EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Agriculture, Fisheries and Forestry
FARM HELP RE-ESTABLISHMENT GRANT SCHEME AMENDMENT 2007 (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 52A (1) of the Farm Household Support Act 1992 (the Farm Help Re-establishment Grant Scheme). 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 a pathways plan before qualifying and being eligible to claim a re‑establishment grant.
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The Farm Help programme was provided with an additional $92.3 million over the next four years in the 2007 Budget. Amendments to the Farm Household Support Regulations 1993, the Farm Help Advice and Training Scheme 1997 and the Farm Help Re-establishment Grant Scheme 1997 were made in June 2007 to improve access to the programme by allowing previous Farm Help recipients a second chance to obtain professional advice and training and to access an increased re-establishment grant of $75,000.
The proposed amendments allow for consistency in how other Government assistance grants are treated and reverts the undertaking by Re-establishment Grant recipients not to return to farming from ten years back to 5 years. This reversion is necessary to remain consistent with the Farm Household Support Act 1992 which is maintaining the 5 year requirement.
Farm Help Re-establishment Grant Scheme Amendment 2007 (No.2)
Section 1 Name of Scheme
This Section states that the instrument is called the Farm Help Re-establishment Grant Scheme Amendment 2007 (No.2).
Section 2 Commencement
This Section provides for the instrument to commence 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
[1] Paragraph 3.2(1)(da)
This item has been amended to revert back to 5 years the requirement that persons applying for a re‑establishment grant give a written acknowledgement not to return to farming as an owner, operator or leaseholder within 5 years after the date of the acknowledgement.
[2] After subparagraph 3.2(1)(g)(iv)
This item prevents tobacco farmers that have received a restructuring grant under the Tobacco Grower Adjustment Assistance Package 2006 from applying for a re‑establishment grant.
[3] Subsection 3.9(3)
This item has been amended to revert back to 5 years the requirement that that the amount paid as a re‑establishment grant is forfeited if the person becomes a farm owner, operator or a leaseholder of land used for a farm enterprise within 5 years after the date of the acknowledgement.