Farm Household Support Amendment Regulations 2011 (No. 1)

Administered by Department of Agriculture

Legislation au F2011L00962 Regulations Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Select Legislative Instrument 2011 No. 70

 

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

 

Farm Household Support Act 1992

 

Farm Household Support Amendment Regulations 2011 (No. 1)

 

 

 

The Farm Household Support Act 1992 (the Act) establishes the Exceptional Circumstances Relief Payment for farmers, and two categories of small business. This payment provides financial assistance to eligible individuals operating farms or small businesses who are experiencing hardship due to the effect of 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.
 

The Regulations amend the Farm Household Support Regulations 1993 (the Principal Regulations) to allow small businesses to access certain Exceptional Circumstance Relief Payments, and extend the $20,000 off-farm salary and wages exemption for farmers for a further year.
 

Under subsection 8A(5) of the Act, a small business operator is able to receive financial assistance where in a period of normal turnover, 70 per cent or more of the income of the business is derived from the supply of goods or services to farm enterprises, where the farm enterprise is situated in an exceptional circumstances declared area. The gross income of the business must also have been significantly reduced due to the effect of the exceptional circumstances.
 

Under subsection 8A(7) of the Act, a small business operator is able to receive the exceptional circumstances relief payment where their business is situated in an agricultural dependent town or locality, situated in an exceptional circumstance declared area, with a population of less than 10 000.
 

Sections 6C(1) and 6C(2) of the Act and the Principal Regulations previously provided that exceptional circumstances relief payments for small businesses were not payable to an eligible person in respect of any period after 30 June 2011.
 

The Regulations extend the closing day for qualification for exceptional circumstances relief payments for eligible small businesses under Subsections 6C(1) and 6C(2) to 30 June 2012 so that small business operators can continue to access payments as the current drought endures.
 

Subsections 24A(4) of the Act provides for $20,000 in off-farm salary and wages to be disregarded from a farmer’s income for the purposes of calculating a rate of an exceptional circumstances relief payment.
 

Subsection 24A (4) of the Act and the Principal Regulations previously provided that the closing day for the $20 000 off-farm salary and wages exemption for farmers was 30 June 2011.

The Regulations prescribe a later closing day of 30 June 2012 to permit farmers and permit farmers access to the exemption for a further year.
 

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.

 

Consultations

No external consultation was undertaken in the process of preparing the regulatory change, as the change was announced as part of the Budget. The regulation changes will allow eligible farmers and small business operators continue to receive support during the current drought.
 

The Office of Best Practice Regulation (OBPR) and the Office of Legislative Drafting and Publishing (OLDP) were consulted in the preparation of this regulatory change.
 

Amendments are minor in nature and a Regulatory Impact Statement was not required.


Attachment A

 

 

 

Farm Household Support Amendment Regulations 2011 (No. 1)

 

Regulation 1 Name of Regulations

 

This regulation states that the Regulations are called the Farm Household Support Amendment Regulations 2011 (No. 1).

 

Regulation 2 Commencement

 

This regulation provides for the Regulations to commence on the day after registration on the Federal Register of Legislative Instruments.

 

Regulation 3 Amendment of Farm Household Support Regulations

 

This regulation provides that Schedule 1 amends the Farm Household Support Regulations 1993.

 

Schedule 1 Amendment

Item [1] Regulation 4B (1)

 

This item amends regulation 4B (1) and provides that the prescribed day for Subsection 6C (1) of the Farm Household Support Act 1992 is 30 June 2012.

 

This item prescribes the closing day for qualification for exceptional circumstances relief payments for eligible small businesses so that small business operators can continue to access payments as the current drought endures.

 

Item [2] Regulation 4B (2)

 

This item amends regulation 4B (2) and provides that the prescribed day for Subsection 6C (2) of the Farm Household Support Act 1992 is 30 June 2012.

 

This item prescribes the closing day for qualification for exceptional circumstances relief payments for eligible small businesses so that small business operators can continue to access payments as the current drought endures.

 

Item [3] Regulation 6

 

This item prescribes a later closing day for the $20 000 off-farm salary and wages exemption of 30 June 2012 to permit farmers to access the exemptions as the current drought endures. The long-term nature of this drought has meant that many farm families have had to increase their amount of off-farm work. The off-farm income test exemption enables farmers to earn an extra $20 000 non-farm income without affecting their eligibility for benefits and many more farm families continue to be eligible for support.

 

Overview

The Farm Household Support Amendment Regulations 2011 (No. 1), issued under the authority of the Minister for Agriculture, Fisheries and Forestry, amend the Farm Household Support Regulations 1993 to provide ongoing support to farmers and small business operators affected by the ongoing drought conditions. Enacted by the Australian Parliament, the Farm Household Support Act 1992 was designed to address the financial hardships faced by farm households and small businesses due to exceptional circumstances. The policy objective of these amendments is to extend the support framework to ensure continued access to financial assistance for those most affected by the prolonged drought. This regulatory change extends the eligibility period for exceptional circumstances relief payments for small businesses and the exemption for $20,000 in off-farm salary and wages for farmers, both until 30 June 2012, to accommodate the enduring nature of the drought and its impact on these sectors.

Scope and Application

The Farm Household Support Amendment Regulations 2011 (No. 1) amend the Farm Household Support Regulations 1993 to extend the scope and application of financial assistance available under the Farm Household Support Act 1992 for small businesses and farmers experiencing hardship due to exceptional circumstances, such as drought. The Act applies to farmers and small businesses operating in areas declared under exceptional circumstances, with specific eligibility criteria including the derivation of a significant portion of income from farm enterprises and a significant reduction in gross income due to such circumstances. Additionally, the Act applies to small businesses situated in agricultural dependent towns or localities with populations under 10,000 in declared exceptional circumstances areas. The Regulations extend the eligibility period for exceptional circumstances relief payments for small businesses to 30 June 2012 and for the $20,000 off-farm salary and wages exemption for farmers to the same date, providing continued support during the ongoing drought. The Regulations are applicable nationally, and there are no stated exclusions or thresholds beyond those outlined in the Act. Any further specifications or extensions of application are made through subordinate instruments, as permitted under the Act.

Key Provisions

The Farm Household Support Amendment Regulations 2011 (No. 1) extend the eligibility period for small businesses to access Exceptional Circumstance Relief Payments and the $20,000 off-farm salary and wages exemption for farmers, as provided under the Farm Household Support Act 1992. These amendments are made to ensure that eligible small business operators and farmers can continue to receive financial assistance as the current drought persists (Regulation 3). Specifically, the regulations extend the eligibility period for exceptional circumstances relief payments for eligible small businesses from 30 June 2011 to 30 June 2012 (Regulation 4B (1) and (2)). Additionally, the regulations extend the closing day for the $20,000 off-farm salary and wages exemption for farmers from 30 June 2011 to 30 June 2012 (Regulation 6). The Act imposes several obligations on the parties it governs. Eligible small business operators must ensure that their business meets the criteria for receiving exceptional circumstances relief payments, such as deriving 70% or more of their income from supplying goods or services to farm enterprises in an exceptional circumstances declared area, and having experienced a significant reduction in gross income due to the effect of the exceptional circumstances (subsection 8A(5)). Farmers must also ensure that their off-farm salary and wages do not exceed the $20,000 exemption limit to maintain their eligibility for benefits (subsection 24A(4)). Failure to comply with the provisions of the Act and Regulations may result in various consequences. While the explanatory statement does not explicitly outline specific offences, penalties, or civil/criminal consequences for breach, it is reasonable to assume that non-compliance could lead to disqualification from receiving exceptional circumstances relief payments or the $20,000 off-farm salary and wages exemption. The maximum penalties for such breaches are not stated in the explanatory statement. However, given the nature of the legislation and the potential financial assistance involved, penalties could include fines, repayment of the amounts received in breach of the provisions, or other appropriate civil or criminal sanctions as determined by the relevant authorities.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.