Rural and Regional Adjustment Amendment Regulation (No.6) 2005 (Qld)

Queensland Rural and Regional Adjustment Amendment Regulation (No. 6) 2005 Subordinate Legislation 2005 No. 133 made under the Rural and Regional Adjustment Act 1994 Contents Page 1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 Regulation amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 Insertion of new s 8B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 8B Approval of Primary Industry Productivity Enhancement Scheme . . . . . . . . . . . . . . . . . . . . . . . . 2 4 Amendment of schedule (Approved assistance schemes). . . . . . 2

s1 2 s4 Rural and Regional Adjustment Amendment Regulation (No. 6) 2005 No. 133, 2005 1 Short title This regulation may be cited as the Rural and Regional Adjustment Amendment Regulation (No. 6) 2005 . 2 Regulation amended This regulation amends the RuralandRegionalAdjustmentRegulation 2000. 3 Insertion of new s 8B Part 3, after section 8A— insert— ‘8B Approval of Primary Industry Productivity Enhancement Scheme ‘The Primary Industry Productivity Enhancement Scheme set out in the schedule, part 3, is approved.’. 4 Amendment of schedule (Approved assistance schemes) (1) Schedule, before part 1 heading, ‘section 8’— omit, insert— ‘ sections 8 to 8B ’. (2) Schedule, after section 26— insert— ‘Part 3 Primary Industry Productivity Enhancement Scheme ‘Division 1 Preliminary ‘27 Objectives of scheme ‘The objectives of the scheme are— (a) to strengthen the economy of Queensland regions; and

s4 3 s4 Rural and Regional Adjustment Amendment Regulation (No. 6) 2005 No. 133, 2005 (b) to increase the capability of primary producers to improve their sustainable production, to protect the environment and to achieve self-reliance. ‘28 Application of scheme ‘(1) The scheme consists of the following programs— (a) the first start program; (b) the development program; (c) the resource management program. ‘(2) An applicant may apply for assistance under more than 1 program. ‘29 Definitions for pt 3 ‘In this part— approved application form , for a program under the scheme, means the application form approved by the authority for the program. authorised officer means an individual stated on the approved application form for the resource management program to be an authorised officer under the program. certified activities see section 47(1)(d). commercial wild catch-fishing means the fishing and harvesting for commercial purposes of marine and freshwater species from a wild population that are caught in their natural environment. development program means the part of the scheme set out in divisions 2 and 4. eligible activities means the eligible activities decided under section 31. first start program means the part of the scheme set out in divisions 2 and 3. management plan , of an applicant applying for assistance under the scheme, means a plan that—

s4 4 s4 Rural and Regional Adjustment Amendment Regulation (No. 6) 2005 No. 133, 2005 (a) includes details of the activity for which the applicant is applying for assistance; and (b) adopts a whole of business approach to planning, and include components dealing with matters relevant to the activity including natural resources management, productivity, marketing and financial and risk management; and (c) if the assistance is for on-farm activities—identifies and states the area of land affected by the application; and (d) must comply with the guidelines for management plans under the scheme that are issued by the authority. 1 primary producer means a person who spends the majority of the person’s labour on, and derives the majority of the person’s income from a primary production enterprise. primary production enterprise means a business carried on in a primary production industry, including the agricultural, apicultural, aquacultural, commercial wild catch-fishing, forestry, grazing and horticultural industries. resource management program means the part of the scheme set out in divisions 2 and 5. sharefisher means a person who— (a) works in a business in the commercial wild catch-fishing industry; and (b) shares the proceeds of the business with the owner of the business. 1 A copy of the guidelines for management plans under the scheme may be obtained from the authority.

s4 5 s4 Rural and Regional Adjustment Amendment Regulation (No. 6) 2005 No. 133, 2005 ‘Division 2 General provisions for scheme ‘30 Nature of assistance ‘The nature of the assistance that may be given under the scheme is loans at concessional rates of interest to applicants who— (a) are carrying out eligible activities; and (b) under section 39, 43 or 47, are eligible to receive assistance under the scheme. ‘31 Eligible activities ‘(1) The chief executive must— (a) decide the activities that are eligible activities for each program under the scheme; and (b) notify the authority about the decision made under paragraph (a). ‘(2) When deciding whether an activity is an eligible activity for a program, the chief executive must consult with relevant public sector entities. ‘32 Interest rate ‘(1) The initial interest rate under the scheme for a loan to an applicant will be worked out when the loan is approved by the authority. ‘(2) The initial interest rate for the loan— (a) depends on whether the interest rate is fixed for 1, 3 or 5 years, as decided by the authority; and (b) is worked out by the authority based on the base lending rate for the relevant period. ‘(3) The authority may, during the term of the loan, increase the interest rate from the interest rate mentioned in subsection (2) to a commercial rate.

s4 6 s4 Rural and Regional Adjustment Amendment Regulation (No. 6) 2005 No. 133, 2005 ‘(4) The authority may decide the extent to which the interest rate for the loan will increase under subsection (3)— (a) in an annual review of the loan; and (b) based on the improved financial capacity of the applicant. ‘(5) In this section— base lending rate , means the rate decided by the authority for each 6 month period in each year that is the 1, 3 or 5 year lending rate, as appropriate, of the Queensland Treasury Corporation, plus 1%. ‘33 Terms of repayment ‘(1) Repayment of principal and interest on a loan granted to an applicant under the scheme will be— (a) initially calculated using a period of up to the maximum term of the loan; and (b) tailored to the applicant’s individual requirements based on the applicant’s income patterns. ‘(2) An interest only period of not more than 2 years may be available. ‘(3) The loan will have an initial interest rate that is fixed under section 32. ‘34 Security ‘(1) If an applicant is granted a loan under the scheme, the applicant must give security for the loan. ‘(2) The security required is— (a) a mortgage of land or other assets, commensurate with the amount of the loan; or (b) any other security the authority considers necessary, including, for example, a crop lien or stock mortgage.

s4 7 s4 Rural and Regional Adjustment Amendment Regulation (No. 6) 2005 No. 133, 2005 ‘35 Applications ‘An application for assistance under the scheme must be— (a) made on the approved application form for the program under which the applicant is applying; and (b) accompanied by the documents stated on the approved application form; and (c) lodged with the authority. ‘36 Deciding applications ‘The authority must consider and decide to approve or refuse to approve each application for assistance. ‘Division 3 First start program ‘37 Purpose of assistance under the first start program ‘(1) The first start program is designed to provide finance to an applicant in the first years of establishment of the applicant’s primary production enterprise. ‘(2) The purpose of assistance under the first start program is to enable an applicant— (a) to acquire, including from the applicant’s parents, or other family member, a viable primary production enterprise; or (b) to acquire a primary production enterprise on a staged basis, as part of a longer term plan for the applicant to own a viable primary production enterprise; or (c) to enter into a leasing, sharefarming or sharefishing arrangement that may lead to the applicant owning a viable primary production enterprise; or (d) to upgrade the applicant’s existing non-viable primary production enterprise that has not generated the majority of the applicant’s income to one of an economically sustainable size.

s4 8 s4 Rural and Regional Adjustment Amendment Regulation (No. 6) 2005 No. 133, 2005 ‘38 Maximum loan amounts ‘The maximum amount of a loan, or the total outstanding loan balance, under the first start program is $500000. ‘39 Eligibility criteria ‘(1) For an applicant to be eligible to receive assistance under the first start program, the applicant must— (a) have resided in Queensland for at least 2 years; and (b) not own, or have disposed of, a viable primary production enterprise; and (c) provide evidence of financial need for the assistance; and (d) if the loan is to buy the applicant’s parents’ or other family member’s assets—be able to demonstrate— (i) the parents or family member is not in a financial position to completely effect a transfer of the assets; and (ii) the purchase is not merely a refinance arrangement; and (e) demonstrate adequate experience or other qualifications to give the applicant a reasonable prospect of success in the particular industry the applicant wishes to enter; and (f) be able to demonstrate— (i) for buying a primary production enterprise—the applicant will have 50% equity in the enterprise; or (ii) for a leasing, sharefarming or sharefishing arrangement—the applicant will pay 50% of the set up costs of the enterprise; and (g) demonstrate adequate funding for carry-on purposes; and (h) demonstrate sound prospects for commercial viability in the long term development of the primary production enterprise, in accordance with the planned progression,

s4 9 s4 Rural and Regional Adjustment Amendment Regulation (No. 6) 2005 No. 133, 2005 and the capacity to service proposed debt from the enterprise and other forms of income; and (i) trade in the applicant’s own right; and (j) give the authority a management plan. ‘(2) However, for subsection (1)(f), the authority may, in relevant circumstances, vary the amount of equity in the enterprise that the applicant is required to demonstrate. Examples of relevant circumstances — 1 a joint lending proposal with a commercial lender 2 applicant has stable off-farm or other income from land or other assets ‘(3) The authority may require the applicant’s management plan to show the stages of a planned progression towards a viable first enterprise. ‘40 Maximum term of loan ‘The maximum term of a loan is 20 years. ‘Division 4 Development program ‘41 Purpose of assistance under the development program ‘The purpose of assistance under the development program is to enable an applicant to increase the productivity and long term viability of the applicant’s primary production business, in the context of sustainable development, by— (a) encouraging enterprise build-up, rationalisation, expansion or diversification to enhance viability, including value-adding and investment in supply chain activities; and Example of supply chain activities — facilities for processing primary produce (b) improving water quality and supply for domestic, stock or irrigation purposes; and

s 4 10 s 4 Rural and Regional Adjustment Amendment Regulation (No. 6) 2005 No. 133, 2005 (c) supporting risk management strategies, including strategies to prepare for climatic risk. Example of climatic risk — drought, frost, hail ‘42 Maximum loan amounts and outstanding loan balances ‘The maximum amount of a loan, or the total outstanding loan balance, under the development program is— (a) if the loan is to buy stock or upgrade plant or machinery—$100000; or (b) otherwise—$500000. ‘43 Eligibility criteria ‘For an applicant to be eligible to receive assistance under the development program, the applicant must— (a) demonstrate sound prospects for commercial viability, and the ability to service the loan, in the long-term; and (b) provide evidence of a financial need for the assistance; and (c) demonstrate that the amount of non-enterprise or liquid assets owned by the applicant is not more than the amount needed for prudent risk management; and (d) if the assistance is sought to rationalise a partnership—demonstrate that the proposal for the rationalisation is not merely a refinance arrangement; and (e) if the assistance is sought to upgrade plant and machinery—demonstrate that the plant and machinery will be used predominantly for the enterprise; and (f) demonstrate that the applicant has worked full-time for at least 2 years in the applicant’s primary production business— (i) as a leaseholder, owner, sharefarmer or sharefisher; or

s 4 11 s 4 Rural and Regional Adjustment Amendment Regulation (No. 6) 2005 No. 133, 2005 (ii) as a member or employee of a company or partnership; and (g) ordinarily obtain the applicant’s major source of income from the enterprise or value-adding activities related to the enterprise; and (h) give the authority a management plan. ‘44 Maximum term of loan ‘(1) The maximum term of a loan is— (a) for buying stock or upgrading plant or machinery—7 years; or (b) otherwise—20 years. ‘(2) However, the authority may, in relevant circumstances, decide that the maximum term of a loan for purchasing stock can vary. Example of relevant circumstances — a contract to purchase land and the plant, machinery and stock on the land ‘Division 5 Resource management program ‘45 Purpose of assistance under the resource management program ‘The purpose of assistance under the resource management program is to enable an applicant to achieve sustainable development through the adoption of appropriate resource management practices, the prevention of degradation or the rehabilitation of degraded areas. ‘46 Maximum loan amounts and outstanding loan balances ‘The maximum amount of a loan, or the total outstanding loan balance, under the resource management program is $300000.

s 4 12 s 4 Rural and Regional Adjustment Amendment Regulation (No. 6) 2005 No. 133, 2005 ‘47 Eligibility criteria ‘(1) For an applicant to be eligible to receive assistance under the resource management program for the applicant’s primary production enterprise, the applicant must— (a) demonstrate sound prospects for commercial viability, and the ability to service the loan, in the long-term; and (b) demonstrate that the applicant is working full-time in the primary production enterprise— (i) as a leaseholder, owner, sharefarmer or sharefisher; or (ii) as a member or employee of a company or partnership; and (c) ordinarily obtain the applicant’s major source of income from the primary production enterprise; and (d) for on-farm activities—obtain certification by an authorised officer that the activities stated on the applicant’s approved application form for the resource management program (the certified activities ) are eligible activities; and (e) give the authority a management plan. ‘(2) Assistance under the resource management program is not means tested. ‘48 Maximum term of loan ‘The maximum term of a loan is 20 years. ‘49 Payment ‘(1) This section applies to the authority making payments to a primary producer receiving assistance under the resource management program. ‘(2) Payment may be made to the primary producer only if— (a) the primary producer gives the authority an invoice or receipt as evidence for the amounts to be paid; and

s 4 13 s 4 Rural and Regional Adjustment Amendment Regulation (No. 6) 2005 No. 133, 2005 (b) for on-farm activities—an authorised officer certifies that the amounts stated on the invoice or receipt were necessarily incurred for the certified activities. ‘(3) If the primary producer carries out the work without employing outside labour, payment may be made only for the costs of fuel and machinery. ‘(4) Invoices for on-farm activities must be certified by an authorised officer.’. ENDNOTES 1 Made by the Governor in Council on 23 June 2005. 2 Notified in the gazette on 24 June 2005. 3 Laid before the Legislative Assembly on . . . 4 The administering agency is the Department of Primary Industries and Fisheries. © State of Queensland 2005