Rural and Regional Adjustment Amendment Regulation (No. 8) 2005 (Qld)

Queensland Rural and Regional Adjustment Amendment Regulation (No. 8) 2005 Subordinate Legislation 2005 No. 189 made under the Rural and Regional Adjustment Act 1994 Contents Page 1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 Regulation amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 Insertion of new ss 8C and 8D . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 8C Approval of Drought Carry-on Finance Scheme . . . . 2 8D Approval of Drought Recovery Scheme . . . . . . . . . . . 2 4 Amendment of schedule (Approved assistance schemes). . . . . . 2

s1 2 s4 Rural and Regional Adjustment Amendment Regulation (No. 8) 2005 No. 189, 2005 1 Short title This regulation may be cited as the Rural and Regional Adjustment Amendment Regulation (No. 8) 2005 . 2 Regulation amended This regulation amends the RuralandRegionalAdjustmentRegulation 2000. 3 Insertion of new ss 8C and 8D Part 3— insert— ‘8C Approval of Drought Carry-on Finance Scheme ‘The Drought Carry-on Finance Scheme set out in the schedule, part 4, is approved. ‘8D Approval of Drought Recovery Scheme ‘The Drought Recovery Scheme set out in the schedule, part 5, is approved.’. 4 Amendment of schedule (Approved assistance schemes) (1) Schedule, before part 1 heading, ‘sections 8 to 8B’— omit, insert— ‘ sections 8 to 8D ’. (2) Schedule, section 1, heading ‘schedule,’— omit . (3) Schedule, section 1, ‘In part 1 of this schedule’— omit , insert — ‘In this part’. (4) Schedule, section 13, heading ‘schedule,’— omit .

s4 3 s4 Rural and Regional Adjustment Amendment Regulation (No. 8) 2005 No. 189, 2005 (5) Schedule, section 13, ‘In part 2 of this schedule’— omit , insert — ‘In this part’. (6) Schedule, after section 49— insert— ‘Part 4 Drought Carry-on Finance Scheme ‘50 Definitions for pt 4 ‘In this part— drought affected area see section 51. 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 ‘51 What is a drought affected area ‘A drought affected area is any area of a local government that the Minister decides is severely affected by drought.

s4 4 s4 Rural and Regional Adjustment Amendment Regulation (No. 8) 2005 No. 189, 2005 ‘52 Objective of scheme ‘The objective of the scheme is to assist primary producers who are carrying on primary production enterprises in drought affected areas. ‘53 Nature of assistance ‘The nature of the assistance that may be given under the scheme is loans at concessional rates of interest. ‘54 Maximum loan amounts ‘The maximum amount of a loan, or total outstanding loan balance, under the scheme is $100000. ‘55 Eligibility criteria ‘For an applicant to be eligible to receive assistance under the scheme— (a) the applicant must— (i) own or occupy land, and carry on a primary production enterprise on the land, in a drought affected area; and (ii) demonstrate that the current net value of the land is not greater than $2 million; and (iii) demonstrate that the applicant occupies the land and spends the majority of the applicant’s labour on the primary production enterprise— (A) as a leaseholder, owner or sharefarmer; or (B) as a member or employee of a company, trust or partnership; and (iv) ordinarily obtain the applicant’s major source of income from the enterprise; and (v) not have been granted assistance from 1 April 2003 under a scheme called the Drought Relief

s4 5 s4 Rural and Regional Adjustment Amendment Regulation (No. 8) 2005 No. 189, 2005 Assistance Scheme, 1 administered by the chief executive; and (b) the authority must be satisfied that— (i) the applicant’s enterprise has sound prospects for commercial viability, and the applicant has the ability to service the loan, in the long-term; and (ii) the amount of the applicant’s non-enterprise or liquid assets, other than insurance bonds and superannuation, is not more than the limit for the Assets test for homeowners—Partnered (combined) for the Newstart Allowance; 2 and (iii) the applicant has taken reasonable precautions to minimise the effects of drought; and (iv) the drought has impacted adversely on the applicant’s primary production enterprise, causing a financial need for the assistance. ‘56 Maximum term of loan ‘The maximum term of a loan is 7 years. ‘57 Terms of repayment ‘(1) Repayment of principal and interest on a loan will be initially calculated using a period of up to 7 years. ‘(2) An interest only period of not more than 2 years may be available. ‘(3) A loan will have an initial interest rate that is fixed under section 58. 1 At the commencement of section 55, the Drought Relief Assistance Scheme was set out in detail on the department’s website at < 2 At the commencement of section 55, the limit for the Assets test for homeowners—Partnered (combined) for the Newstart Allowance was stated on Centrelink’s website at < s4 6 s4 Rural and Regional Adjustment Amendment Regulation (No. 8) 2005 No. 189, 2005 ‘58 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) A 3 year or 5 year fixed interest rate is available only when the loan is first drawn down. ‘(4) If the initial interest rate for a loan is fixed for 3 or 5 years under subsection (3), at the end of the relevant period, and on each subsequent anniversary, the interest rate reverts to the base lending rate that is the 1 year lending rate applying at the time. ‘(5) However, the authority may, during the term of the loan, increase the interest rate from the interest rate mentioned in subsection (4) to a commercial rate. ‘(6) The authority may decide the extent to which the interest rate for the loan will increase under subsection (5)— (a) in an annual review of the loan; and (b) based on the improved financial capacity of the applicant. ‘(7) 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%. ‘59 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—

s4 7 s4 Rural and Regional Adjustment Amendment Regulation (No. 8) 2005 No. 189, 2005 (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. ‘60 Applications ‘(1) An application for assistance under the scheme must be— (a) made on the application form approved by the authority; 3 and (b) accompanied by the documents stated on the application form; and (c) lodged with the authority. ‘(2) Applications must be made before the later of the following days— (a) 30 June 2006; (b) another day decided by the Minister. ‘61 Deciding applications ‘The authority must consider and decide to approve or refuse to approve each application for assistance. ‘Part 5 Drought Recovery Scheme ‘62 Definitions for pt 5 ‘In this part— crop materials see section 65(a). drought affected area see section 63. 3 At the commencement of section 55, a copy of an application form was available on the authority’s website at < s4 8 s4 Rural and Regional Adjustment Amendment Regulation (No. 8) 2005 No. 189, 2005 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 ‘63 What is a drought affected area ‘A drought affected area is any area of a local government that the Minister decides is severely affected by drought. ‘64 Objective of scheme ‘The objective of the scheme is to assist primary producers who are carrying on primary production enterprises in drought affected areas to recover from the impact of the drought. ‘65 Purpose of assistance ‘The purpose of assistance under the scheme is to enable applicants— (a) to plant or invigorate crops by assisting them to buy chemicals, fertilizer, fuel, seed or seedlings ( crop materials ); and (b) to restock by assisting them to buy stock. ‘66 Nature of assistance ‘The nature of the assistance that may be given under the scheme is loans at concessional rates of interest. ‘67 Maximum loan amounts ‘(1) The maximum amount of a loan, or total outstanding loan balance, under the scheme is $200000.

s4 9 s4 Rural and Regional Adjustment Amendment Regulation (No. 8) 2005 No. 189, 2005 ‘(2) If a loan is to assist with planting or invigorating crops— (a) the maximum loan amount to buy crop materials is $60000; and (b) the loan will be limited to the cost of planting or invigorating a crop for an area that is the average of the areas planted for the previous 3 crops. ‘(3) If the loan is for restocking, the maximum amount of a loan is— (a) for buying breeding stock—$200000; or (b) for buying stock other than breeding stock—$100000. ‘68 Eligibility criteria ‘For an applicant to be eligible to receive assistance under the scheme— (a) the applicant must— (i) own or occupy land, and carry on a primary production enterprise on the land, in a drought affected area; and (ii) demonstrate that the current net value of the land is not greater than $2 million; and (iii) demonstrate that the applicant occupies the land and spends the majority of the applicant’s labour on the primary production enterprise— (A) as a leaseholder, owner or sharefarmer; or (B) as a member or employee of a company, trust or partnership; and (iv) ordinarily obtain the applicant’s major source of income from the enterprise; and (b) the authority must be satisfied that— (i) the applicant’s enterprise has sound prospects for commercial viability, and the applicant has the ability to service the loan, in the long-term; and

s 4 10 s 4 Rural and Regional Adjustment Amendment Regulation (No. 8) 2005 No. 189, 2005 (ii) the applicant has exhausted all liquid assets and lines of credit the authority considers suitable; and (iii) there is a financial need for the assistance. ‘69 Maximum term of loan ‘The maximum term of a loan is— (a) for buying crop materials—5 years; or (b) for buying stock—7 years. ‘70 Terms of repayment ‘(1) Repayment of principal and interest on a loan to a primary producer will be initially worked out— (a) for buying crop materials—using a period of up to 5 years; or (b) for buying stock—using a period of up to 7 years. ‘(2) However, repayment of principal and interest on the loan will be tailored to the primary producer’s individual requirements based on the producer’s income patterns. ‘(3) If a loan is to buy crop materials for planting or invigorating a crop, repayment of the loan must be made from proceeds of the sale of the crop and, if the authority decides, from proceeds of the sale of any subsequent crop. ‘(4) A loan will have an initial interest rate that is fixed under section 71. ‘71 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

s 4 11 s 4 Rural and Regional Adjustment Amendment Regulation (No. 8) 2005 No. 189, 2005 (b) is worked out by the authority based on the base lending rate for the relevant period. ‘(3) A 3 year or 5 year fixed interest rate is available only when the loan is first drawn down. ‘(4) If the initial interest rate for a loan is fixed for 3 or 5 years under subsection (3), at the end of the relevant period, and on each subsequent anniversary, the interest rate reverts to the base lending rate that is the 1 year lending rate applying at the time. ‘(5) However, the authority may, during the term of the loan, increase the interest rate from the interest rate mentioned in subsection (4) to a commercial rate. ‘(6) The authority may decide the extent to which the interest rate for the loan will increase under subsection (5)— (a) in an annual review of the loan; and (b) based on the improved financial capacity of the applicant. ‘(7) 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%. ‘72 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. ‘73 Applications ‘(1) An application for assistance under the scheme must be—

s 4 12 s 4 Rural and Regional Adjustment Amendment Regulation (No. 8) 2005 No. 189, 2005 (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) Applications must be made before the later of the following days— (a) 30 June 2006; (b) another day decided by the Minister. ‘74 Deciding applications ‘The authority must consider and decide to approve or refuse to approve each application for assistance. ‘75 Payment ‘(1) This section applies to the authority making payments to— (a) a primary producer who is receiving assistance under the scheme; or (b) a person from whom the producer has bought crop materials or stock. ‘(2) Payment may be made only if the primary producer gives the authority an invoice or receipt as evidence for the amounts to be paid.’. 4 At the commencement of section 73, a copy of the application form was available on the authority’s website at < 13 Rural and Regional Adjustment Amendment Regulation (No. 8) 2005 No. 189, 2005 ENDNOTES 1 Made by the Governor in Council on 11 August 2005. 2 Notified in the gazette on 12 August 2005. 3 Laid before the Legislative Assembly on . . . 4 The administering agency is the Department of Primary Industries and Fisheries. © State of Queensland 2005 Authorised by the Parliamentary Counsel and printed by the Government Printer