EXPLANATORY STATEMENT
Select Legislative Instrument 2006 No. 205
Issued by Authority of the Minister for Agriculture, Fisheries and Forestry
Farm Household Support Act 1992
Farm Household Support Amendment Regulations 2006 (No. 1)
Section 58 of the Farm Household Support Act 1992 (the Act) provides, in part, that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Through Exceptional Circumstances Relief Payments, the Government provides fortnightly income support to farmers in Exceptional Circumstances declared regions or industries experiencing a severe and prolonged downturn in farm income due to a rare and severe climatic event, such as drought. This targeted assistance is intended to help eligible farmers with their everyday living expenses, while ensuring that farmers with long-term prospects for viability will not be forced off their land due to short-term adverse events that are beyond their capacity to manage.
Section 24A(4) of the Act provides for $10,000 in off-farm salary and wages to be disregarded from a person’s income for the purposes of calculating a rate of Exceptional Circumstances Relief Payment; or if the person is a member of a couple, to be disregarded from the income of the person and the person’s partner for the purposes of calculating a rate of Exceptional Circumstances Relief Payment, until 30 June 2006. Paragraph 24A(4)(b) of the Act provides that a later closing day for the cessation of the off-farm salary and wages exemption may be prescribed.
The Regulations prescribe a later closing date for the off-farm salary and wages exemption, through Regulation 6 of the Farm Household Support Regulations 1993:
Exceptional circumstances relief payment – closing date (Act s 24A)
For paragraph 24A(4)(b) of the Act, the closing date is 30 June 2008.
The decision to prescribe a later closing date for the off-farm salary and wages exemption was agreed by Government on 11 July 2006. The Minister for Agriculture, Fisheries and Forestry, the Hon Peter McGauran MP, announced on 14 July 2006 that the off-farm salary and wages exemption would be continued from 30 June 2006. This followed an extensive review process and consultation with other Government departments, including the Departments of the Prime Minister and Cabinet; Finance and Administration; Treasury; Families, Community Services and Indigenous Affairs; Human Services; Employment and Workplace Relations; Transport and Regional Services; Education, Science and Training; and ongoing consultation with Centrelink. The closing date specified in the Regulations was agreed by Government on 18 July 2006.
The Government agreed to a later closing date in recognition of the extreme severity and extent of drought conditions; the need for government support; and the importance of off-farm income as a farm management tool during drought. The extension of the off-farm salary and wages exemption allows drought affected producers to supplement their production income with off-farm salary and wages while maintaining eligibility for Exceptional Circumstances Relief Payments. This Government assistance is designed to ensure producers with long-term prospects for viability will not be forced to leave the land due to short-term adverse events that are beyond their ability to manage.
The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The Regulations commenced on the day after registration.
Overview
The Farm Household Support Amendment Regulations 2006 (No. 1) were enacted to address the severe and prolonged downturn in farm income caused by rare and severe climatic events such as drought. These Regulations, issued under the authority of the Minister for Agriculture, Fisheries and Forestry, aim to provide targeted assistance to farmers in regions or industries declared as experiencing Exceptional Circumstances. By prescribing a later closing date for the off-farm salary and wages exemption, the Regulations ensure that farmers can continue to supplement their income from off-farm work while remaining eligible for Exceptional Circumstances Relief Payments, thereby supporting their ongoing viability and preventing them from being forced off their land due to short-term adverse events. This decision was made in recognition of the extreme drought conditions and the need for government support, following consultations with multiple government departments and agencies.
Scope and Application
The Farm Household Support Amendment Regulations 2006 (No. 1) apply to persons and entities involved in farming activities, particularly those in regions or industries experiencing severe and prolonged downturns in farm income due to exceptional circumstances, such as drought. The regulations are designed to provide targeted assistance through Exceptional Circumstances Relief Payments, which aim to support eligible farmers with their living expenses while ensuring their long-term viability. Section 24A(4) of the Farm Household Support Act 1992 allows for the disregard of up to $10,000 in off-farm salary and wages from a person’s income when calculating the rate of relief payments, with the Regulations extending this exemption until 30 June 2008. The decision to extend the exemption was made by the Government, recognising the severity of drought conditions and the importance of off-farm income as a management tool during such crises. These Regulations have a national jurisdictional reach and apply across all states and territories in Australia, with the support of various government departments. Subordinate instruments may further specify the application of these regulations.
Key Provisions
The Farm Household Support Amendment Regulations 2006 (No. 1) under the Farm Household Support Act 1992 establish key provisions for providing financial assistance to farmers in regions or industries that are experiencing severe and prolonged downturns in farm income due to rare and severe climatic events, such as drought. The main sections of the Act that are impacted by these Regulations include Section 24A, which deals with the exemption of off-farm salary and wages when calculating Exceptional Circumstances Relief Payments (paragraph 24A(4)). The Regulations extend the exemption period for these off-farm earnings to 30 June 2008 (Regulation 6). This extension aims to provide continued financial support to farmers affected by exceptional circumstances, ensuring they can manage their living expenses without being forced to leave their land due to short-term economic hardship.
These Regulations impose specific obligations on the parties they govern. Farmers who are eligible for Exceptional Circumstances Relief Payments must ensure their income calculations comply with the stipulations set forth in Section 24A and the Regulations. This includes acknowledging the extended exemption period for off-farm salary and wages as specified in Regulation 6. Additionally, the Regulations require that any declarations or applications for relief payments are made in accordance with the provisions of the Act and the Regulations. Government departments and agencies involved in the administration of these payments must also ensure that they adhere to the timelines and conditions set out in the Regulations when processing applications and disbursing funds.
Failure to comply with the provisions of the Act and the Regulations can result in various consequences. While the explanatory statement does not explicitly detail the specific offences or penalties, it is reasonable to infer that breaches of these provisions could lead to civil or criminal liabilities under the relevant sections of the Act. For instance, providing false information to qualify for relief payments could be considered fraudulent conduct, potentially resulting in fines or other penalties as prescribed by law. The exact penalties would depend on the nature and severity of the breach, but they could include financial penalties, legal action, or other enforcement measures as determined by the relevant authorities.