Loan (Farmers’ Debt Adjustment)
No. 62 of 1971
An Act to amend the Loan (Farmers’ Debt Adjustment) Act 1935–1950.
[Assented to 25 May 1971]
BE it enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—
Short title and citation.
1.—(1.) This Act may be cited as the Loan (Farmers’ Debt Adjustment) Act 1971.
(2.) The Loan (Farmers’ Debt Adjustment) Act 1935–1950 is in this Act referred to as the Principal Act.
(3.) The Principal Act, as amended by this Act, may be cited as the Loan (Farmers’ Debt Adjustment) Act 1935–1971.
Commencement
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Application of moneys paid under section 6.
3. Section 7 of the Principal Act is amended by omitting from paragraph (g) of sub-section (1.) the words “the next succeeding section” and inserting in their stead the words “section eight of this Act”.
4. After section 7 of the Principal Act the following sections are inserted:—
Additional purposes for which moneys may be used.
“7a.—(1.) Notwithstanding anything to the contrary in the last two preceding sections, but subject to this section, moneys granted or deemed to be granted to a State under this Act may be used by the State for the purposes for which those moneys could lawfully be used if they had been paid to the State by the Commonwealth under the States Grants (Rural Reconstruction) Act 1971.
“(2.) Notwithstanding anything to the contrary in paragraph (d) of sub-section (1.) of the last preceding section, where any moneys used by a State for the purposes referred to in the last preceding sub-section are repaid wholly or in part to the State, the moneys so repaid may be used by the State for those purposes.
“(3.) In relation to moneys used for the purposes referred to in subsection (1.) of this section—
(a) the conditions specified in paragraphs (a), (b), (c) and (d) of sub-section (1.) of the last preceding section do not apply;
(b) the condition specified in paragraph (i) of sub-section (1.) of that section applies as if the words ‘the conditions specified in the foregoing provisions of this section’ were omitted and the words ‘the provisions of section seven a of this Act’ were inserted in their stead; and
(c) section eight of this Act applies as if the provisions of this section were conditions of the grant of those moneys.
Payments by State of Tasmania for drought relief.
“7b. Notwithstanding anything to the contrary in sections six and seven of this Act, the amount of Two hundred and eighty-eight thousand dollars paid by the State of Tasmania before the commencement of this section to farmers for the purpose of relief of financial distress caused by drought shall, for the purposes of this Act, be deemed to have been paid out of moneys granted or deemed to be granted to that State under this Act and to have been used in accordance with the conditions specified in section seven of this Act.”.
Repeal of section 9.
5. Section 9 of the Principal Act is repealed.
Protection of payments to creditors.
6. Section 10 of the Principal Act is amended by adding at the end thereof the words “or of the Bankruptcy Act 1966 or that Act as amended from time to time”.
Overview
The Loan (Farmers’ Debt Adjustment) Act 1971 was enacted by the Commonwealth Parliament to amend the Loan (Farmers’ Debt Adjustment) Act 1935–1950. The primary objective of this legislation was to address the financial distress experienced by farmers due to drought and other agricultural challenges. This Act allows for the adjustment of farmers' debts and provides financial relief through the allocation of funds. The Act also seeks to ensure that funds granted to states under this legislation can be utilised for rural reconstruction purposes, as stipulated under the States Grants (Rural Reconstruction) Act 1971. Additionally, it recognises pre-existing payments made by the State of Tasmania for drought relief as part of the funds granted under this Act, ensuring that these payments are accounted for in the financial adjustments.
The Loan (Farmers’ Debt Adjustment) Act 1971 modifies the Principal Act by expanding the permissible uses of granted funds, including their application for rural reconstruction and the recognition of pre-existing drought relief payments by Tasmania. It also repeals section 9 of the Principal Act and amends section 10 to protect payments to creditors under the Bankruptcy Act 1966. This Act demonstrates the Commonwealth's commitment to supporting farmers through financial adjustments and ensuring that the necessary relief is provided in a structured and legally recognised manner.
Scope and Application
The Loan (Farmers’ Debt Adjustment) Act 1971 applies to the states and territories of Australia, particularly focusing on the allocation and use of funds granted under this Act to support farmers facing financial difficulties. The Act amends the Loan (Farmers’ Debt Adjustment) Act 1935–1950, now referred to as the Principal Act, to provide additional flexibility in the application of funds granted to states for rural reconstruction purposes. The Act also incorporates specific provisions for the State of Tasmania, recognising pre-existing payments made to farmers for drought relief as part of the funds granted under this Act. The geographic reach of the Act is national, applying across all states and territories of Australia, with the aim of providing financial assistance and restructuring options to farmers in distress. While the Act primarily addresses the allocation of funds and their permissible uses, it excludes any transactions or conduct not specified within its provisions, and the application of these funds is subject to the conditions outlined within the Act. The Act allows for the extension and restriction of its application through subordinate instruments, which may further define the scope and operational details of the financial assistance provided.
Key Provisions
The Loan (Farmers’ Debt Adjustment) Act 1971 makes several key amendments to the existing Loan (Farmers’ Debt Adjustment) Act 1935–1950, which is referred to as the Principal Act in this new legislation. Section 3 of the new Act alters the application of funds provided under section 6 of the Principal Act, modifying how these funds can be utilised by the states. Specifically, section 7a allows states to use these funds for purposes similar to those permitted under the States Grants (Rural Reconstruction) Act 1971, with certain exceptions. This means that states can now employ the granted moneys for broader rural reconstruction activities, subject to specific conditions. Additionally, section 7b acknowledges a pre-existing payment made by the State of Tasmania for drought relief, treating it as if it had been made under the terms of this Act.
The Act imposes several obligations on the parties it governs. For instance, section 7a stipulates that while states can use the funds for a broader range of purposes, they must still comply with the overarching conditions set out in section 7a of the Act. Moreover, any repayments of these funds must still be used for the specified purposes, ensuring that the financial assistance provided maintains its intended impact. Section 7b ensures that a specific payment made by Tasmania is recognised under the Act, maintaining the legitimacy and traceability of these funds.
Failure to comply with the provisions of this Act can lead to various consequences. Although the Act itself does not explicitly detail penalties for breaches, breaches of similar legislative frameworks often result in legal actions that can include fines or other civil remedies. Additionally, if the misuse of funds leads to fraudulent activities or breaches of other related legislation, such as the Bankruptcy Act 1966, the perpetrators may face criminal charges, including imprisonment, reflecting the serious nature of financial mismanagement in public funds.