Overview

The Farm Help Re-establishment Grant Scheme Amendment 2007 (No.2) was enacted to address gaps in the original Farm Help Re-establishment Grant Scheme under the Farm Household Support Act 1992. This scheme, which was bolstered by an additional $92.3 million over four years in the 2007 Budget, aims to provide financial assistance to eligible farmers when they sell their farm enterprises or their rights or interests in such enterprises. The 2007 amendments were designed to enhance the scheme's accessibility and effectiveness by allowing previous Farm Help recipients a second opportunity to access professional advice and training and by increasing the re-establishment grant amount to $75,000. The amendments also ensure consistency with other government assistance grants and adjust the non-return-to-farming period from ten years to five years, aligning with the requirements set out in the Farm Household Support Act 1992. The changes were introduced by the Australian Government, with the objective of improving the scheme's functionality and accessibility for farmers in need. The amendments to the Farm Help Re-establishment Grant Scheme 1997 were formulated to ensure that recipients adhere to specific conditions, such as obtaining advice and training, and to prevent tobacco farmers who have already received restructuring grants from applying for re-establishment grants. This legislative adjustment aims to streamline the support provided to farmers, ensuring that the Farm Help programme remains a viable and effective resource for those in the agricultural sector.

Scope and Application

The Farm Help Re-establishment Grant Scheme Amendment 2007 (No.2) amends the Farm Help Re-establishment Grant Scheme 1997, providing financial assistance to eligible farmers on the sale of their farm enterprises. This Act applies to individuals who are eligible to apply for a re-establishment grant, specifically those who have sold their farm enterprises, their rights or interests in such enterprises. The legislation also mandates that applicants obtain advice under the Farm Help Advice and Training Scheme and undergo a financial assessment before qualifying for the grant. The scheme is a Commonwealth initiative, thus its reach extends nationally. Notably, the amendments exclude tobacco farmers who have received restructuring grants under the Tobacco Grower Adjustment Assistance Package 2006 from applying for a re-establishment grant. Additionally, the amendments revert the period that recipients must refrain from returning to farming from ten years back to five years, aligning with the Farm Household Support Act 1992. The instrument will commence the day after its registration, with further details and specific provisions outlined in Schedule 1 of the amendments.

Key Provisions

The Farm Help Re-establishment Grant Scheme Amendment 2007 (No.2) (the "Amendment") introduces several key provisions. Section 3.2(1)(da) modifies the requirement that applicants for a re-establishment grant must provide a written acknowledgment that they will not return to farming as an owner, operator, or leaseholder for five years from the date of acknowledgment (Schedule 1, item 1). This change is necessary to align with the five-year requirement stipulated in the Farm Household Support Act 1992. Similarly, Schedule 1, item 3, revises the timeframe for forfeiture of re-establishment grant payments to five years, ensuring consistency with the Act and penalising those who return to farming within this period. Furthermore, Schedule 1, item 2, introduces a prohibition for tobacco farmers who have already received a restructuring grant under the Tobacco Grower Adjustment Assistance Package 2006 from applying for a re-establishment grant. The Amendment imposes several obligations on parties involved in the Farm Help Re-establishment Grant Scheme. Firstly, applicants must provide a written acknowledgment that they will not engage in farming activities within five years of acknowledgment (Schedule 1, item 1). This acknowledgment is a prerequisite for eligibility for the grant. Secondly, applicants must comply with the financial assessment and pathways plan requirements established under the Farm Help Advice and Training Scheme. Failure to undertake these assessments or develop the required plan will render the applicant ineligible for the grant. Thirdly, recipients of the re-establishment grant must adhere to the five-year non-farming stipulation; any violation of this condition will result in the forfeiture of the grant amount (Schedule 1, item 3). Breach of the provisions set forth in the Amendment can lead to significant consequences. Schedule 1, item 3, stipulates that any recipient who becomes a farm owner, operator, or leaseholder within five years of receiving the grant will forfeit the amount paid. This forfeiture serves as a deterrent against premature re-entry into farming activities, ensuring the grant's intended purpose is upheld. Additionally, Schedule 1, item 2, excludes tobacco farmers who have received a restructuring grant from the Tobacco Grower Adjustment Assistance Package 2006 from applying for a re-establishment grant, preventing potential overlaps and misuse of government assistance. There are no explicit penalties outlined for these breaches, but the forfeiture of grant payments acts as a substantial penalty for non-compliance.