Farm Household Support Amendment (Relief Measures) Act (No. 1) 2020

Overview

The Farm Household Support Amendment (Relief Measures) Act (No. 1) 2020 was enacted by the Parliament of Australia to address specific gaps in the Farm Household Support Act 2014, particularly in response to the economic impacts of the COVID-19 pandemic on farm households. The primary aim of this legislation is to provide immediate relief measures to alleviate financial stress faced by farm households, primarily through modifications to the business income reconciliation process and by extending the timeframe for conducting farm financial assessments. The Act was assented to on 26 March 2020 and commenced on that date, with specific provisions related to business income reconciliation and farm financial assessments coming into effect on 1 July 2020 and 27 March 2020, respectively. This Act seeks to ensure that farm households receive timely and appropriate support during this challenging period.

Scope and Application

The Farm Household Support Amendment (Relief Measures) Act (No. 1) 2020 amends the Farm Household Support Act 2014 to provide relief measures for farm households, particularly in response to adverse conditions affecting their income. This Act applies to farm households and the entities associated with them, focusing on adjustments to business income reconciliation and extending the timeframe for farm financial assessments. It operates under the jurisdiction of the Commonwealth of Australia, impacting all states and territories where the original Farm Household Support Act 2014 is applicable. The Act's provisions commenced on various dates starting from the day it received Royal Assent on 26 March 2020, with specific schedules and items commencing on later dates, such as 1 July 2020 and the day after Royal Assent, 27 March 2020. Notably, the Act does not introduce new exclusions or exemptions beyond those specified in the original Act, and it allows for further adjustments through subordinate instruments where necessary.

Key Provisions

The Farm Household Support Amendment (Relief Measures) Act (No. 1) 2020 amends the Farm Household Support Act 2014 by removing certain business income reconciliation provisions and extending the time limit for farm financial assessments. The Act repeals the definition of "business income" in section 5 of the Farm Household Support Act 2014 and removes references to Subdivisions C and D from sections 55(2) and 60(2). It also repeals Subdivision D of Division 8 of Part 2, but specifies that this subdivision continues to apply to certain circumstances, such as working out the rate of farm household allowance for days occurring before the commencement of the repeal, and calculating amounts of farm household allowance paid in relation to those days that are debts due to the Commonwealth. The Farm Household Support Amendment (Relief Measures) Act (No. 1) 2020 imposes certain obligations on the parties or entities it governs. The Act requires that the definition of "business income" is removed, and references to Subdivisions C and D are omitted from sections 55(2) and 60(2) of the Farm Household Support Act 2014. It also requires that Subdivision D of Division 8 of Part 2 be repealed, but specifies that it continues to apply to certain circumstances. Additionally, the Act requires that the time limit for farm financial assessments be extended, and that the relevant provisions apply to notices given under subsection 85(2) of the Farm Household Support Act 2014 on or after the commencement of the amendment. The Farm Household Support Amendment (Relief Measures) Act (No. 1) 2020 does not specify any offences, penalties, or civil or criminal consequences for breach. However, it is important to note that any breach of the provisions of the Farm Household Support Act 2014, including those amended by this Act, may result in penalties or other consequences under that Act or other relevant legislation. The maximum penalties for offences under the Farm Household Support Act 2014 vary depending on the offence, but can include fines of up to $22,200 for individuals and $111,000 for bodies corporate, as well as imprisonment for up to two years in certain circumstances. It is important for parties or entities governed by the Act to ensure that they comply with all relevant provisions to avoid any potential penalties or consequences.