EXPLANATORY STATEMENT
Issued by Authority of the Minister for Agriculture
Farm Household Support (Consequential and Transitional Provisions) Act 2014
Farm Household Support (Consequential and Transitional Provisions) Commencement Proclamation 2014
Item 9 of the table in subsection 2(1) of the Farm Household Support (Consequential and Transitional Provisions) Act 2014 (Act) provides that Division 5 of Part 2 of Schedule 2 to the Act commences on a day fixed by Proclamation. The Act received the Royal Assent on 28 March 2014.
The purpose of the Farm Household Support (Consequential and Transitional Provisions) Commencement Proclamation 2014 (Proclamation) is to provide for Division 5 of Part 2 of Schedule 2 to the Act to commence on 1 October 2014.
The Act accompanies the Farm Household Support Act 2014, which provides the mechanism to implement the Farm Household Allowance (FHA), an income support payment for farmers and their partners who are experiencing financial hardship. The Act repeals the Farm Household Support Act 1992, which contains provisions relating to the exceptional circumstances relief payment; and other payments and schemes that have ceased. The Act also makes consequential amendments of a minor nature to other Acts to remove redundant references and to support the full and effective implementation of FHA; and includes contingent amendments and general transitional provisions.
FHA will replace Interim FHA, which commenced on 28 February 2014 via the Financial Management and Accountability Amendment (2014 Measures No. 2) Regulation 2014. To avoid a break in payment, the Government decision to establish Interim FHA included that recipients of Interim FHA who wish to claim FHA will be eligible to receive payment of Interim FHA until 30 September 2014 or until their application for FHA has been finalised, whichever is earlier.
The amendments in Division 5 of Part 2 of Schedule 2 to the Act repeal references to a payment of Transitional Farm Family Payment (the predecessor to Interim FHA) and Interim FHA in the: exempt income provisions in the Income Tax Assessment Act 1997; and the qualification for income support bonus provisions in the Social Security Act 1991. In these provisions, the reference to Transitional Farm Family Payment is redundant as of 3 March 2014; and the reference to Interim FHA will be redundant as of 1 October 2014.
The other provisions in the Act commenced or will commence at different dates for different purposes. Some provisions commenced on 28 March 2014 and the commencement of other provisions is subject to passage and commencement of other legislation.
The Proclamation specifies that Division 5 of Part 2 of Schedule 2 to the Act commences on 1 October 2014. This is the day after the last day that recipients of Interim FHA who wish to claim FHA will be eligible to receive payment of Interim FHA.
The Department of Agriculture consulted industry stakeholders and Australian Government agencies in developing the policy supporting FHA. Following the 2008-09 national review of drought policy, in 2010 the Australian Government, in partnership with the Western Australian government, conducted a two year pilot of drought reform measures in regions of Western Australia. The pilot was reviewed in 2011 by an independent panel, which reported strong support for an income support payment for farm families in hardship that is based on demonstrated individual need rather than a climatic trigger. FHA was developed in response to the national review of drought policy and the Western Australian pilot review. The major policy settings for FHA have been developed with significant input from the central and social policy agencies of the Australian Government, and in consultation with industry peak bodies, including the National Farmers’ Federation, and state/territory government agriculture departments.
The Office of Best Practice Regulation (OBPR) was consulted and considers that the Proclamation has minor impacts and therefore a Regulation Impact Statement is not required (OBPR Reference Number: 16411).
The Office of Parliamentary Counsel (OPC) was consulted in the development of this Legislative Instrument. No other consultation was undertaken because the Proclamation is of a minor or machinery nature.
The Statement of Compatibility with Human Rights is set out in the Attachment.
The Proclamation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
ATTACHMENT
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Farm Household Support (Consequential and Transitional Provisions) Commencement Proclamation 2014
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative Instrument
This Legislative Instrument provides that Division 5 of Part 2 of Schedule 2 to the Farm Household Support (Consequential and Transitional Provisions) Act 2014 (Act) commences on 1 October 2014.
The Act accompanies the Farm Household Support Act 2014, which provides the mechanism to implement the Farm Household Allowance (FHA), an income support payment for farmers and their partners who are experiencing financial hardship. FHA will replace the non‑legislated Interim FHA, which commenced on 28 February 2014 via the Financial Management and Accountability Amendment (2014 Measures No. 2) Regulation 2014. To avoid a break in payment, the Government decision to establish Interim FHA included that recipients of Interim FHA who wish to claim FHA will be eligible to receive payment of Interim FHA until 30 September 2014 or until their application for FHA has been finalised, whichever is earlier.
Division 5 of Part 2 of Schedule 2 to the Act repeals references to a payment of Transitional Farm Family Payment (TFFP, the predecessor to Interim FHA) and Interim FHA in the: exempt income provisions in the Income Tax Assessment Act 1997; and the qualification for income support bonus provisions in the Social Security Act 1991. In these provisions, the reference to TFFP is redundant as of 3 March 2014; and the reference to Interim FHA will be redundant as of 1 October 2014.
Human rights implications
This Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
The Hon. Barnaby Joyce MP
Minister for Agriculture