EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Agriculture, Fisheries and Forestry
FARM HELP RE-ESTABLISHMENT GRANT SCHEME AMENDMENT 2005 (No. 2)
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Subsection 52A(1) of the Farm Household Support Act 1992 provides that the Minister may, by written instrument, formulate a Scheme to be called the Farm Help Re-establishment Grant Scheme, to grant financial assistance to eligible farmers on the sale of their farm enterprises, or their rights or interests in farm enterprises. Such a grant is called a Re-establishment Grant.
This Scheme is related to the Scheme formulated under section 52B(1) of the Farm Household Support Act 1992 (the Farm Help Advice and Training Scheme 1997). A person who applies for a benefit under the Farm Help Re-establishment Grant Scheme is required to obtain advice under the Farm Help Advice and Training Scheme and will be granted assistance to obtain that advice. The person is required to undertake a financial assessment and develop an activity (pathways) plan before qualifying and being eligible to claim a Re‑establishment grant.
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Amendments to the Farm Help Re-establishment Grant Scheme 1997 are to ensure that the qualification provisions and discretion criteria for this part of the Farm Help programme will be interpreted in the same way as those for Farm Help income support under the Farm Household Support Act 1992.
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The Office of Legislative Drafting and Publishing and Centrelink were consulted in the development of these amendments. Consultation was not undertaken in relation to section 17 of the Legislative Instruments Act 2003, on the basis that these amendments are not likely to have an effect on business, and it is not possible to identify individual farmers to undertake specific or direct consultation.
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FARM HELP RE-ESTABLISHMENT GRANT SCHEME AMENDMENT 2005 (No. 2)
Section 1 Name of Scheme
This Section states that the instrument is called the Farm Help Re-establishment Grant Scheme Amendment 2005 (No. 2).
Section 2 Commencement
This item refers to the Scheme’s commencement date as the day after it is registered.
Section 3 Amendment of Farm Help Re-establishment Grant Scheme 1997
This Section provides that Schedule 1 amends the Farm Help Re-establishment Grant Scheme 1997.
SCHEDULE 1 AMENDMENTS
Item 1
This item repeals the previous reference to the ministerial discretion under clause 2.1 (5A), and inserts reference to the ministerial discretion under paragraph 8B (1A) (a), (b), (c), or (d) of the Farm Household Support Act 1992.
A person who does not meet the 50% income test is, nevertheless, taken to satisfy 2.1 (3) (b),
if the Secretary determines in writing, that the person’s gross income from the farm enterprise during the 2-year qualification period, is significantly diminished due to a named circumstance in paragraph 8B (1A) (a), (b), (c) or (d) of the Act.
This amendment will ensure a consistent interpretation of the qualification provisions for entry to the Farm Help programme and a consistent interpretation of the ministerial discretion that can apply. The change also maintains the policy intent of the discretion clause; that a named event must be so significant that it has prevented the farmer from earning the majority of their gross income from the farm enterprise.