Dairy Exit Program Scheme Amendment 2001 (No. 2)

Dairy Exit Program Scheme Amendment 2001 (No. 2)

I, WARREN ERROL TRUSS, Minister for Agriculture, Fisheries and Forestry, make this instrument under subsection 52C (1) of the Farm Household Support Act 1992.

Dated         23   August 2001

WARREN TRUSS

Minister for Agriculture, Fisheries and Forestry

Contents

1                     Name of instrument

This  instrument  is  the  Dairy  Exit  Program  Scheme Amendment 2001 (No. 2).

2 Commencement

This instrument commences, or is taken to have commenced, as follows:

(a) on 27 March 2001 — section 1 to 3, and Schedule 1;

(b) on gazettal — Schedule 2.

3 Amendment of Dairy Exit Program Scheme 2000

Schedules 1 and 2 amend the Dairy Exit Program Scheme 2000.

[1] Section 6

substitue

6 Who is qualified to apply for a dairy exit payment

(1) A person is qualified to apply for a dairy exit payment for a farm enterprise that is, or is part of, a dairy farm enterprise if:

(a) the person:

(i) is an individual; and

(ii) is a farmer; and

(iii) is at least 18; and

(iv) is an Australian resident; and

(v) is in Australia; and

(b) the person has been a farmer in relation to the farm enterprise for a continuous period of at least 2 years immediately before the application is lodged; and

(c) the person is effectively in control of  the person’s rights or interests in the farm enterprise; and

(d) a certificate of inability to obtain finance issued for the person is in effect; and

(e) the person has been granted a payment right under the DSAP scheme.

(2) Also, a person is qualified for a dairy exit program for a farm enterprise that on 28 September 1999 was, or was part of, a dairy Farm enterprise if:

(a) the person:

(i) is an individual; and

(ii) was a farmer on 28 September 1999; and

(iii) is at least 18; and

(iv) is an Australian resident; and

(v) is in Australia; and

(b) the person has been granted a payment right under the DSAP  scheme; and

(c) the person’s rights or interests in the farm enterprise have been sold   (and   completion  of   the     sale has  taken     place)   after  28  September  1999 and  before the  person was  granted a payment right under the DSAP Scheme; and  

(d) the person was a farmer in relation to the farm enterprise for a continuous  period of  at least 2  years  immediately  before  the sale; and

(e) the person was effectively in control of the person’s rights or interests in the farm enterprise immediately before the sale.

Note Paragraphs 9 (1) (f) and (g) provide that the person who has a partner will not qualify for a dairy exit payment if:

(a) the person or partner  has received a dairy exit payment; or

(b) the partner has applied for a dairy exit payment, and the  partner has not withdraw that application or that application has not been rejected.

[2] Subsection 9 (1), and the note

substitue

(1) A person is qualified to claim a dairy exit payment for a farm enterprise, for which an application has been loged under part 2, in relation to a dairy farm enterprise if the following conditions are satisfied:

(a) the person’s application for  the  payment  has  been  accepted under  Part 2;

(b) the person’s rights or interests in the farm enterprise have been sold (and completion of the sale has taken place):

(i) if  the  person was qualified to apply for  the  payment  under subsection 6 (1), within 12 months, or sunch longer period   as   the   Minister,  in  writing,  allows  under  section 9A, after the application was lodged; and

(ii) if the person  was  qualified  to  apply  for the payment under    subsection   6 (2),  as    mentioned    in    paragraph  6   (2)  (c); 

(c) immediately  before  the sale,  the  person  was   effectively  in control of the person’s rights or interests in the farm enterprise;

(d) the sale was on commercial terms and at arm’s length;

(e) the value of the person’s assets is less than $167 500;

(f) the person and, if the person has a  partner,  the person’s  partner have not previously received a dairy exit payment under this Scheme;

(g) if the person has  a partner  who has applied for a  dairy   exit payment:

(i) the partner has withdrawn that application; or

(ii) the application has been rejected;

(h) the person has not previously received:

(i)  a grant under the Rural Adjustment Scheme within the meaning of the Rural Adjustment Act 1992; or

(ii)  a re-establishment grant;

(i) if the person has applied for a grant mentioned in  subparagraph (h) (i):

(i) the person has withdrawn that application; or

(ii) the application has been rejected;

(j) if the person has asked to be paid a re-establishment grant:

(i) the person has withdrawn that request; or

(ii) the request has been rejected;

(k) the person  has  complied  with  any  activity  plan  direction given  to  the  person  under  section    13B of  the  Act  or  Division  3 of Part 2 of the Farm Help Re-establishment Grant Scheme 1997;

(l)  if  the  person is  the registered owner of  1 or more units in a payment  right  granted to  the  person   under    the  DSAP  scheme — all of those units are unencumbered;

(m) if the person  has a  partner  who is the  registered  owner  of 1 or more units in a payment  right granted  to  the   partner  under   the  DSAP  scheme — all of those units are unencumbered;

(n) the person and, if the person has a partner, the person’s partner:

(i) are not farm owners or operators; and

(ii)  do not own any farm  plant or machinery, farm livestock or other   assets   essential   for   the  effective  running  of  a  farm  enterprise;

(o) the  person agrees,  in  writing, with the  Secretary  that,  if  the person becomes a farm owner or operator within 5 years after making  the  agreement,  the   amount of  dairy  exit   payment (if any)  paid  to the  person  may  be   recovered   by the Commonwealth,   on   behalf  of   the    Australian   Dairy Corporation, as a debt due to the  Australian  Dairy  Corporation;

(p) if the person has a partner  who is  the  registered owner of  1 or  more units in a payment right  granted to  the  partner under the  DSAP  scheme —  the  partner  agrees, in  writing,  with the Secretary that, if the partner becomes a farm owner or operator within 5 years after  making  the  agreement, the  amount of dairy exit  payment  (if any) paid to the partner may be recovered by  the Commonwealth,  on  behalf  of the  the  Australian Dairy Corporation, as a debt due to the Australian Dairy Corporation.

Note A dairy exit payment is not payable to a person in respect of a sale that is completed after 30 June 2003 — see paragraph 52C (3) (b) of the Act.

[1] Section 3, definition of register

substitute

registered owner, of a unit in a payment right granted under the DSAP scheme or the SDA scheme, means the entity recorded as the owner of the unit on the register kept under section 33 of the DSAP scheme.

SDA payment has the same meaning as in Schedule 2 to the Dairy Act.

SDA scheme has the same meaning as in Schedule 2 to the Dairy   Act.

[2] Subsection 15 (4), formula

substitute

$45 000 – DSAP – FHIS – SDA

[3] Subsection 15 (4), after definition of FHIS

insert

SDA is the sum of:

(a)  the total amount of any SDA payments paid to the person for units:

(i)  in a payment right granted to the person under the SDA scheme; and

(ii)  the  ownership  of  which  had  not been transferred before the  Secretary decided under Part 3 that the person is qualified for the dairy exit payment; and

(b)  if, before the Secretary decided under Part 3 that the person is qualified for the dairy exit payment, the person transferred to someone else  (including  the  person’s  partner)  his or her ownership of 1 or more units in a payment  right granted to the person  under  the   SDA   scheme  —   $32   multiplied by the number of those units; and

(c)  the total amount of any SDA payments  paid  to   the  person’s partner for units:

(i) in a payment right  granted to the  partner under the  SDA scheme; and

(ii) the  ownership  of   which  had not  been   transferred  before the Secretary decided under Part 3  that  the  partner is qualified for the dairy exit payment; and

(d) if, before the Secretary decided under Part 3 that the  person’s partner is qualified for the dairy  exit payment, the partner transferred to someone else (including the person) his or her ownership of 1 or more units in a payment right granted to the partner  under the  SDA   scheme  —   $32   multiplied  by the number of those units.

[4] Subsection 15 (5), formula

substitute

$45 000 – 2/3(A – $100 000) – DSAP – FHIS – SDA

[5] Subsection 15 (5), definitions of  DSAP and FHIS

substitute

DSAP has the same meaning as in subsection (4).

FHIS has the same meaning as in subsection (4).

SDA has the same meaning as in subsection (4).

[6] Subsection 15 (6)

after

DSAP

insert

or SDA

[7] After subparagraph 17 (1) (a) (i)

insert

(ia) the SDA scheme; or

[8] Subparagraph 17 (1) (a) (ii)

omit

that scheme;

insert

either of those schemes;

[9] Further amendments