Overview

The Farm Help Re-establishment Grant Scheme Amendment 2008 (No. 1) was enacted to formally conclude the Farm Help Program, which was identified for savings to help fund the Australia’s Farming Future policy initiative. This amendment to the Farm Household Support Act 1992, introduced by the Minister for Agriculture, Fisheries and Forestry, effectively sets new deadlines for the operation of the grant scheme. The policy objective is to ensure a structured winding down of the scheme by specifying dates for the cessation of applications, sale of farms, and payment requests. The changes were developed in consultation with relevant authorities, including the Attorney-General’s Department and Centrelink, to ensure compliance and smooth transition. The scheme will cease to have effect by the end of 30 June 2009, with corresponding amendments to application deadlines and operational timelines.

Scope and Application

The Farm Help Re-establishment Grant Scheme Amendment 2008 (No. 1) pertains to the Farm Help Re-establishment Grant Scheme, which was established under the Farm Household Support Act 1992. The Scheme aims to provide financial assistance, known as re-establishment grants, to eligible farmers who sell their farm enterprises or their rights and interests in such enterprises. The Amendment introduces changes to the original Scheme to formalise its conclusion, in line with the Farm Help Program's winding down to fund the Australia's Farming Future policy initiative. The Scheme applies to individuals who seek financial assistance from the re-establishment grant and requires them to obtain advice and undergo a financial assessment before they can qualify for a grant. The Scheme will cease to have effect on 30 June 2009, and applications can no longer be made after 30 June 2008. The Amendment also sets new deadlines for the sale of the farm and the request for payment of the grant, with the former set for 31 March 2009 and the latter for 30 April 2009. The changes are intended to streamline the process and ensure that the Scheme operates within the specified timeframe.

Key Provisions

The Farm Help Re-establishment Grant Scheme Amendment 2008 (No. 1) (the "Amendment") introduces several key changes to the Farm Help Re-establishment Grant Scheme 1997 (the "Scheme"). The Amendment, which came into effect on 30 June 2008, modifies the Scheme to bring it in line with the conclusion of the Farm Help Program, which was identified for savings to fund the Australia's Farming Future policy initiative. Section 2.2 of the Amendment specifies that applications for the grant can no longer be made after 30 June 2008. Section 3.2(1)(baa) sets the new deadline for selling the farm at the end of 31 March 2009. Section 3.3 outlines the new deadline for requesting payment of the grant, which is the end of 30 April 2009. Additionally, Section 3.6, and its subsections, have been amended to reflect the new end date of 30 June 2009, the date when the Scheme will cease to have effect. Under the Amendment, there are specific obligations and requirements for parties governed by the Scheme. Applicants for the re-establishment grant must obtain advice under the Farm Help Advice and Training Scheme before applying for the grant. They are also required to undertake a financial assessment and develop an action plan. These requirements ensure that applicants are well-informed and prepared before they can qualify for and claim the re-establishment grant. Additionally, applicants must ensure that their farms are sold by the new deadline set by the Amendment, which is the end of 31 March 2009, to remain eligible for the grant. The Amendment also imposes several consequences for non-compliance with its provisions. The most notable consequences are tied to the deadlines set out in the Scheme. For instance, if an application for the grant is submitted after the deadline of 30 June 2008, it will not be considered. Similarly, if the farm is not sold by the end of 31 March 2009, or if the request for payment of the grant is not made by the end of 30 April 2009, the applicant may lose their eligibility for the grant. Although the Amendment does not specify penalties for non-compliance, failure to adhere to the deadlines could result in the applicant losing their entitlement to the re-establishment grant. This could have significant financial implications for the affected farmers.