Rural and Regional Adjustment Amendment Regulation (No. 5) 2006 (Qld)

Queensland Rural and Regional Adjustment Amendment Regulation (No. 5) 2006 Subordinate Legislation 2006 No. 287 made under the Rural and Regional Adjustment Act 1994 Contents Page 1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 Regulation amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 Amendment of s 7 (Approval of schemes—Act, s 11) . . . . . . . . . 2 4 Amendment of schedule (Approved assistance schemes). . . . . . 2

2 Rural and Regional Adjustment Amendment Regulation (No. 5) 2006 No. 287, 2006 1 Short title This regulation may be cited as the Rural and Regional Adjustment Amendment Regulation (No. 5) 2006 . 2 Regulation amended This regulation amends the RuralandRegionalAdjustmentRegulation 2000. 3 Amendment of s 7 (Approval of schemes—Act, s 11) Section 7— insert— ‘(o) the Business Adjustment—Traveston Crossing Dam - Wyaralong Dam (Business Advice Assistance) Scheme, set out in the schedule, part 15; (p) the Business Adjustment—Traveston Crossing Dam - Wyaralong Dam (Business Restructure Assistance) Scheme, set out in the schedule, part 16; (q) the Business Adjustment—Traveston Crossing Dam - Wyaralong Dam (Business Exit Assistance) Scheme, set out in the schedule, part 17.’. 4 Amendment of schedule (Approved assistance schemes) Schedule— insert— ‘Part 15 Business Adjustment— Traveston Crossing Dam - Wyaralong Dam (Business Advice Assistance) Scheme ‘153 Definitions for pt 15 ‘In this part— announcement day means—

3 Rural and Regional Adjustment Amendment Regulation (No. 5) 2006 No. 287, 2006 (a) for an application for assistance under the scheme relating to the effect of the proposed Traveston Crossing Dam—27 April 2006; or (b) for an application for assistance under the scheme relating to the effect of the proposed Wyaralong Dam—4 July 2006. appropriate service provider means— (a) a person who is a member of, and holds a current practising certificate from— (i) CPA Australia; or (ii) the Institute of Chartered Accountants in Australia; or (iii) the National Institute of Accountants; or (b) a financial services licensee under the Corporations Act. business entity means an individual, partnership, proprietary company or trust that— (a) has an ABN; and (b) is carrying on, or has carried on, a business. eligible business entity means a business entity that is eligible for assistance under the scheme. exit assistance scheme means the scheme set out in part 17. proposed dam means— (a) the proposed dam known as the Traveston Crossing Dam; or (b) the proposed dam known as the Wyaralong Dam. relevant financial advice see section 155(1). restructure assistance scheme means the scheme set out in part 16. scheme means the scheme set out in this part.

4 Rural and Regional Adjustment Amendment Regulation (No. 5) 2006 No. 287, 2006 ‘154 Objective of scheme ‘(1) The objective of the scheme is to assist eligible business entities adversely affected by the proposed dam. ‘(2) However, the scheme is not intended to assist a business entity adversely affected only because of the normal operation of the market in which the business entity carries on business. ‘155 Purpose of assistance ‘(1) The purpose of assistance under the scheme is to reimburse an eligible business entity for the cost of obtaining, from an appropriate service provider, financial advice about the effect on the entity’s business of the proposed dam ( relevant financial advice ). ‘(2) However, assistance under the scheme is not intended to reimburse a business entity for the cost of complying with an obligation under a law of the State or the Commonwealth, including, for example, the cost of preparing an income tax return. ‘156 Nature of assistance ‘The nature of the assistance under the scheme is the provision of a grant to an eligible business entity for reimbursing the cost of obtaining relevant financial advice from an appropriate service provider. ‘157 Amount and payment of assistance ‘(1) The amount of a grant that may be given to a business entity under the scheme is the lesser of the following— (a) the costs the authority considers have been reasonably incurred by the business entity in obtaining relevant financial advice from an appropriate service provider; (b) $2000. ‘(2) The assistance will be given to a business entity under the scheme only if the entity gives the authority a receipt or tax

5 Rural and Regional Adjustment Amendment Regulation (No. 5) 2006 No. 287, 2006 invoice from an appropriate service provider for the relevant financial advice for which the assistance is sought. ‘158 Eligibility criteria ‘(1) For a business entity to be eligible for assistance under the scheme, the authority must be satisfied that— (a) the business entity was carrying on a business immediately before the announcement day; and (b) the entity’s business has been, or is likely to be, adversely affected by the proposed dam. ‘(2) A public company, whether acting alone or with another company, is not eligible for assistance under the scheme. ‘159 Applications ‘An application by a business entity for assistance under the scheme must be made— (a) on the authority’s application form; or (b) with an application under the restructure assistance scheme or exit assistance scheme. ‘Part 16 Business Adjustment— Traveston Crossing Dam - Wyaralong Dam (Business Restructure Assistance) Scheme ‘Division 1 Preliminary ‘160 Definitions for pt 16 ‘In this part—

6 Rural and Regional Adjustment Amendment Regulation (No. 5) 2006 No. 287, 2006 announcement day means— (a) for an application for assistance under the scheme relating to the effect of the proposed Traveston Crossing Dam—27 April 2006; or (b) for an application for assistance under the scheme relating to the effect of the proposed Wyaralong Dam—4 July 2006. business entity means an individual, partnership, proprietary company or trust that— (a) has an ABN; and (b) is carrying on, or has carried on, a business. business recovery plan , for a business entity’s business, means a plan that includes a comprehensive statement of the strategies for restructuring the business to be implemented by the entity to recover from the adverse effects of the proposed dam. eligible business entity means a business entity that is eligible for assistance under the scheme. exit assistance scheme means the scheme set out in part 17. Newstart Allowance means the Newstart Allowance administered by Centrelink. proposed dam means— (a) the proposed dam known as the Traveston Crossing Dam; or (b) the proposed dam known as the Wyaralong Dam. relevant period , for a business entity carrying on a business, means— (a) 3 years, or a longer period considered appropriate by the authority, immediately before the announcement day; or (b) if the entity carried on the business for less than 3 years immediately before the announcement day—the period before the announcement day during which the entity carried on the business. scheme means the scheme set out in this part.

7 Rural and Regional Adjustment Amendment Regulation (No. 5) 2006 No. 287, 2006 viable , in relation to a business during the relevant period, see section 161. ‘161 Meaning of viable during the relevant period ‘(1) A business entity’s business is taken to have been viable during the relevant period if the disposable earnings of the business during the period were greater than the total Newstart Allowance that would have been payable to all individuals the authority considers were operating the business during the period. ‘(2) For subsection (1), the amount of the disposable earnings of the business is worked out using the formula— DE = EB – (I + P + PPE) where— DE means the disposable earnings of the business during the relevant period. EB means whichever of the following the authority considers appropriate— (a) the earnings of the business before interest, tax and reasonable depreciation of business assets, during the relevant period; (b) the earnings of the person operating the business before interest, tax, reasonable depreciation of business assets and the person’s salary from the business, during the relevant period. I means the interest payable for loans for the business during the relevant period. P means the principal payable for loans of the business during the relevant period. PPE means a reasonable provision during the relevant period for the costs of replacing plant and equipment for the business.

8 Rural and Regional Adjustment Amendment Regulation (No. 5) 2006 No. 287, 2006 ‘162 Objective of scheme ‘(1) The objective of the scheme is to assist eligible business entities adversely affected by the proposed dam. ‘(2) However, the scheme is not intended to assist a business entity adversely affected only because of the normal operation of the market in which the business entity carries on business. ‘163 Purpose of assistance ‘The purpose of assistance under the scheme is to assist eligible business entities to— (a) continue to operate during short-term decline in profitability suffered as a result of the proposed dam; or (b) develop and implement business strategies that will positively affect their continuing viability. ‘Division 2 Business restructure assistance ‘164 Nature of assistance ‘(1) The nature of the assistance under the scheme is the provision of a grant to an eligible business entity for restructuring the entity’s business, including, for example, by— (a) providing the business with short-term working capital; or (b) reducing the debt of the business; or (c) paying expenses for relocating the business; or (d) adopting new technologies or processes in the business, including, for example, electronic business; or (e) improving the entity’s business assets; or (f) performing activities that improve the profitability of the business. ‘(2) Also, the authority may consider providing the grant to an eligible business entity for buying capital equipment to restore

9 Rural and Regional Adjustment Amendment Regulation (No. 5) 2006 No. 287, 2006 the viability of the entity’s business to the level of viability immediately before the announcement day. ‘(3) However, the grant will not be provided for— (a) buying equipment of a generic nature, including, for example, a computer, that is used for the routine operation of the entity’s business; or (b) replacing existing equipment. ‘165 Amount and payment of assistance ‘(1) The maximum amount of assistance that may be given to a business entity under the scheme is the lesser of the following— (a) the amount the authority considers is necessary to restore the viability of the entity’s business to the level of viability immediately before the announcement day; (b) the estimated net exit value of the entity’s business decided by the authority. ‘(2) Assistance under the scheme may be paid to a business entity as a lump sum or by instalments. ‘(3) If the assistance is paid by instalments, payments may be made only after the authority receives evidence from the business entity that action required for implementing the strategies under the entity’s business recovery plan has been taken within the periods agreed between the authority and the entity. ‘(4) In this section— estimated net exit value means the value of the entity’s business as a going concern as at the day before the announcement day. ‘166 Eligibility criteria ‘(1) For a business entity to be eligible for assistance under the scheme, the authority must be satisfied that—

10 Rural and Regional Adjustment Amendment Regulation (No. 5) 2006 No. 287, 2006 (a) the business entity was carrying on a business immediately before the announcement day; and (b) either— (i) the business had been viable during the relevant period; or (ii) immediately before the announcement day, the business had the capacity to become viable; and (c) as a direct result of the proposed dam, there has been, or is likely to be, a significant adverse effect on the entity’s business; and (d) the person operating the business, under normal circumstances, generates, or has the potential to generate, the majority of the person’s income from the business; and (e) the assistance given under the scheme will, within a reasonable period, restore the viability of the entity’s business to the lower of— (i) the level of viability during the relevant period; or (ii) a level the authority considers reasonably appropriate; and (f) the business entity has prepared a business recovery plan for the entity’s business. ‘(2) A public company, whether acting alone or with another company, is not eligible for assistance under the scheme. ‘(3) A business entity is not eligible for assistance under the scheme if the entity is eligible for, or has received, assistance under the exit assistance scheme. ‘(4) Also, a business entity is not eligible for assistance under the scheme if the entity is eligible for, or has received, financial assistance from the State or the Commonwealth that the authority considers is equivalent to assistance under the scheme. Example of financial assistance for subsection (4) — financial assistance for restructuring a business given in connection with the acquisition of land under the Acquisition of Land 1967

11 Rural and Regional Adjustment Amendment Regulation (No. 5) 2006 No. 287, 2006 ‘(5) For subsection (1)(c), there has been, or is likely to be, a significant adverse effect on a business entity’s business, if— (a) for a business entity that employs fewer than 6 persons—the authority considers the entity would reasonably require assistance of at least $5000 under the scheme; or (b) for a business entity that employs more than 5 persons— (i) the net profit of the entity’s business has been, or the authority considers is likely to be, reduced by at least 25%; and (ii) the authority considers the entity would reasonably require assistance of at least $10000 under the scheme. ‘(6) Despite subsection (5), if the authority considers a business entity’s circumstances are exceptional, the authority may have regard to a matter that is not mentioned in subsection (5), in deciding whether or not there has been, or is likely to be, a significant adverse effect on the entity’s business. ‘167 Applications ‘An application by a business entity for assistance under the scheme must be— (a) made on the authority’s application form; and (b) accompanied by— (i) the documents mentioned in the application form; and (ii) the business recovery plan for the entity’s business.

12 Rural and Regional Adjustment Amendment Regulation (No. 5) 2006 No. 287, 2006 ‘Part 17 Business Adjustment— Traveston Crossing Dam - Wyaralong Dam (Business Exit Assistance) Scheme ‘Division 1 Preliminary ‘168 Definitions for pt 17 ‘In this part— announcement day means— (a) for an application for assistance under the scheme relating to the effect of the proposed Traveston Crossing Dam—27 April 2006; or (b) for an application for assistance under the scheme relating to the effect of the proposed Wyaralong Dam—4 July 2006. appropriate service provider means— (a) a person who is a member of, and holds a current practising certificate from— (i) CPA Australia; or (ii) the Institute of Chartered Accountants in Australia; or (iii) the National Institute of Accountants; or (b) a financial services licensee under the Corporations Act. business entity means an individual, partnership, proprietary company or trust that— (a) has an ABN; and (b) is carrying on, or has carried on, a business. eligible business entity means a business entity that is eligible for assistance under the scheme. extraordinary expenses see section 172(b).

13 Rural and Regional Adjustment Amendment Regulation (No. 5) 2006 No. 287, 2006 net exit value see section 173(1)(a). Newstart Allowance means the Newstart Allowance administered by Centrelink. proposed dam means— (a) the proposed dam known as the Traveston Crossing Dam; or (b) the proposed dam known as the Wyaralong Dam. relevant period , for a business entity carrying on a business, means— (a) 3 years, or a longer period considered appropriate by the authority, immediately before the announcement day; or (b) if the entity carried on the business for less than 3 years immediately before the announcement day—the period before the announcement day during which the entity carried on the business. restructure assistance scheme means the scheme set out in part 16. scheme means the scheme set out in this part. viable , in relation to a business during the relevant period, see section 169. ‘169 Meaning of viable during the relevant period ‘(1) A business entity’s business is taken to have been viable during the relevant period if the disposable earnings of the business during the period were greater than the total Newstart Allowance that would have been payable to all individuals the authority considers were operating the business during the period. ‘(2) For subsection (1), the amount of the disposable earnings of the business is worked out using the formula— DE = EB – (I + P + PPE) where— DE means the disposable earnings of the business during the relevant period.

14 Rural and Regional Adjustment Amendment Regulation (No. 5) 2006 No. 287, 2006 EB means whichever of the following the authority considers appropriate— (a) the earnings of the business before interest, tax and reasonable depreciation of business assets, during the relevant period; (b) the earnings of the person operating the business before interest, tax, reasonable depreciation of business assets and the person’s salary from the business, during the relevant period. I means the interest payable for loans for the business during the relevant period. P means the principal payable for loans of the business during the relevant period. PPE means a reasonable provision during the relevant period for the costs of replacing plant and equipment for the business. ‘170 Objective of scheme ‘(1) The objective of the scheme is to assist eligible business entities adversely affected by the proposed dam. ‘(2) However, the scheme is not intended to assist a business entity adversely affected only because of the normal operation of the market in which the business entity carries on business. ‘171 Purpose of assistance ‘The purpose of assistance under the scheme is to assist an eligible business entity to exit its business, if exiting the business is the only appropriate course of action as a result of the effect of the proposed dam on the viability of the business.

15 Rural and Regional Adjustment Amendment Regulation (No. 5) 2006 No. 287, 2006 ‘Division 2 Business exit assistance ‘172 Nature of assistance ‘The nature of the assistance that may be given to a business entity under the scheme is— (a) a single payment to the entity of the net exit value of the business; and (b) reimbursement of any of the following expenses ( extraordinary expenses ) the authority considers have been reasonably incurred by the business entity— (i) the costs of an appropriate service provider in providing information required by the authority additional to the entity’s application for assistance under the scheme; (ii) payments made by the business entity to an employee for redundancy or retrenchment in accordance with the appropriate award, industrial agreement or terms of employment; (iii) payments made by the business entity to an employee instead of notice; (iv) costs of rehabilitating a site where the business entity carried on business; (v) costs incurred in selling or auctioning business assets, including, for example, an agent’s commission or advertising expenses. ‘173 Amount of assistance ‘(1) The amount of assistance that may be given to a business entity under the scheme is— (a) the value of the entity’s business as a going concern as at the day before the announcement day (the net exit value ), as decided by the authority; and (b) if the entity’s application for assistance includes a claim for reimbursement of an extraordinary expense—the

16 Rural and Regional Adjustment Amendment Regulation (No. 5) 2006 No. 287, 2006 amount of the expense the authority considers was reasonably incurred by the business entity. ‘(2) However, in deciding the net exit value of a business, the authority must have regard to an independent valuation of the business by an appropriate valuer. ‘(3) In this section— appropriate valuer means a valuer chosen by the authority from a panel of registered valuers. ‘174 Eligibility criteria ‘(1) For a business entity to be eligible for assistance under the scheme, the authority must be satisfied that— (a) the business entity was carrying on a business immediately before the announcement day; and (b) either— (i) the business had been viable during the relevant period; or (ii) immediately before the announcement day, the business had the capacity to become viable; and (c) the person operating the business, under normal circumstances, generates, or has the potential to generate, the majority of the person’s income from the business; and (d) the business entity has considered seeking assistance under the restructure assistance scheme and has fully explained the reasons restructure assistance is not considered appropriate for the entity; and (e) as a direct result of the proposed dam— (i) there has been, or is likely to be, a significant adverse effect on the entity’s business; and (ii) the viability of the entity’s business can not be, or will not be able to be, restored to a level the authority considers reasonably appropriate; and

17 Rural and Regional Adjustment Amendment Regulation (No. 5) 2006 No. 287, 2006 (ii) exiting the business is the only appropriate course of action; and (f) if the business entity’s application for assistance includes a claim for reimbursement of an extraordinary expense, the expense— (i) is a legitimate cost of exiting the business; and (ii) has been incurred as a direct result of the effect on the entity’s business of the proposed dam; and (g) if the business entity’s application for assistance includes a claim for reimbursement for a payment to an employee instead of notice— (i) the payment was made in exceptional circumstances; and (ii) the entity could not reasonably have required the employee to work for the required period of notice. ‘(2) A public company, whether acting alone or with another company, is not eligible for assistance under the scheme. ‘(3) A business entity is not eligible for assistance under the scheme if the entity is eligible for, or has received, assistance under the restructure assistance scheme. ‘(4) Also, a business entity is not eligible for assistance under the scheme if the entity is eligible for, or has received, financial assistance from the State or the Commonwealth that the authority considers is equivalent to assistance under the scheme. Example of financial assistance for subsection (4) — financial assistance for exiting a business given in connection with the acquisition of land under the Acquisition of Land 1967 ‘175 Terms ‘ (1) If the authority approves assistance for a business entity and the entity wishes to accept the net exit value decided by the authority for the entity’s business, the entity must sign a contract for exiting the business within the prescribed period.

18 Rural and Regional Adjustment Amendment Regulation (No. 5) 2006 No. 287, 2006 ‘(2) If the business entity does not sign a contract under subsection (1) within the prescribed period, the entity is taken to have withdrawn the entity’s application for assistance. ‘(3) A contract under subsection (1) may include either of the following conditions— (a) a requirement that the business entity enter into a restraint of trade arrangement for up to 3 years; (b) a requirement that the business entity not disclose information relating to payments received under the contract. ‘(4) Payment of the net exit value of a business entity’s business must be made in accordance with contractual arrangements between the business entity and the State. ‘(5) In this section— prescribed period means— (a) 2 months after the State gives a written offer to the business entity to enter into a contract under subsection (1); or (b) if the business entity and the State have, within the 2 months, agreed to a longer period—the longer period. ‘176 Applications ‘An application by a business entity for assistance under the scheme must be— (a) made on the authority’s application form; and (b) accompanied by the documents mentioned in the application form.’.

19 Rural and Regional Adjustment Amendment Regulation (No. 5) 2006 No. 287, 2006 ENDNOTES 1 Made by the Governor in Council on 23 November 2006. 2 Notified in the gazette on 24 November 2006. 3 Laid before the Legislative Assembly on . . . 4 The administering agency is the Department of Primary Industries and Fisheries. © State of Queensland 2006