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1998-1999-2000
THE
PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE
OF REPRESENTATIVES
FARM HOUSEHOLD
SUPPORT AMENDMENT BILL
2000
EXPLANATORY
MEMORANDUM
(Circulated by authority of the
Minister for Agriculture, Fisheries and Forestry,
the Hon Warren Truss
MP)
ISBN: 0642 452490
FARM HOUSEHOLD SUPPORT AMENDMENT BILL
2000
GENERAL OUTLINE
1. The Government
provided funding in the 2000-01 Budget to extend all elements of the ‘Farm
Help – Supporting Families Through Change’ program to 30 November
2003 and for program enhancements. The enhancements to the program are
consistent with the findings of a comprehensive review of the Farm Family
Restart Scheme finalised in March 2000. The enhancements to Farm Help include a
retraining grant of $3,500, case management of Farm Help clients, and an
increase in the net assets threshold for re-establishment grant
recipients.
2. The Farm Household Support Amendment Bill 2000
contains amendments to the Farm Household Support Act 1992 to provide
for these enhancements. The amendments include changing the program name from
the Farm Family Restart Scheme (FFRS) to ‘Farm Help – Supporting
Families Through Change’, which will require the word
‘restart’ to be replaced with ‘Farm Help’ wherever it
occurs in legislation; extending the Farm Help income support application
deadline to 30 November 2003 from the current deadline of 30 November 2001,
with payments being made until 30 November 2004; and, as part of the case
management of Farm Help clients, the compulsory provision for the development of
activity plans for those farmers who are assessed as non-viable.
3. The
Bill includes subsequential amendments to the Health Insurance
Act 1973, the Income Tax Assessment Act 1936, the Income
Tax Assessment Act 1997, the Bankruptcy Act 1966 and the Social
Security Act 1991 to give effect to the renaming of FFRS to Farm
Help.
4. Amendments to the Farm Household Support Act 1992
Disallowable Instruments will be required to provide for the remaining
program enhancements. These include provision for a retraining grant of $3,500
for those farmers who have received the re-establishment grant, provision for
the exercise of Ministerial discretion for the payment of re-establishment
grants in exceptional cases when the sale of the farm occurs after the 12 month
period usually allowed to complete the sale, amendments required for the
compulsory development of activity plans by non-viable farmers, and the change
of the program name. Further amendments will also be required to the
Disallowable Instruments to maintain consistency with the Dairy Exit Program.
5. The extension of the re-establishment grant application deadline to
30 November 2003 and the increase in the net assets threshold for the
re-establishment grant have already been implemented through an amendment to the
restart re-establishment grant disallowable instrument (Restart
Re-establishment Grant Scheme Amendment 2000 (No. 2)). The voluntary case
management of Farm Help clients will be phased in from 1 September 2000
through administrative procedures.
FINANCIAL IMPACT
STATEMENT
6. Funding for the extension and enhancement of Farm
Help was approved in the 2000-01 Budget. Funds of $111.2 million have been
allocated to the program over 4 years to 30 June 2004.
NOTES ON
CLAUSES
Clause 1 - Short title
7. This
clause provides for the Act to be cited as the Farm Household Support
Amendment Act 2000.
Clause 2 -
Commencement
8. This clause provides for the short title and this
clause to commence on the day that the Act receives Royal Assent. The clause
also provides for the Act to commence on a Proclamation date. This will allow
for the associated amendments to the Act’s Disallowable Instruments to be
implemented and commence on the same day. Should a provision of the Act not
commence within 6 months of the Royal Assent, it will commence on the first day
after the end of that period.
Clause 3 –
Schedule(s)
9. This clause provides for the Farm Household
Support Act 1992, the Health Insurance Act 1973, the
Income Tax Assessment Act 1936, the Income Tax Assessment Act
1997, the Bankruptcy Act 1966 and the Social Security
Act 1991, to be amended in accordance with the applicable items in the
Schedule, subject to commencement of the Act. Any other item in a Schedule to
this Act has effect according to its terms.
Schedule 1 - Amendment
of the Farm Household Support Act 1992
Item 1:
Subsection 3(2) (definition of exempt livestock
proceeds)
10. This item omits ‘restart’ and
substitutes ‘farm help’.
Item 2: Subsection
3(2)
11. This item inserts the definition of the farm help advice
scheme, which is the scheme referred to in section 52B.
Item 3:
Subsection 3(2)
12. This items inserts the definition of the farm
help re-establishment grant scheme, which is the scheme referred to in section
52A.
Item 4: Subsection 3(2)
13. This item inserts the
definition of the farm help scheme payment commencement day, which is the day on
which item 2 of Schedule 1 to the Farm Household Support Amendment Act
2000 commences – this will be a proclamation date.
Item 5:
Subsection 3(2)
14. This item inserts the definition of farm help
scheme payments, which are payments of the following kinds:
(a) payments of
farm help income support;
(b) payments of re-establishment
grants;
(c) payments of assistance under the farm help advice
scheme.
Item 6: Subsection 3(2) (definition of re-establishment
grant)
15. This item omits ‘restart’ and substitutes
‘farm help’.
Item 7: Subsection 3(2) (definition of
restart advice scheme)
16. This item repeals the definition of
restart advice scheme.
Item 8: Subsection 3(2) (definition of
restart re-establishment grant scheme)
17. This item repeals
the definition of restart re-establishment grant scheme.
Item
9: Subsection 3(2) (definition of restart scheme payment commencement
date)
18. This item repeals the definition of restart scheme
payment commencement date as it is no longer required in the Act with the
renaming of the Farm Family Restart Scheme to ‘Farm Help –
Supporting Families Through Change’.
Item 10: Subsection 3(2)
(definition of restart scheme payments)
19. This item repeals
the definition of restart scheme payments.
Item 11: Paragraph
4(2)(a)
20. This item omits ‘restart’ and substitutes
‘farm help’.
Item 12: Subsection 4(4) (paragraph (b) of
the definition of relevant Secretary)
21. This item omits
‘restart’ and substitutes ‘farm help’.
Item 13: Section 4A
22. This item repeals the section
‘The restart scheme payment commencement day’ as it is no longer
required in the Act.
Item 14: Part 1A (heading)
23. This item omits
‘restart’ and substitutes ‘farm help’.
Item
15: Section 6B
24. This item omits ‘Restart’ and
substitutes ‘Farm help’. The heading is altered by omitting
‘restart’ and substituting ‘farm help’.
Item 16: Paragraph 6B(a)
25. This item omits all the words from
and including “more” and substitutes “is after 30 November
2003; or” to extend the farm help income support application deadline to
30 November 2003.
Item 17: Paragraph 6B(b)
26. This item
omits all the words from and including “more” and substitutes
“after 30 November 2004.” This extends the farm help income support
payment closing date to 30 November 2004.
Item 18: Part 2
(heading)
27. This item omits ‘restart’ and substitutes
‘farm help’ in the heading.
Item 19: Division 1B of
Part 2
28. This item omits ‘restart’ and substitutes
‘farm help’.
Item 20: Section
8B
29. This item omits any occurrences of ‘restart’ and
substitutes ‘farm help’ in the heading and text that
follows.
Item 21: Section 8B (note)
30. This item
omits ‘restart’ and substitutes ‘farm
help’.
Item 22: Section 8C
31. This item omits any
occurrences of ‘restart’ and substitutes ‘farm
help’.
Item 23: Section 8D, Item 24: Section
8E
32. These items omit any occurrences of ‘restart’ and
substitute ‘farm help’ in the headings and text.
Item 25:
Division 2 of Part 2 (heading)
33. This item omits
‘restart’ and substitutes ‘farm help’ in the
heading.
Item 26: Subsection 9(3)
34. This item omits
‘Restart’ and substitutes ‘Farm help’.
Item
27: Subsection 9(3)
35. This item omits any occurrences of
‘restart’ and substitutes ‘farm help’.
Item
28: Section 9B
36. This item omits ‘Restart’ and
substitutes ‘Farm help’ in the heading and text.
Item 29:
Section 9B (note)
37. This item omits ‘restart’ and
substitutes ‘farm help’.
Item 30: Sections 10,11, 12, 13
and 13A
38. These items omit any occurrences of ‘restart’
and substitute ‘farm help’.
39. This item inserts Section 13B to implement the Government’s
decision that the development of activity plans by Farm Help clients whose farms
have been assessed as non-viable is compulsory. These clauses relate to persons
whom farm help income support is payable.
(1) Provides for the direction by
the Secretary for the development of an individual activity plan, which is to be
acted in accordance with, by those persons to whom farm help income support is
payable. The direction is to be known as an activity plan
direction.
(2) Provides for the Secretary’s direction to only
be made if a person’s farm has been assessed as not viable under advice
received through the farm help advice scheme or the farm help re-establishment
grant scheme.
(3) Provides that the plan developed must be directed towards
returning the farm to a viable position or securing alternative employment for
the farmer.
(4) Provides for assistance for Farm Help clients to develop an
activity plan in accordance with the guidelines for the farm help advice scheme
covered by paragraph 52B(3)(b).
(5) Provides for the consequences of the
continued payability of farm help income support if a Farm Help client does not
comply with the Secretary’s direction. These consequences are in
accordance with the guidelines for the farm help advice scheme covered by
paragraph 52B(3)(c).
Item 32: Part 3 (heading)
40. This
item omits ‘restart’ and substitutes ‘farm help’ in the
heading.
41. This item omits any occurrences of ‘restart’ and
substitutes ‘farm help’.
Item 34: Part 4 (heading), Item
35: Division 3 of Part 4 (heading)
42. This item omits ‘restart’ and substitutes ‘farm
help’ in the headings.
Item 36: Subsection 24B(1)
43. This item omits ‘restart’ and substitutes ‘farm
help’ in the heading and text.
Item 37: Part 5
(heading)
44. This item omits ‘restart’ and substitutes
‘farm help’ in the heading.
Item 38: Subsection
25(3)
45. This item omits ‘Restart’ and substitutes
‘Farm help’.
Item 39: Subsection 25(3)
46. This
item omits ‘restart’ and substitutes ‘farm
help’.
Item 40: Section 26B
47. This item omits any occurrences of
‘Restart’ and substitutes ‘Farm help’ in the heading and
text.
48. This item omits any occurrences of ‘restart’ and
substitutes ‘farm help’.
Item 42: Section 29B (formula), Item 43: Section 29B (note
2)
49. This item omits any occurrences of ‘restart’ and
substitutes ‘farm help’ in the heading, formula and text.
Item 44: Sections 31, 33, 41 and 42
50. This item omits any
occurrences of ‘restart’ and substitutes ‘farm help’,
including the heading to section 42.
Item 45: Part 8
(heading)
51. This item omits ‘restart’ and substitutes
‘farm help’ in the heading.
Item 46: Sections 43, 44,
45, 46, 47, 48 and 49
52. This item omits any occurrences of
‘restart’ and substitutes ‘farm help’.
Item
47: Subsection 48(3)
53. This item omits ‘Restart’ and
substitutes ‘Farm help’ in the heading.
Item 48: Part 8A
(heading)
54. This item omits ‘restart’ and substitutes
‘farm help’ in the heading.
Item 49: Sections 49A and 49D
55. This item omits any
occurrences of ‘restart’ and substitutes ‘farm help’ in
the headings and text that follows.
Item 50: Part 9A (heading)
56. This item omits
‘Restart’ and substitutes ‘Farm help’ in the
heading.
Item 51: Section 52A(1)(a)
57. This item omits
“, after the restart scheme payment commencement day,”, and
substitutes “, after 1 December 1997,” to clearly define the payment
commencement date.
Item 52: Section 52A(1)
58. This item
renames the restart re-establishment scheme as the farm help re-establishment
grant scheme, and states the scheme should be known by this name on and after
the farm help scheme payment commencement day. The heading is altered to omit
‘Restart’ and substitute ‘Farm help’.
Item 53:
After subsection 52A(3)
59. These clauses have been inserted to
implement the Government’s decision that the development of activity plans
by Farm Help clients whose farms have been assessed as non-viable is compulsory.
These clauses relate to re-establishment grant applicants.
60. (3A) This
clause inserts text to provide for the Secretary to direct a re-establishment
grant applicant to develop and act in accordance with an individual activity
plan. This direction is to be known as an activity plan
direction.
(3B) This clause inserts text to ensure that the Secretary
may only direct a person to develop an activity plan if their farm has been
assessed as not viable under advice given under the farm help advice scheme
(subsection 13A(1) or 52A(3)).
(3C) This clause inserts text to ensure that the plan developed must be directed towards assisting the directed person to return the farm to a viable position or to secure alternative employment.
Item 54: Subsections 52A(4) and (5)
61. This item provides
for the insertion of the text “or (3A)” after “(3)” to
ensure that in accordance with the farm help advice scheme, persons directed to
develop an activity plan under 52A(3A) are provided with assistance (52A(4)),
and provision is made for the consequences for those persons who do not comply
with the direction to develop an activity plan (52A(5)) which is in accordance
with the farm help advice scheme.
Item 55: Part 9B
(heading)
62. This item omits ‘Restart’ and substitutes
‘Farm help’ in the heading.
Item 56: Subsection
52B(1)
63. This item renames the restart advice scheme as the farm
help advice scheme, and states the scheme should be known by this name on and
after the farm help scheme payment commencement day. The heading is altered to
omit ‘Restart’ and substitute ‘Farm
help’.
Item 57: Paragraph 52B(3)(b)
64. This item
ensures that persons directed to develop an activity plan under 13B(1) or
52A(3A) are provided with assistance in accordance with the farm help advice
scheme.
Item 58: Paragraph 52B(3)(c)
65. This item provides
for the consequences for those persons who do not comply with the direction to
develop an activity plan under subsection 13B(1) or 52A(3A) in accordance with
the farm help advice scheme.
Item 59: Sections 54, 44, 55A, 56,
66. These items omit any occurrences of ‘restart’ and
substitutes ‘farm help’ in the text and heading.
Item 60:
Section 56 (note)
67. This item omits ‘restart’ and
substitutes ‘farm help’.
Item 61: Section
57
68. This item omits ‘Restart’ and substitutes
‘Farm help’.
Schedule 2 – Consequential amendments of other Acts
Bankruptcy Act 1966
Item 1: Paragraph
116(2)(mca)
69. This item omits ‘restart’ and substitutes
‘farm help’.
Health Insurance Act
1973
Item 2: Subsections 5DA(1) and (2)
70. This
item omits ‘restart’ and substitutes ‘farm help’. The
heading for section 5DA is altered by omitting ‘restart’ and
substituting ‘farm help’.
Item 3: Subsection
5DA(4)
71. This item inserts the definition of farm help income
support.
Item 4: Subsection 5DA(4) (definition of restart income
support)
72. This item repeals the definition of restart income
support.
Income Tax Assessment Act 1936
Item 5:
Subsection 79A(4) (paragraph (b) of the definition of prescribed
allowance)
73. This item omits any occurrences of
‘restart’ and substitutes ‘farm help’.
Item 6:
Subsection 160AAA(1) (paragraph (da) of the definition of rebatable
benefit)
74. This item omits ‘restart’ and
substitutes ‘farm help’.
Income Tax Assessment Act
1997
Item 7: Section 11-15 (table item headed “social
security or like payments”)
75. This item inserts a reference
to farm help income support.
Item 8: Section 11-15 (table item headed
“social security or like payments”)
76. This item omits a
reference to restart income support.
Item 9: Section 13-1
(table)
77. This item inserts a reference to farm help income
support.
Item 10: Section 13-1 (table item headed “primary
production”)
78. This item inserts a reference to farm help
income support payments.
Item 11: Section 13-1 (table item headed
“primary production”)
79. This item omits a reference to
restart income support payments.
Item 12: Section 13-1 (table item
headed “restart income support”)
80. This item repeals
the table item headed “restart income support”.
Item 13:
Section 13-1 (table item headed “social security and other benefit
payments”)
81. This item inserts a reference to farm help
income support.
Item 14: Section 13-1 (table item headed “social
security and other benefit payments”)
82. This item omits a
reference to restart income support.
Item 15: Section 53-10 (table
items 3 and 4, column headed “This type of
payment”)
83. This item omits any occurrences of
‘restart’ and substitutes ‘farm help’.
Item
16: Section 53-15 (heading)
84. This item omits ‘restart’
and substitutes ‘farm help’.
Item 17: Section
53-15(1)
85. This item omits any occurrences of ‘restart’
and substitutes ‘farm help’.
Item 18: Section
53-25
86. This item omits “52 or” to retain consistency
with taxation policy to remove redundant provisions or material from the body of
taxation law. Section 52 of the Farm Household Support Act 1992 was
repealed by the Primary Industries and Energy Legislation Amendment Act (No.
1) 1998 with effect from 30 July 1998.
Item 19: Section 995-1
(definition of supplementary amount, table item 2)
87. This
item omits ‘restart’ and substitutes ‘farm
help’.
Social Security Act 1991
Item 20:
Sections 1227A and 1231A
88. This item omits any occurrences of
‘restart’ and substitutes ‘farm help’. The headings for
both sections are altered by omitting ‘restart’ and substituting
‘farm help’.
Schedule 3 – Transitional provisions relating to farm help income support and the farm help re-establishment grant scheme
Part 1 – Transitional provisions relating to Schedule
1
Item 1: Restart beneficiaries automatically entitled to farm
help
89. This item allows for persons receiving restart income
support immediately before the farm help commencement date to automatically
receive farm help income support on and after the farm help commencement day
without having to reapply for farm help income support. This transition is made
in accordance with the provisions of the amended FHS Act.
Item 2:
Payments of restart income support taken to be farm help income
support
90. This item clarifies that restart income support payments
made before the farm help commencement day are to be treated as farm help income
support payments in relation to the farm help re-establishment grant scheme, the
farm help advice scheme, the DEP scheme and the qualification requirements for
farm help income support (sections 8D and 8E).
Item 3: Effect of
directions etc.
91. This item states that if a person was given a
direction by the Secretary to obtain advice under section 13A or the restart
re-establishment grant scheme before the farm help payment commencement day, the
direction will still apply after the farm help payment commencement day for
section 13A, the farm help re-establishment scheme and the farm help advice
scheme as if the direction had been given under the amended FHS Act or the farm
help re-establishment grant scheme, as the case requires.
Item 4:
Claims made but not determined before farm help payment commencement
date
92. This item clarifies that any claims for restart income
support or applications or requests for restart re-establishment grants made but
not determined before the farm help payment commencement day will be treated as
claims for farm help income support or applications or requests for farm help
re-establishment grants after the farm help payment commencement day.
Item 5: References to decisions in section 20
93. This
item clarifies that any decisions rejecting a person’s claim for farm help
income support made before the farm help payment commencement date in accordance
with section 20 will continue to have effect after the farm help payment
commencement date.
Item 6: Part 10
94. This item states
that any references to restart income support in relation to part 10 made before
the farm help payment commencement date have effect after the farm help payment
commencement date as references to farm help income support.
Part 2
– Transitional provisions relating to Schedule 2
Item 7:
Transitional provision
95. This item reflects transitional provisions
for consequential amendments. Paragraph 116(2)(mca) of the Bankruptcy Act
1966 provides for references to restart re-establishment grants to be
included in references to farm help re-establishment grants after the farm help
payment commencement day.
96. Section 5DA of the Health Insurance Act
1973 provides for restart income support to be included in references to
farm help income support after the farm help payment commencement day.
97. Payments of restart income support made before the farm help payment
commencement day continue to have effect in relation to the Income Tax
Assessment Act 1936 and the Income Tax Assessment Act 1997 as if the
repeals and amendments made by Schedule 2 had not happened.
98. Sections
1227A and 1231A of the Social Security Act 1991 provide for restart
income support to be included in references to farm help income support after
the farm help payment commencement day.
Part 3 –
Definitions
Item 8: Definitions
99. This item provides
definitions for the amended FHS Act, restart income support and
restart re-establishment grant in relation to the commencement of the
Farm Household Support Amendment Act 2000.