Farm Household Support Amendment Regulations 2004 (No. 1)

Administered by Department of Agriculture

Legislation au F2004B00221 Regulations Not in force Legislative Instrument

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Farm Household Support Amendment Regulations 2004 (No. 1) 2004 No. 206

EXPLANATORY STATEMENT

Statutory Rules 2004 No. 206

Issued by the Authority of the Minister for Agriculture, Fisheries and Forestry

Farm Household Support Act 1992

Farm Household Support Amendment Regulations 2004 (No. 1)

The Farm Household Support Act 1992 (the Act) establishes the Farm Help Income Support programme and enables the Farm Help Advice and Training Scheme and the Farm Help Re-establishment Grant Scheme. These schemes are designed to grant financial assistance to eligible farmers to obtain advice on their financial outlook and seek further advice and training and provide financial assistance on the sale of their farm enterprises.

Subsection 58(1) of the Act provides that the Governor-General may make regulations prescribing all matters required or permitted by the Act to be prescribed, or necessary and convenient to be prescribed for carrying out or giving effect to the Act.

The Act is amended by the Farm Household Support Amendment Act 2004, with effect from 1 July 2004, to extend the operation of the schemes until the end of June 2008, and to make other refinements to the schemes.

Subparagraph 8B(1)(d)(i) of the Act provides that to be a qualified person for Farm Help income support a person must obtain advice from a prescribed adviser that there is no reasonable likelihood, immediately before the period begins, that the person would obtain a loan from a financial institution given the person's financial situation. Paragraph 8B(1)(e) requires a person to obtain advice from a prescribed adviser on whether there is a reasonable likelihood of improving the financial performance of the farm enterprise.

The purpose of the Regulations is to prescribe who a qualified farmer can obtain access advice on financial outlook from, for the purposes of establishing eligibility for Farm Help income support under subsection 813(1) of the Act.

The Regulations specify the qualifications required of a person who provides advice on financial outlook for the purposes of subsection 813(1) of the Act. These qualifications are broader for a person providing advice to applicants who, due to the remoteness of their location, have difficulty accessing this type of advice.

The Regulations reflect the decision by the Government to replace the bank certificate of inability to obtain further finance with an alternate means of determining a farmer's inability to obtain further finance. The Regulations would make allowance for farmers who would otherwise be disadvantaged due to their remote location.

The Regulations update the name of the Farm Household Support Regulations in line with current drafting practice.

The detail of the Regulations is set out in Attachment A.

The Act specifies no conditions that need to be met before the power to make the proposed Regulations may be exercised.

The Regulation commenced on 1 July 2004, to coincide with the commencement of the amendments to the Act.

Attachment A

Farm Household Support Amendment Regulations 2004 (No. 1)

Section 1       Name of Regulations

This Section states that the Regulation is called the Farm Household Support Amendment Regulations 2004 (No. 1).

Section 2       Commencement

This Section provides for the Regulation to commence on 1 July 2004.

Section 3       Amendment of Farm Household Support Regulations

This Section provides that Schedule 1 amends the Farm Household Support Regulations.

Schedule 1       Amendments

[1]       Regulation 1

The Regulation substitutes the name of the Regulations in Regulation 1, to the Farm Household Support Regulations 1993.

[2]       After Regulation 4

This item inserts Regulation 5 which refers to a prescribed adviser for the Farm Household Support Act 1992 subparagraph 8B (1) d (i) and paragraph 8B (1) (e).

In subregulation (1) a prescribed adviser is a person who has relevant financial qualifications and is a member of a professional association whose members normally provide financial advice. An eligible person is required to access the prescribed adviser enabled in subregulation (1) if they are able to access this adviser due to the person's location, prior to accessing the prescribed adviser enabled in subregulation (2). The prescribed adviser would assess the likelihood of a person obtaining a loan from a finance institution given the person's financial situation and provide advice on the reasonable likelihood of improving the financial performance of the farm enterprise.

In subregulation (2) an exception is made for an eligible farmer who is unable to access a prescribed person who has relevant financial qualifications and is a member of a professional association whose members normally provide financial advice, due to their remoteness and lack of access. In this instance, an eligible farmer may access a prescribed person who has experience in financial matters because of his or her occupation, whether or not this person normally provides or provided this advice. The intention of subregulation (2) is to ensure that no farmer is disadvantaged from entry to the Farm Help program due to remoteness and lack of access.

Subregulation (3) details examples of occupations that give a person experience in financial matters for paragraph 2 (a) to demonstrate that a broad range of occupations are relevant and can assess the likelihood of a person obtaining a loan from a finance institution given the person's financial situation and provide advice on the reasonable likelihood of improving the financial performance of the farm enterprise. The examples listed are not an exhaustive compilation.

Overview

The Farm Household Support Amendment Regulations 2004 (No. 1) were introduced to amend the existing Farm Household Support Regulations 1993, aligning them with the updates to the Farm Household Support Act 1992. The purpose of these regulations is to prescribe who qualified farmers can obtain advice from regarding their financial outlook, which is essential for establishing eligibility for Farm Help income support under the Act. These amendments were made by the Australian Government, specifically through the Minister for Agriculture, Fisheries and Forestry, to ensure that farmers, particularly those in remote areas, have access to necessary financial advice. The overarching policy objective is to provide financial assistance and advice to eligible farmers, ensuring that no farmer is disadvantaged due to remoteness or lack of access to professional financial advice. The regulations commenced on 1 July 2004 to coincide with the amendments to the Act, ensuring a seamless transition and continued support for farmers during this period.

Scope and Application

The Farm Household Support Amendment Regulations 2004 (No. 1) primarily applies to farmers seeking assistance under the Farm Household Support Act 1992, ensuring that these individuals can access the support they need to improve their financial outlook and the performance of their farm enterprises. The regulations pertain to both eligible persons who can readily access prescribed advisers and those in remote areas who may not have easy access to such professionals. This inclusive approach is designed to ensure that geographical barriers do not prevent farmers from obtaining the necessary financial advice and support. The regulations extend their application across the Commonwealth of Australia, providing a consistent framework for all eligible farmers regardless of their location. However, they do not specify any exclusions or exemptions, nor do they set particular thresholds for eligibility. The regulations also allow for further refinement and specification through subordinate instruments, ensuring that the framework remains adaptable to changing needs and circumstances.

Key Provisions

The Farm Household Support Amendment Regulations 2004 (No. 1) are a set of regulations under the Farm Household Support Act 1992, designed to update and refine the provisions governing the Farm Help Income Support programme, the Farm Help Advice and Training Scheme, and the Farm Help Re-establishment Grant Scheme. These amendments came into effect on 1 July 2004, and include updates to the names of the regulations, the extension of the schemes' operations until the end of June 2008, and the specification of qualifications for financial advisers who can provide advice to farmers seeking income support. These regulations also address the issue of remoteness by allowing farmers who cannot access qualified financial advisers due to their location to seek advice from individuals with relevant financial experience. The regulations impose specific obligations on parties involved in the Farm Help programme. Under the new regulations, eligible farmers must access a prescribed adviser for financial advice if they can, based on their location. A prescribed adviser is defined as a person with relevant financial qualifications and membership in a professional association that typically provides financial advice. If a farmer is unable to access such a qualified adviser due to remoteness, they may seek advice from a person with experience in financial matters, regardless of whether they normally provide such advice. These advisers must assess the farmer's likelihood of obtaining a loan from a financial institution and provide advice on the reasonable likelihood of improving the farm's financial performance. Failure to comply with the regulations may result in penalties or other consequences. Although the specific penalties are not detailed in the explanatory statement, under the Farm Household Support Act 1992, breaches of regulations can lead to civil or criminal penalties. Civil penalties may include fines, while criminal penalties may involve imprisonment or substantial fines, depending on the severity of the breach. These penalties serve to ensure compliance with the regulations and to maintain the integrity of the Farm Help programme. The regulations ensure that all farmers have access to the necessary financial advice to be eligible for support, and that those who provide such advice meet certain qualifications or have relevant experience.

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