EXPLANATORY STATEMENT
Select Legislative Instrument 2005 No. 68
Issued by the Authority of the Minister for Agriculture, Fisheries and Forestry
Farm Household Support Act 1992
Farm Household Support Amendment Regulations 2005 (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.
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 Regulations introduce a note after subregulation 5(1) to define the type of qualifications a person should hold for the purpose of providing the advice as specified in subsection 8B(1). The note specifies that a person can obtain relevant financial qualifications by completing a course of post-secondary study that is relevant to giving financial advice and recognised by a professional association whose members normally give financial advice.
The proposed Regulations would be a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation was undertaken with the Standing Committee on Regulations and Ordinances, the Attorney General’s Department (Office of Legislative Drafting), the Office of Regulation Review and Centrelink during the development of this note.
Overview
The Farm Household Support Amendment Regulations 2005 (No. 1) were enacted to provide further clarity and specificity regarding the qualifications of advisers under the Farm Household Support Act 1992. This legislation, introduced by the Australian Parliament, was designed to address the need for qualified financial advice for farmers seeking support through the Farm Help Income Support programme. The policy objective is to ensure that farmers receive reliable and expert advice to improve their financial performance and decision-making. The regulations specifically add a note defining the qualifications necessary for advisers to provide the required financial advice, emphasising the importance of relevant post-secondary education recognised by professional financial associations.
The enactment of these regulations aims to support the integrity and effectiveness of the financial advice provided to farmers, ensuring that they are well-informed and capable of making sound financial decisions. By clarifying the qualifications of advisers, the Farm Household Support Amendment Regulations 2005 (No. 1) enhance the overall framework established by the Farm Household Support Act 1992, thereby better serving the needs of the farming community.
Scope and Application
The Farm Household Support Act 1992 applies to farmers who are seeking financial assistance through the Farm Help Income Support programme, as well as to those who wish to participate in the Farm Help Advice and Training Scheme and the Farm Help Re-establishment Grant Scheme. These schemes are specifically designed to offer financial aid to eligible farmers to obtain advice on their financial outlook, seek further advice and training, and receive financial assistance for the sale of their farm enterprises. The Act, therefore, targets individuals engaged in farming who are in need of financial and advisory support to manage and sustain their agricultural operations. The geographic reach of the Act extends to the entire Commonwealth of Australia, providing a national framework for the support of farm households. The Act allows for the creation of regulations that prescribe matters necessary for its implementation, and the Farm Household Support Amendment Regulations 2005 (No. 1) further define qualifications for individuals providing financial advice under the Act. These regulations are subordinate instruments that extend the application of the Act by detailing specific requirements for the schemes it establishes.
Key Provisions
The Farm Household Support Amendment Regulations 2005 (No. 1) primarily amend the Farm Household Support Act 1992 by introducing new qualifications for persons providing financial advice to farmers seeking support under the Act. Section 5 of the Regulations details the new qualifications for advisers. Specifically, these advisers must now hold qualifications obtained through a recognised course of post-secondary study relevant to financial advice, as stated in the note added after subregulation 5(1). This addition ensures that only suitably qualified individuals can provide the necessary financial advice to farmers applying for support under the Farm Help Income Support programme.
Entities and individuals governed by the Act must comply with the new requirements for financial advisers outlined in the Regulations. For example, farmers seeking income support must obtain advice from a qualified person as defined by the note added to subregulation 5(1). This means they must ensure their adviser has completed relevant post-secondary study recognised by a professional association. Failure to comply with these stipulations could render the advice invalid, potentially impacting the farmer's eligibility for support under the Act.
The Act and the Regulations do not explicitly state offences or penalties for non-compliance with the new adviser qualification requirements. However, any breach of the conditions for eligibility for financial support could result in the farmer not qualifying for the income support or other benefits provided by the schemes. In such cases, the consequences would be the denial of the support, which could significantly impact the farmer's financial stability. It is important for all parties to adhere to the stipulated qualifications to avoid any adverse outcomes.