Farm Household Support Amendment (Relief Measures) Act (No. 2) 2019

Administered by Department of Agriculture, Fisheries and Forestry

Legislation au C2019A00117 In force Act

Select Document

No. 117, 2019

An Act to amend the Farm Household Support Act 2014, and for related purposes

Contents

1 Short title

2 Commencement

3 Schedules

Schedule 1—Rate of farm household allowance

Farm Household Support Act 2014

Schedule 2—Assets test

Farm Household Support Act 2014

Schedule 3—Farm financial assessments

Farm Household Support Act 2014

Farm Household Support Minister’s Rule 2014

Schedule 4—Activity supplement

Farm Household Support Act 2014

Farm Household Support Minister’s Rule 2014

Farm Household Support Amendment (Relief Measures) Act (No. 2) 2019

No. 117, 2019

An Act to amend the Farm Household Support Act 2014, and for related purposes

[Assented to 11 December 2019]

The Parliament of Australia enacts:

1 Short title

This Act is the Farm Household Support Amendment (Relief Measures) Act (No. 2) 2019.

2 Commencement

(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

Commencement information
Column 1	Column 2	Column 3
Provisions	Commencement	Date/Details
1. The whole of this Act	A single day to be fixed by Proclamation. However, if the provisions do not commence within the period of 6 months beginning on the day this Act receives the Royal Assent, they commence on the day after the end of that period.	11 June 2020

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3 Schedules

Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Note: The provisions of the Farm Household Support Minister’s Rule 2014 amended by this Act, and any other provisions of that instrument, may be amended or repealed by an instrument made under subsection 106(1) of the Farm Household Support Act 2014 (see subsection 13(5) of the Legislation Act 2003).

Schedule 1—Rate of farm household allowance

Farm Household Support Act 2014

1 At the end of Subdivision A of Division 8 of Part 2

Add:

59A Income reduction

(1) The following do not apply in relation to the rate of farm household allowance for a person who has turned 22:

(a) steps 5 and 6 of the method statement in point 1068‑A1 of Benefit Rate Calculator B;

(b) Module G of Benefit Rate Calculator B;

(2) Paragraph (a) of step 7 of the method statement in point 1068‑A1 of Benefit Rate Calculator B applies in relation to the rate of farm household allowance for a person who has turned 22 as if the provisional fortnightly payment rate were the amount worked out at step 4 of that method statement.

(3) Subsections (1) and (2) do not apply for the purposes of working out if farm household allowance is payable to a person for any day.

Note: Section 37 provides that farm household allowance is not payable to a person if the person’s allowance rate would be nil. The income test in the Social Security Act (as affected by Subdivisions C and D of this Division) applies in working out if the allowance is payable.

2 At the end of Subdivision B of Division 8 of Part 2

Add:

65A Income reduction

(1) The following do not apply in relation to the rate of farm household allowance for a person who has not turned 22:

(a) steps 12 and 13 of the method statement in point 1067G‑A1 of the Youth Allowance Rate Calculator;

(b) Module H of the Youth Allowance Rate Calculator;

(2) Paragraph (a) of step 14 of the method statement in point 1067G‑A1 of the Youth Allowance Rate Calculator applies in relation to the rate of farm household allowance for a person who has not turned 22 as if the provisional fortnightly payment rate were the amount worked out at step 4 of that method statement.

(3) Subsections (1) and (2) do not apply for the purposes of working out if farm household allowance is payable to a person for any day.

3 Application provision

The amendments made by this Schedule apply in relation to working out whether farm household allowance is payable, or the rate of farm household allowance, for days on or after the commencement of this item.

Schedule 2—Assets test

Farm Household Support Act 2014

1 Sections 33 and 34

Repeal the sections, substitute:

33 Assets value limit

Farm household allowance is not payable to a person if the sum of the value of the person’s farm assets and of the value of the person’s non‑farm assets exceeds $5.5 million.

2 At the end of Subdivision A of Division 6 of Part 2

Add:

36A Valuing a water entitlement right

If, in working out the value of a person’s farm assets, the value of a right or interest in land used wholly or mainly for the purposes of a farm enterprise includes the value of a water entitlement right that is used or held wholly or mainly for the purposes of that farm enterprise, then the value of that water entitlement right is to be disregarded in working out the value of the person’s farm assets referred to in paragraph 35(2)(c).

3 Subsection 93(1) (table item 26)

Omit “sections 33 and 34”, substitute “Subdivision A of Division 6 of Part 2”.

4 Subsection 93(1) (table item 28)

Omit “tests in sections 33 and 34”, substitute “test in section 33”.

5 Subsection 93(1) (table item 29)

Repeal the item.

6 Application provision

The amendments made by this Schedule apply in relation to working out whether farm household allowance is payable for days on or after the commencement of this item.

Schedule 3—Farm financial assessments

Farm Household Support Act 2014

1 Subsection 5(1) (definition of prescribed adviser)

Repeal the definition.

2 Section 84

Omit “prescribed adviser”, substitute “person who has appropriate qualifications or expertise to conduct the assessment”.

3 Section 84

Omit “the adviser”, substitute “the person who conducted the assessment”.

4 Section 86 (heading)

Omit “prescribed adviser”, substitute “person who has appropriate qualifications or expertise”.

5 Section 86

Omit “prescribed adviser”, substitute “person”.

6 At the end of section 86

Add:

; and (c) has appropriate qualifications or expertise to conduct the assessment.

7 After paragraph 87(c)

Insert:

(ca) the cost of the assessment is greater than nil; and

8 Subparagraph 87(e)(ii)

Omit “prescribed adviser”, substitute “person”.

9 Paragraph 88(1)(b)

Omit “prescribed adviser”, substitute “person”.

10 At the end of paragraph 89(b)

Add “, being the cost specified in the invoice mentioned in paragraph 87(d)”.

Farm Household Support Minister’s Rule 2014

11 Section 4 (definition of professional body)

Repeal the definition.

12 Section 5

Repeal the section.

13 Application provision

The amendments made by this Schedule apply in relation to notices given under subsection 85(2) of the Farm Household Support Act 2014 on or after the commencement of this item.

Schedule 4—Activity supplement

Farm Household Support Act 2014

1 Paragraph 82(1)(b)

Repeal the paragraph, substitute:

(b) the sum of:

(i) the cost of the activity, being the cost specified in the invoice mentioned in paragraph 80(1)(g) or (2)(f); and

(ii) the costs of travel or accommodation or both that are incurred in connection with the activity, to the extent that the Secretary considers those costs to be reasonable;

2 Application provision

Subparagraph 82(1)(b)(ii) of the Farm Household Support Act 2014, as substituted by this Schedule, applies in relation to costs of travel or accommodation that are incurred on or after the commencement of this item.

Farm Household Support Minister’s Rule 2014

3 Section 8

Repeal the section, substitute:

8 Maximum amount of activity supplement

For the purposes of paragraph 82(1)(a) of the Act, the maximum amount of activity supplement is $10,000.

Note: Subsection 82(1) of the Act provides that the amount of activity supplement payable to a person for an activity is the lowest of the following amounts:

(a) the maximum amount prescribed by this rule;

(b) the sum of the cost of the activity and the reasonable costs of travel or accommodation or both that are incurred in connection with the activity;

4 Application provision

The amendment of the Farm Household Support Minister’s Rule 2014 made by this Schedule applies in relation to working out the amount of activity supplement payable to a person for an activity begun on or after the commencement of this item.

[Minister’s second reading speech made in—

House of Representatives on 27 November 2019

Senate on 5 December 2019]

(213/19)

Overview

The Farm Household Support Amendment (Relief Measures) Act (No. 2) 2019 was enacted by the Parliament of Australia to amend the Farm Household Support Act 2014 and address the financial hardships faced by farm households, particularly in the context of ongoing drought conditions. The policy objective of this Act is to provide relief measures that offer additional support to farm households in need, ensuring that they receive the necessary assistance to sustain their operations. The Act includes changes to the rate of farm household allowance, the assets test, farm financial assessments, and the activity supplement. These amendments aim to make the support system more responsive and effective in helping farm households navigate challenging economic conditions. The Act commenced on a date to be fixed by proclamation, with a default commencement date set for 11 June 2020, should the proclamation not be issued within six months of the Act receiving Royal Assent.

Scope and Application

The Farm Household Support Amendment (Relief Measures) Act (No. 2) 2019 amends the Farm Household Support Act 2014 to provide relief measures for farm households affected by adverse weather conditions. This Act applies to farm households, which include individuals and families engaged in farming activities for a living, within the jurisdiction of the Commonwealth of Australia. The Act modifies the farm household allowance, assets test, farm financial assessments, and activity supplement provisions. Specifically, it alters the income reduction for those who have turned 22, exempts certain steps in the method statement for those who have not turned 22, repeals the assets value limit exceeding $5.5 million, modifies the definition of prescribed advisers to persons with appropriate qualifications or expertise, and limits the maximum amount of activity supplement to $10,000. The Act’s provisions commence on a date to be fixed by proclamation, but no later than 11 June 2020, unless otherwise specified in the commencement table. Additionally, the Farm Household Support Minister’s Rule 2014 may be amended or repealed by an instrument made under the Farm Household Support Act 2014.

Key Provisions

The Farm Household Support Amendment (Relief Measures) Act (No. 2) 2019 amends the Farm Household Support Act 2014, introducing various changes intended to provide relief measures for farm households. Section 1 of the Act specifies the short title, while section 2 outlines the commencement date, which is a single day to be fixed by proclamation, but no earlier than six months from Royal Assent, which means it will commence on 11 June 2020. The Act's primary amendments are detailed in its schedules, which alter various aspects of the Farm Household Support Act 2014. Schedule 1 modifies the rate of farm household allowance by exempting individuals who have turned 22 from certain steps and modules of the Benefit Rate Calculator B, and similarly adjusts the Youth Allowance Rate Calculator for those who have not turned 22. These changes take effect for days on or after the commencement of the item. Schedule 2 introduces an assets test, specifying that farm household allowance is not payable if the combined value of farm and non-farm assets exceeds $5.5 million, and it also introduces a provision for disregarding the value of water entitlement rights used for farming purposes. These changes apply to determining allowance payments on or after the commencement date. Schedule 3 removes the requirement for a "prescribed adviser" in farm financial assessments and instead mandates that the person conducting the assessment must have appropriate qualifications or expertise. It also introduces a provision that the cost of the assessment must be greater than nil. These changes apply to notices given under the Farm Household Support Act 2014 on or after the commencement of the item. Schedule 4 modifies the calculation of the activity supplement by specifying that it includes the cost of the activity and reasonable travel or accommodation costs incurred in connection with the activity. It also sets a maximum amount for the activity supplement at $10,000. These changes apply to activities begun on or after the commencement of the item. The Act imposes several obligations on the parties it governs. Firstly, it requires that any person conducting a farm financial assessment must have appropriate qualifications or expertise. Secondly, it mandates that the cost of such assessments must be greater than nil. Additionally, the Act requires that in calculating the activity supplement, the costs of travel or accommodation related to the activity must be considered reasonable by the Secretary. Failure to comply with these obligations could result in the disallowance of claims for allowances or supplements. Breach of the provisions of this Act could lead to civil or criminal consequences. Although specific penalties are not outlined in the Act, breaches of similar provisions in related legislation often result in fines or other penalties as determined by the courts. The precise penalties for breaches of this Act would be determined based on the specific nature of the breach and in accordance with relevant laws.

Area of Law: Social Security Law
Instrument: Amending Act
Concepts: Commencement Provisions; Repeal & Amendment; Reporting & Disclosure Obligations; Regulatory Standards

Interactions

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.

Legislation content

Overview

Scope and Application

Key Provisions

Legal classification tags

Interactions

Authorises

All Versions