Rural and Regional Adjustment Amendment Regulation (No. 8) 2010 (Qld)

Queensland Rural and Regional Adjustment Amendment Regulation (No. 8) 2010 Subordinate Legislation 2010 No. 356 made under the Rural and Regional Adjustment Act 1994 Contents Page 1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 Regulation amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 Replacement of pt 5, hdg and insertion of new pt 5, div 1, hdg . . 2 4 Replacement of pt 6, hdg (Transitional provision for Rural andRegional Adjustment Amendment Regulation (No. 7) 2010) . . . . 2 5 Insertion of new pt 5, div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Division 3 Transitional provisions for Rural and Regional Adjustment Amendment Regulation (No. 8) 2010 14 Definitions for div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 15 Undecided application for loan under former development program or former resource development program. . . . . . . . . . . . . . . . . . . . . . . . . 3 16 Existing approved loans under former development program or former resource development program . . 4 6 Amendment of schedule (Approved assistance schemes). . . . . . 4

Rural and Regional Adjustment Amendment Regulation (No. 8) 2010 [s 1] 1 Short title This regulation may be cited as the Rural and Regional Adjustment Amendment Regulation (No. 8) 2010 . 2 Regulation amended This regulation amends the RuralandRegionalAdjustmentRegulation 2000. 3 Replacement of pt 5, hdg and insertion of new pt 5, div 1, hdg Part 5, heading— omit, insert— ‘Part 5 Transitional provisions ‘Division 1 Transitional provisions for Ruraland Regional AdjustmentAmendment Regulation (No. 3)2006’. 4 Replacement of pt 6, hdg (Transitional provision for Ruraland Regional Adjustment Amendment Regulation (No. 7)2010) Part 6, heading— omit, insert— ‘Division 2 Transitional provision for Rural andRegional Adjustment AmendmentRegulation (No. 7) 2010’. 5 Insertion of new pt 5, div 3 After section 13— insert— Page 2 2010 SL No. 356

Rural and Regional Adjustment Amendment Regulation (No. 8) 2010 [s 5] ‘Division 3 Transitional provisions for Rural and Regional Adjustment Amendment Regulation (No. 8) 2010 ‘14 Definitions for div 3 ‘In this division— commencement means the commencement of this section. former development program means the development program in force under the schedule, part 3, divisions 2 and 4 immediately before the commencement. former resource management program means the resource management program in force under the schedule, part 3, divisions 2 and 5 immediately before the commencement. ‘15 Undecided application for loan under former development program or former resource development program ‘(1) Subsection (2) applies if— (a) a person made an application for a loan under the former development program; and (b) the application is undecided immediately before the commencement. ‘(2) The application must be decided under the schedule, part 3, divisions 2 and 4 as in force immediately before the commencement, and those divisions apply in relation to a loan granted on the application. ‘(3) Subsection (4) applies if— (a) a person made an application for a loan under the former resource management program; and (b) the application is undecided immediately before the commencement. ‘(4) The application must be decided under the schedule, part 3, divisions 2 and 5 as in force immediately before the 2010 SL No. 356 Page 3

Rural and Regional Adjustment Amendment Regulation (No. 8) 2010 [s 6] commencement, and those divisions apply in relation to a loan granted on the application. ‘16 Existing approved loans under former development program or former resource development program ‘(1) Subsection (2) applies if a loan was approved under the former development program and is current. ‘(2) The schedule, part 3, divisions 2 and 4 as in force immediately before the commencement continue to apply to the loan. ‘(3) Subsection (4) applies if a loan was approved under the former resource management program and is current. ‘(4) The schedule, part 3, divisions 2 and 5 as in force immediately before the commencement continue to apply to the loan.’. 6 Amendment of schedule (Approved assistance schemes) (1) Schedule, section 27— omit, insert— ‘27 Objective of scheme ‘The objective of the scheme is to provide assistance that will— (a) strengthen the economy of Queensland regions; and (b) facilitate the development of sustainable primary production in Queensland.’. (2) Schedule, section 28(1)(b) and (c)— omit, insert— ‘(b) the sustainability program.’. (3) Schedule, section 29, definitions authorised officer , certified activities , development program , primary producer and resource management program— omit. (4) Schedule, section 29— insert— Page 4 2010 SL No. 356

Rural and Regional Adjustment Amendment Regulation (No. 8) 2010 [s 6] ‘ mutual obligation condition see section 36A(1). primary producer means— (a) a sole trader who spends the majority of his or her labour on, and derives the majority of his or her income from, a primary production enterprise; or (b) partners in a partnership, shareholders in a company or beneficiaries of a trust, who spend the majority of their labour on, and derive the majority of their income from, a primary production enterprise. sustainability program means the part of the scheme set out in divisions 2 and 4.’. (5) Schedule, section 29, definition management plan , paragraph (b)— omit, insert— ‘(b) adopts a timely whole of business approach to sustainable primary production and includes components of sustainable management relevant to— (i) viability; and (ii) productivity; and (iii) managing the impacts of the activity on the natural resource base where the activity is to be carried out and other ecosystems affected by the activity; and (iv) managing business and climate risks; and’. (6) Schedule, section 30(b), ‘, 43 or 47’— omit, insert— ‘or 43’. (7) Schedule, section 32(1)— omit, insert— ‘(1) The initial interest rate under the scheme for a loan to an applicant will be worked out when the applicant first draws down the loan in part or full.’. (8) Schedule, section 32(2)(a)— 2010 SL No. 356 Page 5

Rural and Regional Adjustment Amendment Regulation (No. 8) 2010 [s 6] omit, insert— ‘(a) depends on whether the interest rate is fixed for 1, 3 or 5 years, as decided by the applicant when the applicant first draws down the loan in part or full; and’. (9) Schedule, section 32(5)— renumber as section 32(6). (10) Schedule, section 32(4)— omit, insert— ‘(4) If, under subsection (3), the authority decides to increase the interest rate because the applicant’s financial capacity improves during the term of the loan, the authority may decide the extent to which the interest rate for the loan will increase— (a) in an annual review of the loan; and (b) based on the improvement. ‘(5) The power conferred by subsection (4) may be exercised more than once in relation to the applicant.’. (11) Schedule, section 34(2)— omit, insert— ‘(2) The security required is— (a) a mortgage of land or other assets that is— (i) satisfactory to the authority; and (ii) commensurate with the amount of the loan; and (b) any other security the authority considers necessary, including, for example, a bill of sale, crop lien or stock mortgage.’. (12) Schedule, part 3, division 2, after section 36— insert— ‘36A Mutual obligation condition of loan—reporting outcomes ‘(1) It is a condition ( mutual obligation condition ) of a loan under the scheme that the applicant for the loan give the authority Page 6 2010 SL No. 356

Rural and Regional Adjustment Amendment Regulation (No. 8) 2010 [s 6] reports on the outcomes achieved with the funds loaned to the applicant. ‘(2) The reports must be given to the authority in the form, and at the intervals, stated in the written offer of a loan given to the applicant by the authority.’. (13) Schedule, section 37(2)— omit, insert— ‘(2) The purpose of assistance under the first start program is to enable an applicant to become a primary producer by assisting the applicant— (a) to acquire and operate a viable primary production enterprise; or (b) to acquire and operate a primary production enterprise on a staged basis, as part of a longer term plan for the applicant to operate a viable primary production enterprise; or (c) to enter the existing primary production enterprise of the applicant’s parents or other family member, as a part of a longer term plan for the applicant to operate a viable primary production enterprise in the applicant’s own right; or (d) to enter into a leasing, sharefarming or sharefishing arrangement that will lead to the applicant operating a viable primary production enterprise; or (e) to upgrade, build up or develop 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.’. (14) Schedule, section 38, ‘$500000’— omit, insert— ‘$650000’. (15) Schedule, section 39(1)(a), ‘2 years’— omit, insert— ‘6 months’. 2010 SL No. 356 Page 7

Rural and Regional Adjustment Amendment Regulation (No. 8) 2010 [s 6] (16) Schedule, section 39(1)(d), after ‘is to’— insert— ‘enter the existing primary production enterprise or’. (17) Schedule, section 39(1)(i) and (j)— omit, insert— ‘(i) trade in the applicant’s own right or satisfy the authority that the applicant’s entry into the existing primary production enterprise of the applicant’s parents or other family member is part of a longer term plan to ultimately trade in the applicant’s own right; and (j) give the authority a management plan that shows the stages of a planned progression towards a viable first primary production enterprise.’. (18) Schedule, section 39(3)— omit. (19) Schedule, part 3, divisions 4 and 5— omit, insert— ‘Division 4 Sustainability program ‘41 Purpose of assistance under sustainability program ‘The purpose of assistance under the sustainability program is to enable a primary producer to implement systems and management practices that enhance sustainable primary production by— (a) increasing productivity and long-term viability; and (b) avoiding or minimising adverse impacts on— (i) the natural resource base where the activity for which the assistance is received is performed; and (ii) other ecosystems affected by the activity; and (c) adopting systems and practices to mitigate the effects of climate, drought and market risks. Page 8 2010 SL No. 356

Rural and Regional Adjustment Amendment Regulation (No. 8) 2010 [s 6] ‘42 Maximum loan amounts and outstanding loan balances ‘(1) The maximum amount of a loan under the sustainability program is $650000. ‘(2) The maximum combined outstanding loan balance under the sustainability program and any of the following is $650000— (a) the former development program; (b) the former resource management program; (c) the former development program and former resource management program. Examples — 1 A person who has an outstanding loan balance of $200000 under the former development program may obtain a loan of up to $450000 under the sustainability program. 2 A person who has an outstanding loan balance of $150000 under the former resource management program may obtain a loan of up to $500000 under the sustainability program. 3 A person who has an outstanding loan balance of $300000 under the former development program and $100000 under the former resource management program may obtain a loan of up to $250000 under the sustainability program. ‘(3) The maximum amount of a loan under the sustainability program to buy livestock is $200000. ‘(4) The maximum amount of a loan under the sustainability program to do 1 or more of the following is $200000— (a) upgrade plant or machinery; (b) buy plant or machinery; (c) replace plant or machinery. ‘(5) In this section— former development program see section 13 of this regulation. former resource management program see section 13 of this regulation. 2010 SL No. 356 Page 9

Rural and Regional Adjustment Amendment Regulation (No. 8) 2010 [s 6] ‘43 Eligibility criteria ‘To be eligible to receive assistance under the sustainability program, the applicant must— (a) demonstrate to the satisfaction of the authority— (i) that the applicant is a primary producer; and (ii) that the applicant is working full-time and has worked full-time for at least 2 years in the applicant’s primary production enterprise; and (iii) sound prospects for commercial viability, and the ability to service the loan, in the long term; and (iv) 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 (v) if the assistance is sought to rationalise a partnership—that the proposal for the rationalisation is not merely a refinance arrangement; and (vi) if the assistance is sought to upgrade, buy or replace plant or machinery—the plant or machinery will be used predominantly for the enterprise; and (b) provide evidence of a financial need for the assistance; and (c) give the authority a management plan that outlines the intended outcomes associated with the activity for which the applicant is applying for assistance; and (d) if the assistance is sought for on-farm activities for which a licence, permit, approval or other authorisation under an Act is required before the activity can be conducted—give the chief executive a copy of the authorisation. Page 10 2010 SL No. 356

Rural and Regional Adjustment Amendment Regulation (No. 8) 2010 [s 6] ‘44 Maximum term of loan ‘(1) The maximum term of a loan for 1 or more of the following is 7 years— (a) buying livestock; (b) upgrading plant or machinery; (c) buying plant or machinery; (d) replacing plant or machinery. ‘(2) However, the authority may extend the maximum term of the loan to not more than 20 years if— (a) the activities mentioned in subsection (1) are a minor part of the activities for which the applicant is applying for loans under the sustainability program; or (b) having a maximum term of 7 years for a loan would adversely affect the applicant’s prospects for commercial viability and the ability to service the loan in the long term. ‘(3) The maximum term of a loan, other than a loan mentioned in subsection (1), is 20 years.’. ENDNOTES 1 Made by the Governor in Council on 9 December 2010. 2 Notified in the gazette on 10 December 2010. 3 Laid before the Legislative Assembly on . . . 4 The administering agency is the Department of Employment, Economic Development and Innovation. © State of Queensland 2010 2010 SL No. 356 Page 11