State Grants (Rural Adjustment) Act 1988 (Cth)

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States Grants (Rural Adjustment) Act 1988

Act No. 112 of 1988 as amended

[Note: This Act was repealed by Act No. 5 of 2011 on 22 March 2011]

This compilation was prepared on 1 November 2000

taking into account amendments up to Act No. 239 of 1992

The text of any of those amendments not in force

on that date is appended in the Notes section

The operation of amendments that have been incorporated may be

affected by application provisions that are set out in the Notes section

Prepared by the Office of Legislative Drafting and Publishing,

Attorney‑General’s Department, Canberra

Contents

An Act relating to an agreement between the Commonwealth and one or more of the States, the Northern Territory and the Australian Capital Territory in respect of a scheme to provide assistance to persons engaged in rural industries

1Short title [see Note 1]

This Act may be cited as the States Grants (Rural Adjustment) Act 1988.

2Commencement [see Note 1]

This Act commences on the day on which it receives the Royal Assent.

3Interpretation [see Table B]

In this Act:

State includes the Northern Territory and the Australian Capital Territory.

4Approval of execution of agreement

The execution, on behalf of the Commonwealth, of an agreement between the Commonwealth and all or any of the States substantially in accordance with the form set out in Schedule 1 is approved.

4AApproval of execution of first amending agreement

The execution, on behalf of the Commonwealth, of an agreement between the Commonwealth and all or any of the States substantially in accordance with the form set out in Schedule 2 is approved.

4BApproval of execution of second amending agreement

The execution, on behalf of the Commonwealth, of an agreement between the Commonwealth and all or any of the States substantially in accordance with the form set out in Schedule 3 is approved.

4CApproval of execution of supplemental agreement with the Australian Capital Territory

The execution, on behalf of the Commonwealth, of an agreement between the Commonwealth and the Australian Capital Territory substantially in accordance with the form set out in Schedule 4 is approved.

5Payments by Commonwealth

The payments by the Commonwealth to a State provided for in the agreement referred to in section 4, as amended or affected by the agreements mentioned in sections 4A, 4B and 4C, may be made to that State, by way of financial assistance, on the terms and conditions contained in that agreement as so amended or affected, out of moneys appropriated by the Parliament for the purpose.

Schedule 1

Section 4

AN AGREEMENT made between—

THE COMMONWEALTH OF AUSTRALIA (in this agreement called “the Commonwealth”) of the first part,

THE STATE OF NEW SOUTH WALES of the second part,

THE STATE OF VICTORIA of the third part,

THE STATE OF QUEENSLAND of the fourth part,

THE STATE OF WESTERN AUSTRALIA of the fifth part,

THE STATE OF SOUTH AUSTRALIA of the sixth part,

THE STATE OF TASMANIA of the seventh part,

THE NORTHERN TERRITORY OF AUSTRALIA of the eighth part,

WHEREAS—

(A) The Commonwealth, the States and the Northern Territory of Australia entered into an Agreement dated 26 September 1985 and an Amending Agreement dated 8 December 1986 relating to rural adjustment (“the amended Agreement”);

(B) The recommendations of a review, undertaken on behalf of those governments, of the amended Agreement are that the scheme for which it provides be redirected towards enabling rural industries to better contribute to the national economy through increased efficiency and consequent international competitiveness and to this end to enhance the role and thereby the responsibility of the States and the Northern Territory in relation to the scheme;

(C) It has been decided to adopt these recommendations by continuing the payment of financial assistance to the States and the Northern Territory under this agreement; and

(D) The Parliament of the Commonwealth has authorized the execution of this agreement by and on behalf of the Commonwealth and the provision of financial assistance to the States and the Northern Territory of Australia as provided in this agreement.

NOW IT IS HEREBY AGREED as follows:

I—INTRODUCTION

Operation of Agreement

1. (1) In this agreement, each State and the Northern Territory of Australia in respect of which the agreement has come into force is referred to as a “State”, and the expression “the States” means, except where the context otherwise requires, all of the States and the Northern Territory of Australia in respect of which for the time being the agreement is in force.

(2) This agreement shall, as between the Commonwealth and a State executing this agreement on or before 1 January 1989, come into force on that date, or if executed thereafter, on that later date and the amended Agreement shall thereupon cease as between the Commonwealth and that State.

(3) Notwithstanding that in this agreement all the States of New South Wales, Victoria, Queensland, South Australia, Western Australia and Tasmania and the Northern Territory of Australia are named as parties, this agreement shall operate as an agreement between the Commonwealth and the party or parties in respect of which it comes into force as fully and effectually as if the party or parties in respect of which it comes into force were the only party or parties so named other than the Commonwealth.

(4) In the event that a State ceases to be a party this agreement shall nevertheless continue in force with respect to the Commonwealth and the States which are parties when the cessation takes effect.

Performance of Agreement

2. The Commonwealth will provide for or secure the performance by it and its authorities of the obligations of the Commonwealth under this agreement and each of the States will provide for or secure the performance by the State and its authorities and instrumentalities of the obligations of the State under this agreement.

Interpretation

3. (1) In this agreement, unless the contrary intention appears—

“aquaculture” means industries which conduct systematic farming of plants and animals in water involving the use of man‑made infrastructure on or adjacent to land, but excludes harvesting‑type industries where farming or cultivating is not an integral part of the operation;

“authority” means an authority of a State which has from time to time the administration of the Scheme on behalf of the State;

“farm enterprise” means an enterprise carried on by a primary producer within any rural industry in a State or in the Northern Territory;

“farmer” means a person engaged in a rural industry in a State or in the Northern Territory;

“financial year” means:

(a) where the agreement does not comes into force with a State on 1 July, in relation to that State the period from the date it comes into force up to and including 30 June which next occurs after this agreement comes into force and thereafter each succeeding period of twelve months; and

(b) where this agreement does so come into force, a period of twelve months ending on 30 June;

“the Minister” means the Minister for Primary Industries and Energy;

“rural industry” means any of the agricultural, horticultural, pastoral, apicultural and aquacultural industries; and

“the Scheme” means the scheme of assistance to be established and operated by a State in accordance with clause 9.

(2) A reference in this agreement to a Minister of the Commonwealth or of a State shall include a reference to a Minister for the time being acting for or on behalf of the Minister referred to or to a Minister who has taken over the responsibilities of the Minister under this agreement.

(3) A reference in this agreement to a State shall include a reference to an authority or authorities of a State that has or have the administration of the Scheme on behalf of the State.

(4) In this agreement, except where the context otherwise requires—

(a) a reference to a clause refers to the relevant clause of this agreement; and

(b) a reference to a sub‑clause refers to the relevant sub‑clause of the clause in which the reference appears.

II—THE SCHEME

Purpose of Scheme

4. (1) The purpose of the Scheme is to assist in maintaining and improving the efficiency of Australian rural industry and so better place the industry to meet international competition and contribute to the national economy.

(2) In this context the Scheme is to contribute to the process of promoting an efficient and competitive rural sector through providing assistance and services to help farmers adjust to changing technical, economic and institutional circumstances by:

(a) promoting, facilitating and encouraging better financial and technical performance and structure of rural industry to meet emerging needs;

(b) assisting those farmers whose farm enterprises have the capacity to become profitable in the long‑term but which are experiencing financial problems arising from circumstances beyond their control;

(c) assisting farmers without prospects in the rural industry to leave it.

(3) In pursuit of this purpose, it is recognised that:

(a) structural adjustment encompasses the longer‑term and more permanent ways in which farmers respond to change in the economic, technical and institutional environment;

(b) the appropriate response for assistance from the Scheme will vary from time to time according to the particular circumstances facing rural industries; and

(c) the Authorities administering the Scheme will need to identify problems and trends in rural industry, regions and on individual farms to provide the appropriate assistance measures so that farmers become financially independent of the assistance within a reasonable period.

Objectives

5. The objectives of the Scheme are to provide incentives, in the form of funds and services, in an efficient and effective manner, to enable farmers to:

(a) overcome financial difficulties arising from causes beyond their control;

(b) improve their performance by changing the size of their farms, improving managerial and financial skills, or by the adoption of improved practices and technology;

(c) make an orderly exit if, after all options have been considered, the farmers are without prospects in the rural industry.

Strategies

6. (1) The strategies to be adopted to overcome financial difficulties arising from causes beyond a farmer’s control shall be to facilitate:

(a) carry‑on finance; and

(b) capital restructuring.

(2) The strategies to be adopted to improve farm performance shall be to facilitate:

(a) the acquisition of improved skill levels;

(b) the adoption of technological developments;

(c) increase in farm size or capital intensity;

(d) farm program changes; and

(e) access to information on technological developments and their application, training needs and opportunities and appropriate farm programs.

(3) The strategies to be adopted to permit farmers to make an orderly exit from rural industry if, after all options have been considered, the farmers are without prospects in the rural industry, shall be to:

(a) alleviate personal hardship prior to departure;

(b) assist farmers to realise farm assets in an orderly manner; and

(c) assist farmers to re‑establish post‑farming.

(4) For the purposes of sub‑clauses 6 (2) and 6 (3) trading in land by a State is permissible only where:

(a) the trading does not distort the market for land;

(b) large land stocks are not accumulated by the State; and

(c) proceeds of transactions are retained for use in the operation of the Scheme.

(5) From time to time it may be necessary to develop other strategies to meet changing circumstances.

Operations

7. (1) Given the nature of the assistance to be provided and that the application of funds provided under the Scheme will be most effective when the operations of States are responsive to the specific circumstances pertaining to the recipient, decisions on the form of assistance to be provided to an applicant will be taken at the State level, with full knowledge of local and regional situations.

(2) To achieve this the Commonwealth’s role will be to:

(a) provide clear policy guidelines within which the scheme is to operate; and

(b) establish an appropriate reporting mechanism to permit the monitoring and assessment of the efficiency and effectiveness with which the Scheme is operating.

(3) The Commonwealth in consultation with the State will, where appropriate, establish policy guidelines concerning:

(a) criteria to be adopted in assessing eligibility for assistance;

(b) outcomes expected from assistance under the Scheme;

(c) requirements for review of assisted farmers; and

(d) determination of funding.

(4) The State’s role will be to:

(a) manage funds provided under the Scheme;

(b) be responsible and accountable for the achievement of the objectives of the Scheme.

(5) With a view to achieving the purposes and objectives of the Scheme the principal functions of the State authorities in administering the Scheme will be to:

(a) assess the eligibility of farmers for assistance;

(b) determine, after full consideration of each individual case, the form of assistance, or combination of forms of assistance, if any, most appropriate to the particular circumstances facing the farmers;

(c) deliver funds and services in accordance with policy guidelines established by the Commonwealth from time to time;

(d) review the effectiveness of assistance provided to farmers on a periodic basis;

(e) account to the Commonwealth at a frequency, and in a manner, determined from time to time by the Commonwealth in consultation with the States, as to the:

(i) disbursment of funds in compliance with the purpose for which they were voted;

(ii) effectiveness with which the funds have been used to achieve the objectives of the Scheme;

(iii) efficiency with which Commonwealth funds have been administered;

(f) promote the purpose and scope of the Scheme to the farming and financial communities and other interested persons.

Eligibility

8. (1) A person is engaged in a rural industry if under normal circumstances the principal source of income of that person is from a farm enterprise to which the person contributes a significant part of his or her labour and capital.

(2) The State may decide that in respect of the same farm enterprise more than one member of a family or group is to be considered as being engaged in a rural industry.

III—ADMINISTRATION OF SCHEME

State to Operate Scheme

9. (1) Each State will use the financial assistance provided by the Commonwealth in accordance with this agreement, to establish and operate a scheme of assistance to persons engaged in a rural industry in that State.

(2) The Scheme shall consist of the forms of assistance referred to in clause 10 and shall be operated in conformity with the objectives and other provisions set out in Part II.

Forms of Assistance to those engaged in rural industries

10. (1) For the purposes of paragraph (b) of sub‑clause 6 (1), sub‑clause 6 (2) and paragraph (b) of sub‑clause 6 (3), assistance under the Scheme, to be known as Part A assistance, shall be by way of:

(a) grants by the State for the purpose of interest subsidies both of interest payable on, and associated costs of, loans, whether the loan is provided by the State or others; and

(b) grants or loans by the State for the above purposes other than those of paragraph (a).

(2) For the purposes of paragraph (a) of sub‑clause 6 (1) assistance under the Scheme, to be known as Part B assistance, shall be by way of grants by the State for the purpose of interest subsidies both of interest payable on, and associated costs of, loans, whether by the State or others. Subsidies paid under this sub‑clause shall not exceed 50% of the interest payable on, and associated costs of, such loans and the State shall bear half the cost of the subsidies out of its own funds.

(3) For the purposes of paragraphs (a), (b) and (c) of sub‑clause 6 (3), assistance under the Scheme, to be known as Part C assistance, shall be by way of grants or loans by the State.

(4) Part A assistance may also be used, subject to sub‑clause 6 (4), for transactions involving the land of farmers.

Conditions

11. The Minister may from time to time subject to this agreement, and after consultation with the Minister or Ministers of the relevant State or States, determine policy guidelines applying to forms of assistance under the Scheme.

Terms of loans by a State

12. (1) The rates of interest at which money is advanced by the State under the Scheme in providing Part A, Part B and Part C assistance, whether from financial assistance provided under this agreement or otherwise shall be as determined by the State authority.

(2) The length of loans and the period during which an interest subsidy applies in respect of loans shall be as determined by the State authority.

(3) The State authority shall have the right to review the terms of repayment, including interest rates of individual accounts, at any time and shall exercise this right at regular intervals with the objective of the borrower being encouraged to move to commercial credit as soon as circumstances permit.

IV—FINANCIAL ASSISTANCE

Provision of Financial Assistance

13. Subject to, and to the performance by a State of, the provisions of this agreement, the Commonwealth will make financial assistance available to the States for the purposes of the Scheme.

Amount of Financial Assistance

14. (1) Subject to this agreement, the amounts of financial assistance to be made available by the Commonwealth to each State for Part C assistance and, except as to amounts provided for by paragraph 2 (a), Part A assistance during a financial year shall be separately determined for each of those Parts by the Commonwealth after consultation with the States. Before the commencement of the financial year the Minister and State Ministers will consult taking into account such matters as are set out in clauses 4 and 5.

(2) The amount payable by the Commonwealth in relation to Part A assistance in respect of any financial year shall not be less than—

(a) in respect of each of the first seven financial years of this agreement as is a financial year within the first six financial years:

(i) after the first financial year of the amended Agreement, the amount of any Determination or Determinations of Part A assistance made in that first financial year under the amended Agreement;

(ii) after the second financial year of the amended Agreement, the incremental part of any Determination or Determinations of Part A assistance made in that second financial year under the amended Agreement; and

(iii) after the third or any subsequent financial year of the amended Agreement, the incremental part of any Determination or Determinations of Part A assistance made in that third or subsequent financial year as the case may be under the amended Agreement;

(b) in respect of each of the first seven financial years of this agreement the amount of Part A assistance determined under this agreement by the Minister as payable in respect of an immediately preceding financial year of this agreement; and

(c) in respect of each succeeding period of seven financial years of this agreement:

(i) as to the first year, the sum of the increments of amounts of Part A assistance determined under this agreement in respect of the second to the seventh inclusive of the immediately preceding seven financial years; and

(ii) as to the remaining six years, the sum of the increments of those amounts so determined in respect of the immediately preceding six financial years of this agreement.

(3) The amount to be made available to a State during a financial year determined under sub‑clause (1) may, at any time the Commonwealth so considers fit, after consultation with the other States, be increased by the addition of a supplementary amount determined by the Commonwealth at that time.

(4) The amount of financial assistance to be made available by the Commonwealth to a State for Part B assistance shall be determined at the time the Commonwealth and the State agree that the provision of such assistance is warranted.

Administration Expenses

15. The Commonwealth will make monthly payments in advance to a State towards administration expenses of the State in providing assistance under the scheme as agreed, between the Minister and the Minister of each State.

Provision for losses

16. The Commonwealth shall not be liable to reimburse a State for any losses of that State which result from the operation under this agreement of this Scheme but financial assistance made available by the Commonwealth, or income earned on that assistance, may be used by the State to make provision for any losses likely to result from the operation by it of the Scheme.

Payments of Financial Assistance

17. (1) The Commonwealth shall, subject to this agreement, make monthly payments to the State of the financial assistance to be provided to it under this agreement.

(2) The Commonwealth may, at such time and in such amounts as the Minister thinks fit, make advances on account of the payment that may be made by the Commonwealth under sub‑clause (1).

(3) An amount or part of an amount advanced by the Commonwealth under this clause may be deducted by the Commonwealth from an amount that subsequently becomes payable under sub‑clause (1) or, if no further amounts will become payable under that sub‑clause, shall be refunded by the State to the Commonwealth at the request of the Minister.

Use of Advances and Other Moneys

18. (1) A State shall ensure that an amount or any part of an amount advanced to the State and not refunded under the last preceding clause is used or applied for the operation of the Scheme.

(2) A State shall ensure that:

(a) any financial assistance paid by the Commonwealth under the Scheme is used or applied for the operation of the Scheme;

(b) any money earned by it under the Scheme on financial assistance provided by the Commonwealth to the State under this agreement is used or applied for the operation of the Scheme; and

(c) any repayment of, or payment of interest on, loans made by the State funded from paragraph (a) or (b) are used or applied in the operation of the Scheme.

Pre‑commitment of Assistance

19. (1) Where the Minister has, upon the State establishing to the Minister’s satisfaction that the circumstances so warrant, authorized the State during a financial year to commit to the Scheme financial assistance to be received under this agreement during the next succeeding financial year, the State may approve the provision of assistance under the Scheme to the extent of the amount or amounts that have been so authorized by the Minister.

(2) Any amounts that are approved by the State under sub‑clause (1) shall be included in the amount of financial assistance to be made available by the Commonwealth to the State for the purposes of the Scheme as determined under clause 14 in respect of that next financial year.

Supporting Financial Evidence

20. (1) A State shall furnish to the Minister such documents and other evidence to justify payment of any moneys to the State under the Scheme as the Minister may from time to time reasonably request, whether the request by the Minister is made before or after the Commonwealth has made the advance or a payment pursuant to the request by the State.

(2) Information furnished by a State pursuant to sub‑clause (1) shall include details of accounts of borrowers from the State or otherwise under the Scheme, but not so as to identify borrowers, in a format agreed from time to time by Commonwealth and State Ministers.

Repayments of Part C Assistance

21. Each State shall, by way of repayment of Part C assistance, pay to the Commonwealth so much of that assistance and interest thereon as is recouped by the State in any year from the recipients of that assistance, such payments to be made on each 15th day of January and July next succeeding the receipt of those moneys by the State.

Audit

22. (1) The accounts, books, vouchers, documents and other records of a State relating to the operation of the Scheme shall be subject to audit carried out in accordance with Australian auditing standards by a registered company auditor or, if required by the State, the Auditor‑General of the State or his or her appointee.

(2) A report on the audits in respect of each financial year shall be furnished to the Minister by that auditor or Auditor‑General of the State, as the case may be, as soon as possible after the completion of the financial year and no later than 31 December of the succeeding financial year.

Other Financial Arrangements

23. Financial arrangements in connection with the Scheme, other than those provided for in this agreement, shall be carried out as agreed from time to time between the relevent Commonwealth and State Ministers responsible for such financial arrangements.

V—FINANCIAL ASSISTANCE FOR RELATED PURPOSES

Conditions

24. Subject to clause 25, the Commonwealth will provide, on conditions determined by the Commonwealth Minister but outside the Scheme, financial assistance to the States for expenditure by them in causing the Scheme to be the more effective.

Provisions Applicable

25.(1) The amount of financial assistance to be made available by the Commonwealth to each State for expenditure under clause 24 during a financial year shall be determined by the Commonwealth after consultation with the States.

(2) Clauses 17, 18, 20, 22, 27, 28 and 29 shall apply in relation to this Part as if it formed part of the Scheme.

VI—TRANSITIONAL

26. (1) Funds provided to the State by the Commonwealth under the amended Agreement which:

(a) are held by the State on the date on which this agreement comes into force; or

(b) become subsequently available to it

together with interest earned on the funds referred to in paragraphs (a) and (b) whether before or after that date and not disbursed are to be used by the State for the purposes of this agreement.

(2) The State hereby foregoes any accrued right existing at the date at which this agreement comes into force

(a) to a contribution from the Commonwealth for any losses; and

(b) to a payment by the Commonwealth of administration expenses

in relation to the Scheme established under the amended Agreement but the Commonwealth shall pay those administration expenses as if they arose under this agreement.

(3) Where the amended Agreement ceases prior to 30 June, action taken under the provisions of this agreement equivalent to clauses 19 and 25 and sub‑clause 20 (2) of the amended Agreement shall be considered to satisfy also those clauses and that sub‑clause if that action is taken in relation to the financial year ending on the date which, otherwise than for its cessation, would be the date on which a financial year of the amended Agreement would end.

VII—GENERAL

Review

27. (1) The operation of the Scheme in relation to all of the States will be reviewed from time to time as appropriate by the Commonwealth and the States in the light of experience in its administration.

(2) Where on a review of the operation of the Scheme the Ministers of the Commonwealth and of the States consider an amendment to the agreement should be made the Commonwealth Minister will seek to have the agreement so amended.

Exchange of Information

28. State and Commonwealth Officers associated with the Scheme will meet together as appropriate and at least once in each year and exchange information on any matters pertinent to the Scheme, including trends in adjustment assistance being provided to persons in rural industries having regard to the outlook for those industries.

Provision of Information and Review

29. The State will supply to the Commonwealth from time to time such information regarding the operation of the Scheme by the State for purposes of monitoring and accountability as agreed by the Commonwealth and the State.

Report to Parliament

30. The Minister shall on the basis of the information supplied by the States no later than 31 December of each financial year submit an annual report to the Parliament of the Commonwealth relating to the operation and effectiveness of the Scheme.

Loan Council

31. In the event that the Loan Council decides to include borrowings by the State for the purposes of Parts A and B assistance in borrowings subject to Loan Council control or oversight on terms which a State considered unacceptable, the Commonwealth and the States shall consult to determine whether any amendments should be made to this agreement.

Cessation of Agreement by a State

32. A State may, on giving at least a period of sixty days notice in writing to the Commonwealth, cease, subject to its performance thereafter of any outstanding obligation, to be a party to this agreement at the expiry of that period of notice.

Schedule 2

FIRST AMENDING AGREEMENT

Section 4A

THIS AMENDING AGREEMENT is made the day of

BETWEEN

THE COMMONWEALTH OF AUSTRALIA (in this agreement called “the Commonwealth”) of the first part,

THE STATE OF NEW SOUTH WALES of the second part,

THE STATE OF VICTORIA of the third part,

THE STATE OF QUEENSLAND of the fourth part,

THE STATE OF WESTERN AUSTRALIA of the fifth part,

THE STATE OF SOUTH AUSTRALIA of the sixth part,

THE STATE OF TASMANIA of the seventh part,

THE NORTHERN TERRITORY OF AUSTRALIA of the eighth part,

WHEREAS—

(A) The Commonwealth, the States and the Northern Territory of Australia entered into an Agreement relating to rural adjustment dated by the parties with various dates in December 1988 and January 1989, (“the Agreement”);

(B) It is desired to amend that Agreement, pursuant to clause 27, to give effect to changes recently agreed by the relevant Ministers of the Governments party to this Amending Agreement.

NOW IT IS HEREBY AGREED as follows:

1. (1) In this Amending Agreement, each State and the Northern Territory of Australia in respect of which the Amending Agreement has come into force is referred to as a “State”, and the expression “the States” means, except where the context otherwise requires, all of the States and the Northern Territory of Australia in respect of which for the time being the Amending Agreement is in force.

(2) This Amending Agreement shall, as between the Commonwealth and a State executing it, be deemed to have come into force on the 1st July 1991.

(3) Notwithstanding that in this Amending Agreement all the States of New South Wales, Victoria, Queensland, Western Australia, South Australia and of Tasmania and the Northern Territory of Australia are named as parties, this Amending Agreement shall operate as an agreement between the Commonwealth and the party or parties in respect of which it comes into force as fully and effectually as if the party or parties in respect of which it comes into force were the only party or parties so named other than the Commonwealth.

(4) In the event that a State ceases to be a party this Amending Agreement shall nevertheless continue in force with respect to the Commonwealth and the States which are parties when the cessation takes effect.

2. The Agreement is amended—

(a) by deleting the full stop at the end of paragraph 6 (1) (b) and inserting in its place a semi‑colon and then the word “and”;

(b) by adding to sub‑clause 6 (1) the following paragraph—

“(c) debt restructuring with interest subsidies;”;

(c) by deleting from sub‑clause 10(1) the words—

“For the purposes of paragraph (b) of sub‑clause 6 (1)” and inserting in their place the words “In relation to paragraphs (b) and (c) of sub‑clause 6 (1)”;

(d) by omitting paragraph 10.1 (b) and inserting the following paragraph in its place—

“(b) except for assistance under paragraph 6 (1) (c), grants or loans by the State for purposes other than the purpose referred to in paragraph (a).”;

(e) by deleting from sub‑clause 10 (2) the word “half” and inserting in its place the words “a third”;

(f) by inserting in sub‑clause 10 (4) after the word “assistance”, the words “, except that provided for by paragraph 6 (1) (c),”; and

(g) by inserting into sub‑clause 14 (2) after “Part A assistance” where first appearing in that sub‑clause, the words—

“except that provided for by paragraph 6 (1) (c)”;

(h) by adding to clause 14 the following sub‑clause—

“(5) Notwithstanding anything to the contrary in this agreement, the amount of Part A assistance described in paragraph 6 (1) (c) as determined by the Commonwealth pursuant to sub‑clause (1) shall be payable only for the financial years commencing on 1 July 1991 and 1 July 1992 and for any subsequent year for which the Commonwealth determines pursuant to this Agreement such assistance to be payable.”.

3. The Agreement is, save for the foregoing amendments, confirmed in all other respects.

IN WITNESS WHEREOF this Amending Agreement has been signed for and on behalf of the Parties as at the day and year first above written.

Schedule 3

SECOND AMENDING AGREEMENT

Section 4B

THIS FURTHER AMENDING AGREEMENT is made the day of

BETWEEN

THE COMMONWEALTH OF AUSTRALIA (in this Agreement called “the Commonwealth”) of the first part,

THE STATE OF NEW SOUTH WALES of the second part,

THE STATE OF VICTORIA of the third part,

THE STATE OF QUEENSLAND of the fourth part,

THE STATE OF WESTERN AUSTRALIA of the fifth part,

THE STATE OF SOUTH AUSTRALIA of the sixth part,

THE STATE OF TASMANIA of the seventh part, and

THE NORTHERN TERRITORY OF AUSTRALIA of the eighth part.

WHEREAS:

(A) The Commonwealth, the States and the Northern Territory of Australia entered into an Agreement relating to rural adjustment on or about December 1988 which has been amended by an Amending Agreement dated 20 December 1991 (which Agreement as so amended is herein called the “amended Agreement”); and

(B) It is desired to further amend the amended Agreement to give effect to certain initiatives in favor of the rural sector announced by the Prime Minister in his Statement to the Commonwealth Parliament on 26 February 1992.

NOW IT IS HEREBY AGREED as follows:

1. (1) In this Further Amending Agreement each State and the Northern Territory of Australia in respect of which the Further Amending Agreement has come into force is referred to as a “State” and the expression “the States” means, except where the expression otherwise requires, all of the States and the Northern Territory of Australia in respect of which for the time being the Further Amending Agreement is in force.

(2) This Further Amending Agreement shall, as between the Commonwealth and a State executing it, be deemed to have come into force on the 1st March 1992.

(3) Notwithstanding that in this Further Amending Agreement all of the States are named as parties, this Further Amending Agreement shall operate as an agreement between the Commonwealth and the party or parties in respect of which it comes into force as fully and effectually as if the party or parties in respect of which it comes into force were the only party or parties so named other than the Commonwealth.

(4) In the event that a State ceases to be a party, this Further Amending Agreement shall nevertheless continue in force with respect to the Commonwealth and the States which are parties when the cessation takes effect.

2. The amended Agreement is further amended by:—

(a) inserting into sub‑clause 3(1) the following definitions:

“broadacre crops” means cereals, coarse grains, oilseeds, peanuts and grain legumes; and

“sugar crops” means sugar and cane sugar;

(b) adding to paragraph 6 (1) (a) the words “including finance to establish for the year ending 31 December 1992 broadacre and sugar crops; and

(c) deleting the last sentence of sub‑clause 10 (2) and inserting in its place the following:

“Subsidies paid under this sub‑clause shall not exceed—

(a) as to those to establish broadacre and sugar crops—75%; and

(b) otherwise—50%,

of the interest payable on, and associated costs of, such loans and the State shall bear a third of the cost of the subsidies referred to in paragraph (b) out of its own funds.”

3. The amended Agreement is, save for the foregoing amendments, confirmed in all other respects.

IN WITNESS WHEREOF this Further Amending Agreement has been signed for and on behalf of the Parties as at the day and year first above written.

Schedule 4

SUPPLEMENTAL AGREEMENT WITH

THE AUSTRALIAN CAPITAL TERRITORY

Section 4C

THIS SUPPLEMENTAL AGREEMENT is made the day of

One thousand nine hundred and ninety two.

BETWEEN

the Commonwealth of Australia (“the Commonwealth”) of the one part; and

the Australian Capital Territory of the other part.

WHEREAS:

(A) the Commonwealth, all the States and the Northern Territory entered into an Agreement relating to rural adjustment dated variously of December 1988 and January 1989 (“the Agreement”);

(B) those parties have entered or are shortly to enter into an Amending Agreement and a Further Amending Agreement in relation to rural adjustment;

(C) assistance in relation to rural adjustment for the Australian Capital Territory has been provided by the Commonwealth hitherto without the government of the Australian Capital Territory being a party to the Agreement; and

(D) it is considered appropriate that the Australian Capital Territory become a party to the Agreement as amended and further amended by the Agreements referred to in Recital (B) (“the amended Agreement”).

NOW IT IS HEREBY AGREED as follows:

1. On and from the day of 1992, the Australian Capital Territory is to be a party to the amended Agreement.

2. In order that financial assistance be payable thereunder on and from the date specified in clause 1 of this Supplemental Agreement to the Australian Capital Territory by the Commonwealth there are to be inserted the words

(a) “and the Australian Capital Territory” in sub‑clauses 1(1) and 1(3) of the amended Agreement immediately after the words “of Australia”; and

(b) “or the Australian Capital Territory” in sub‑clause 3(1) of the amended Agreement after the word “State” in the definition of both “farm enterprise” and “farmer”.

3. The Australian Capital Territory agrees to use any financial assistance so provided by the Commonwealth in accordance with the terms and conditions set out therein.

4. The amended Agreement is, save for the foregoing, confirmed in all other respects.

IN WITNESS WHEREOF this Supplemental Agreement has been signed for and on behalf of the Parties as at the day and year first above written

Schedule 5

THIRD AMENDING AGREEMENT

THIS AGREEMENT is made the day of One Thousand nine hundred and ninety two

BETWEEN

THE COMMONWEALTH OF AUSTRALIA (in this Agreement called “the Commonwealth”) of the first part,

THE STATE OF NEW SOUTH WALES of the second part, and

THE STATE OF QUEENSLAND of the third part,

WHEREAS

(A) The States of New South Wales and Queensland are among the States parties to an Agreement with the Commonwealth dated variously of December 1988 and January 1989 as amended by the First Amending, the Second Amending and Supplemental Agreements dated 20 December 1991, 13 March 1992 and 26 June 1992 respectively, relating to rural adjustment (“the amended Agreement”); and

(B) It is desired to further amend the amended Agreement as between those two States and the Commonwealth in order to give effect to certain initiatives in favour of those in the rural sector who are suffering hardship by reason of drought in those two States.

NOW IT IS HEREBY AGREED as follows:

1.(1) This Third Amending Agreements shall, as between the Commonwealth and either the State of New South Wales or Queensland executing it, be deemed to have come into force on the 1st September 1992.

(2) Notwithstanding that in this Third Amending Agreement two States are named as parties, this third Amending Agreement shall operate as an agreement between the Commonwealth and either State in respect of which it comes into force as fully and effectually as if the State in respect of which it comes into force were the only party so named other than the Commonwealth.

(3) In the event that a State ceases to be a party, this Third Amending Agreement shall nevertheless continue in force with respect to the Commonwealth and the other State which is a party when the cessation takes effect.

2. The amended Agreements are amended by:

(a) adding to paragraph 6(1)(a) the words “and also in relation to drought, finance to acquire livestock, restructure debt and improve productivity for the ten months of the year ending 30 June 1993”;

(b) inserting into paragraph 10(2)(a) after the word “crops” the words “and in relation to drought under paragraph 6(1)(a)”; and

(c) adding in sub‑clause 10(2) the words “The State of New South Wales or Queensland may provide the remaining 25% of the subsidy in relation to drought in its State.”.

3. The amended Agreement is, save for the foregoing amendments, confirmed in all other respects.

IN WITNESS WHEREOF this Third Amending Agreement has been signed for and on behalf of the Parties as at the day and year first above written.

Notes to theStates Grants (Rural Adjustment) Act 1988

Note 1

The States Grants (Rural Adjustment) Act 1988 as shown in this compilation comprises Act No. 112, 1988 amended as indicated in the Tables below.

The States Grants (Rural Adjustment) Act 1988 was modified by the A.C.T. Self‑Government (Consequential Provisions) Regulations as amended (see Table A).

Table of Acts

Act

Number

and year

Date

of Assent

Date of commencement

Application, saving or transitional provisions

States and Northern Territory Grants (Rural Adjustment) Act 1988

112, 1988

12 Dec 1988

12 Dec 1988

States and Northern Territory Grants (Rural Adjustment) Amendment Act 1992

78, 1992

26 June 1992

Ss. 6, 7, 10(1), 11 and 12: 20 Dec 1991

Ss. 8, 10(2) and 13: 1 Mar 1992

Remainder: Royal Assent

States Grants (Rural Adjustment) Amendment Act 1992

239, 1992

24 Dec 1992

24 Dec 1992

S. 3

Table of Amendments

  1. ad. = added or inserted

    am. = amended rep. = repealed rs. = repealed and substituted

Provision affected

How affected

Title........................................

am. No. 78, 1992

S. 1.........................................

am. No. 78, 1992

Ss. 3, 4...................................

am. No. 78, 1992

Ss. 4A–4C..............................

ad. No. 78, 1992

S. 5.........................................

am. No. 78, 1992

Heading to Schedule .............

rep. No. 78, 1992

Heading to Schedule 1...........

ad. No. 78, 1992

Schedules 2–4.......................

ad. No. 78, 1992

Schedule 5.............................

ad. No. 239, 1992

Table A

Modifications

A.C.T. Self‑Government (Consequential Provisions) Regulations

Section 3 (definition of “State”):

After “includes” insert “the Australian Capital Territory and”.

Schedule:

  1. (a)

    omit “THE NORTHERN TERRITORY OF AUSTRALIA of the eighth part,”, substitute:

“THE AUSTRALIAN CAPITAL TERRITORY of the eighth part, THE NORTHERN TERRITORY OF AUSTRALIA of the ninth part,”;

  1. (b)

    after “Territory” in recital (C) insert “and to provide for the payment of financial assistance to the Australian Capital Territory”;

  2. (c)

    after “States” in recital (D) insert “, the Australian Capital Territory”;

  3. (d)

    after “each State” in subclause 1(1) insert “, the Australian Capital Territory”;

  4. (e)

    after “all of the States” in subclause 1(1) insert “, the Australian Capital Territory”;

  5. (f)

    after “Tasmania” in subclause 1(3) insert “and the Australian Capital Territory”;

  6. (g)

    after “State or” in the definitions of “farm enterprise” and “farmer” in subclause 3(1) insert “, in the Australian Capital Territory”.

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