EXPLANATORY STATEMENT
Select Legislative Instrument 2008 No. 247
Issued by the Authority of the Minister for Agriculture, Fisheries and Forestry
Farm Household Support Act 1992
Farm Household Support Amendment Regulations 2008 (No. 2)
The Farm Household Support Act 1992 (the Act) establishes the exceptional circumstances relief payment for small business. This payment provides financial assistance to eligible individuals operating a small business who are experiencing hardship due to the effect of exceptional circumstances in the area where the business operates.
A business operator is able to receive financial assistance under the Act where in normal turnover the majority of the income of the business is derived from the supply of goods or services to farm enterprises, the business is situated in an exceptional circumstances declared area and the gross income of the business has been significantly reduced due to the effect of the exceptional circumstances.
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.
Section 6C of the Act currently provides that exceptional circumstances relief payments for small business is not payable to an eligible person in respect of any period after 30 June 2008, or such later day as is prescribed.
The purpose of the Regulations is to extend the end date for qualification for exceptional circumstances relief payments by one year. This would provide continued financial assistance for small business operators in Exceptional Circumstances declared areas until 30 June 2009.
The Regulations create regulation 4B which prescribes 30 June 2009 as the new ending date for exceptional circumstances relief payments for small business operators.
The detail of the Regulations is set out in Attachment A.
The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation was undertaken with the Attorney General’s Department (Office of Legislative Drafting and Publishing), the Office of Best Practice Regulation and Centrelink during the development of this note.
The Regulations are taken to have commenced on 30 June 2008. The Office of Legislative Drafting and Publishing has confirmed that the retrospective operation of the proposed Regulations is permissible as they would not contravene subsection 12 (2) of the Legislative Instruments Act 2003. In particular, there would be no detrimental impact on any persons who may have accessed exceptional circumstances relief payments since 1 July 2008.
Attachment A
Farm Household Support Amendment Regulations 2008 (No. 2)
Regulation 1 Name of Regulations
This regulation states that the Regulations are called the Farm Household Support Amendment Regulations 2008 (No. 2).
Regulation 2 Commencement
This regulation provides for the Regulations to have commenced on 30 June 2008.
Regulation 3 Amendment of Farm Household Support Regulations
This regulation provides that Schedule 1 amends the Farm Household Support Regulations 1993.
Schedule 1 Amendment
This item introduces regulation 4B and refers to the prescribed day for Subsection 6C (1) of the Farm Household Support Act 1992.
[1] After regulation 4A
insert
4B Ending exceptional circumstances relief payment for small business — prescribed day (Act s. 6C)
For subsection 6C (1) of the Act, 30 June 2009 is prescribed.
Overview
The Farm Household Support Amendment Regulations 2008 (No. 2) were enacted to address the need for an extension of the exceptional circumstances relief payments for small businesses under the Farm Household Support Act 1992. These regulations were introduced by the Minister for Agriculture, Fisheries and Forestry and aim to provide continued financial assistance to small business operators in areas affected by exceptional circumstances until 30 June 2009. The policy objective of the regulations is to alleviate financial hardship for eligible small business operators who derive the majority of their income from supplying goods or services to farm enterprises, and whose income has been significantly reduced due to exceptional circumstances. The regulations achieve this by amending the Farm Household Support Regulations 1993 to extend the qualifying period for relief payments by one year, thereby ensuring that affected businesses can access support for an additional year beyond the original end date of 30 June 2008.
Scope and Application
The Farm Household Support Act 1992 provides financial assistance to eligible small business operators who are experiencing hardship due to exceptional circumstances in their operational area. This assistance is available if the majority of the business's income is derived from supplying goods or services to farm enterprises, the business is located in a declared exceptional circumstances area, and the business's gross income has been significantly reduced by these exceptional circumstances. The Act applies to individuals who meet these criteria, ensuring they receive the necessary support during times of significant adversity. The geographic reach of the Act extends to any area declared under the Act as experiencing exceptional circumstances, thereby covering multiple regions and localities as needed. The Farm Household Support Amendment Regulations 2008 (No. 2) extend the eligibility period for these relief payments by one year, from the original end date of 30 June 2008 to 30 June 2009, ensuring continued support for affected small business operators until the new prescribed date.
Key Provisions
The Farm Household Support Amendment Regulations 2008 (No. 2) amend the Farm Household Support Regulations 1993 to extend the end date for exceptional circumstances relief payments for small businesses by one year. Regulation 4B (as introduced in Schedule 1 of the Regulations) prescribes 30 June 2009 as the new end date for these payments under section 6C(1) of the Farm Household Support Act 1992 (the Act). This means that small business operators in areas declared under exceptional circumstances can continue to receive financial assistance until this new date.
The Act, in section 58(1), allows the Governor-General to make regulations that are necessary for carrying out or giving effect to the Act, and section 6C of the Act originally set 30 June 2008 as the end date for these payments. The Regulations, by introducing regulation 4B, ensure that the assistance is available for one additional year, thereby extending the support to those in need. The Regulations came into effect on 30 June 2008 and have been confirmed to operate retrospectively without causing any detrimental impact on those who may have accessed the payments since 1 July 2008.
Under these Regulations, small business operators who meet the eligibility criteria can continue to apply for and receive the exceptional circumstances relief payments until the new end date of 30 June 2009. This includes businesses deriving the majority of their income from supplying goods or services to farm enterprises, located in areas declared under exceptional circumstances, and experiencing significant income reduction due to these circumstances.
The Act imposes specific obligations on eligible individuals to ensure they meet the criteria for receiving the relief payments. These include providing accurate information about their business income and the impact of exceptional circumstances. Failure to comply with these obligations can result in penalties. The Regulations do not explicitly state any new offences or penalties but imply that breaches of the original Act's provisions would still apply. Under the original Act, non-compliance could lead to civil or criminal consequences, with penalties depending on the severity of the breach.