Dairy Exit Program Scheme Amendment 2000 (No. 2)

Overview

The Dairy Exit Program Scheme Amendment 2000 (No. 2) was enacted to refine and adjust the criteria for eligibility under the Dairy Exit Program Scheme 2000. This legislative instrument, made under subsection 52C (1) of the Farm Household Support Act 1992 by Warren Truss, the Minister for Agriculture, Fisheries and Forestry, aims to address specific eligibility conditions and clarify the process for dairy farmers seeking to exit the industry. The amendments were designed to ensure that only those who meet stringent criteria, such as being an individual Australian resident who was a farmer at a specific date and has had their rights or interests in the farm enterprise sold, are eligible for payments. This legislative change was an effort to streamline the program and ensure that payments are directed to those who are genuinely in need and meet the outlined conditions.

Scope and Application

The Dairy Exit Program Scheme Amendment 2000 (No. 2) is a legislative instrument that amends the existing Dairy Exit Program Scheme 2000. This instrument applies to individuals who were farmers on 28 September 1999, are at least 18 years old, are Australian residents, and are currently in Australia. The amendment specifically targets those who have sold their rights or interests in a dairy farm enterprise after 28 September 1999 and before being granted a payment right under the Dairy Support Adjustment Payment (DSAP) scheme. The sale must have been completed, and the individual must have been effectively in control of their rights or interests in the farm enterprise immediately before the sale. Furthermore, the individual must have been a farmer in relation to the farm enterprise for a continuous period of at least two years immediately before the sale. This legislative instrument has a national reach and applies across all jurisdictions in Australia. The amendments outlined in Schedule 1 are the primary modifications to the existing scheme, and any further extensions or restrictions of application are to be managed through subordinate instruments as needed. There are specific exclusions, such as individuals who have already received a dairy exit payment or whose partners have applied for such a payment without withdrawing or having it rejected. The instrument aims to refine the eligibility criteria for the dairy exit program to ensure it is targeted appropriately.

Key Provisions

The Dairy Exit Program Scheme Amendment 2000 (No. 2) primarily amends the Dairy Exit Program Scheme 2000 to refine the eligibility criteria for dairy exit payments. Section 6 of the amended scheme specifies that an individual qualifies for a dairy exit payment if they were a farmer on 28 September 1999, are at least 18 years old, are an Australian resident, and were in Australia at the time of the sale of their farm enterprise. Additionally, the individual must have been granted a payment right under the Dairy Support Adjustment Payment (DSAP) scheme, and their rights or interests in the farm enterprise must have been sold after 28 September 1999 but before they were granted a payment right under the DSAP scheme. They must also have been a farmer for at least two continuous years immediately before the sale and must have been effectively in control of their rights or interests in the farm enterprise before the sale. The amended scheme imposes specific obligations on eligible individuals seeking dairy exit payments. These include proving their identity, their status as a farmer on 28 September 1999, their continuous farming period, and the completion of the sale of their farm enterprise before being granted a payment right under the DSAP scheme. Furthermore, the individual must demonstrate that they were effectively in control of their farm enterprise rights or interests immediately before the sale. The scheme also stipulates that an individual will not qualify for a dairy exit payment if they or their partner have previously received a dairy exit payment or if their partner has applied for a dairy exit payment and has not withdrawn that application or had it rejected. Under the amended scheme, there are severe consequences for those who fail to comply with the requirements. The primary offences relate to making false or misleading statements in an application for a dairy exit payment. If an individual knowingly makes such a statement, they can face criminal penalties. The maximum penalty for an individual is generally a fine of up to 100 penalty units, while for a body corporate, the penalty can be up to 500 penalty units. Additionally, any financial benefit derived from the false or misleading statement can be subject to recovery by the Commissioner of Taxation. These provisions are designed to ensure that the scheme operates fairly and that payments are made only to those who genuinely qualify under the amended criteria.