authority must take account of each of the following— (a) whether the enterprise has operated without assistance under a rural adjustment scheme in— (i) at least 2 of the previous 5 years; or (ii) another period decided by the Commonwealth under the Commonwealth Act; (b) the expected future capacity of the enterprise to operate profitably (without assistance under the rural adjustment scheme) as measured by its ability to meet, from estimated surpluses, its future financial commitments for each of the following— (i) its operating costs; (ii) living costs of the farm family; (iii) servicing of the enterprise debts; (iv) future capital requirements for plant and improvements; (v) investment requirements to return the enterprise to profitability; (c) the long-term economic trends impacting on the enterprise;

s 11 15 s 11 Rural and Regional Adjustment Amendment Regulation (No. 10) 2005 No. 225, 2005 (d) the applicant’s demonstrated technical, financial and business management performance; (e) the provision of financial support for the enterprise by lenders during and after the exceptional circumstances. ‘(6) A primary producer not receiving assistance in a particular EC year may be eligible for assistance in a subsequent EC year. ‘(7) If the EC declaration for an area ended before 30 May 2005, a primary producer in the area is not eligible for— (a) an additional interest subsidy mentioned in section 93(4); or (b) the benefit of the change to the Newstart Allowance assets test for homeowners (partnered) allowing a primary producer’s net value of off-farm assets to be not more than double the assets test. ‘96 Applications ‘(1) An application for assistance must be— (a) made on the application form approved by the authority; 8 and (b) accompanied by the documents stated on the application form; and (c) lodged with the authority. ‘(2) Applications must be made not later than 28 days after the EC year for which the assistance is sought ends. ‘(3) A primary producer can not apply for a further interest subsidy until 9 months after the day the producer last makes a successful interest subsidy application. ‘(4) Subsection (3) does not apply to an application mentioned in section 93(4). 8 At the commencement of section 96, a copy of the application form was available on the authority’s website at < s 11 16 s 11 Rural and Regional Adjustment Amendment Regulation (No. 10) 2005 No. 225, 2005 ‘97 Deciding applications ‘The authority must consider, and decide to approve or refuse to approve, each application for assistance. ‘98 Terms and conditions ‘(1) The giving of assistance in a particular EC year does not guarantee assistance in a subsequent EC year. ‘(2) Payment of an interest subsidy for a loan will be made— (a) to the lender on behalf of the primary producer receiving the assistance; or (b) direct to the primary producer, after the authority has secured agreement from the producer as to the use of the assistance.’. ENDNOTES 1 Made by the Governor in Council on 15 September 2005. 2 Notified in the gazette on 16 September 2005. 3 Laid before the Legislative Assembly on . . . 4 The administering agency is the Department of Primary Industries and Fisheries. © State of Queensland 2005