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This is a Bill, not an Act. For current law, see the Acts databases.
2019
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Farm Household Support Amendment
(Relief Measures) Bill (No. 1) 2019
No. , 2019
(Agriculture)
A Bill for an Act to amend the
Farm Household
Support Act 2014
, and for related purposes
No. , 2019
Farm Household Support Amendment (Relief Measures) Bill (No. 1)
2019
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedules ........................................................................................... 2
Schedule 1--Time limit on payment
3
Farm Household Support Act 2014
3
Schedule 2--Farm business losses
5
Farm Household Support Act 2014
5
Farm Household Support Minister's Rule 2014
5
Schedule 3--Relief payment
8
Farm Household Support Act 2014
8
Social Security (Administration) Act 1999
11
No. , 2019
Farm Household Support Amendment (Relief Measures) Bill (No. 1)
2019
1
A Bill for an Act to amend the
Farm Household
1
Support Act 2014
, and for related purposes
2
The Parliament of Australia enacts:
3
1 Short title
4
This Act is the
Farm Household Support Amendment (Relief
5
Measures) Act (No. 1) 2019
.
6
2 Commencement
7
(1) Each provision of this Act specified in column 1 of the table
8
commences, or is taken to have commenced, in accordance with
9
column 2 of the table. Any other statement in column 2 has effect
10
according to its terms.
11
12
2
Farm Household Support Amendment (Relief Measures) Bill (No. 1)
2019
No. , 2019
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.
Note:
This table relates only to the provisions of this Act as originally
1
enacted. It will not be amended to deal with any later amendments of
2
this Act.
3
(2) Any information in column 3 of the table is not part of this Act.
4
Information may be inserted in this column, or information in it
5
may be edited, in any published version of this Act.
6
3 Schedules
7
Legislation that is specified in a Schedule to this Act is amended or
8
repealed as set out in the applicable items in the Schedule
9
concerned, and any other item in a Schedule to this Act has effect
10
according to its terms.
11
Note:
The provisions of the
Farm Household Support Minister's Rule 2014
12
amended or inserted by this Act, and any other provisions of that
13
instrument, may be amended or repealed by an instrument made under
14
subsection 106(1) of the
Farm Household Support Act 2014
(see
15
subsection 13(5) of the
Legislation Act 2003
).
16
Time limit on payment
Schedule 1
No. , 2019
Farm Household Support Amendment (Relief Measures) Bill (No. 1)
2019
3
Schedule 1--Time limit on payment
1
2
Farm Household Support Act 2014
3
1 Paragraph 3(a)
4
After "up to 4 years", insert "in each specified 10 year period".
5
2 Section 4
6
Omit:
7
(a)
farm household allowance for up to 4 years; and
8
substitute:
9
(a)
farm household allowance for up to 4 years in each
10
specified 10 year period; and
11
3 Subsection 5(1)
12
Repeal the following definitions:
13
(a) definition of
4 years or less
;
14
(b) definition of
cumulative period of farm household
15
allowance
.
16
4 Subsection 5(1)
17
Insert:
18
meets the 4 years or less requirement
has the meaning given by
19
subsection 6(1A).
20
specified 10 year period
has the meaning given by subsection 6(1).
21
5 Section 6 (heading)
22
Repeal the heading, substitute:
23
Schedule 1
Time limit on payment
4
Farm Household Support Amendment (Relief Measures) Bill (No. 1)
2019
No. , 2019
6 Meanings of
specified 10 year period
and
meets the 4 years or less
1
requirement
2
6 Subsection 6(1)
3
Repeal the subsection, substitute:
4
Meaning of
specified 10 year period
5
(1) A
specified 10 year period
is a period of 10 years beginning on:
6
(a) 1 July 2014; or
7
(b) a tenth anniversary of 1 July 2014.
8
Meaning of
meets the 4 years or less requirement
9
(1A) A person
meets the 4 years or less requirement
on a day in a
10
period mentioned in section 8 or 9 if, on that day, the total number
11
of days for which farm household allowance is payable to the
12
person, in the specified 10 year period in which that day falls, does
13
not exceed 1,460 days (assuming farm household allowance is
14
payable to the person on that day).
15
7 Subsection 6(3)
16
Repeal the subsection.
17
8 Section 7
18
After "4 years", insert "in each specified 10 year period".
19
9 Paragraph 8(h)
20
Repeal the paragraph, substitute:
21
(h) the person meets the 4 years or less requirement.
22
10 Paragraph 9(j)
23
Repeal the paragraph, substitute:
24
(j) the person meets the 4 years or less requirement.
25
11 Subsections 96(1) and (2)
26
Omit "person's cumulative period of farm household allowance is more
27
than 4 years", substitute "person does not meet the 4 years or less
28
requirement".
29
Farm business losses
Schedule 2
No. , 2019
Farm Household Support Amendment (Relief Measures) Bill (No. 1)
2019
5
Schedule 2--Farm business losses
1
2
Farm Household Support Act 2014
3
1 Section 67
4
Repeal the section, substitute:
5
67 Allowable deductions from ordinary income
6
For the purpose of working out the rate of farm household
7
allowance for a person, the person's ordinary income for a tax
8
year, worked out under Part 3.10 of the Social Security Act, is to
9
be reduced in accordance with Minister's rules made for the
10
purposes of this section.
11
Farm Household Support Minister's Rule 2014
12
2 Section 4
13
Insert:
14
amount
, of the loss from a farm business, has the meaning given
15
by subsection 7B(4).
16
directly related
, in relation to a business that is a farm enterprise,
17
has the meaning given by subsection 7B(2).
18
farm business
has the meaning given by subsection 7B(1).
19
income
, from a farm business, has the meaning given by
20
subsection 7B(5).
21
operates at a loss
, in relation to a farm business, has the meaning
22
given by subsection 7B(3).
23
reductions
, for a farm business, has the meaning given by
24
subsection 7B(6).
25
3 Part 2
26
Repeal the Part, substitute:
27
Schedule 2
Farm business losses
6
Farm Household Support Amendment (Relief Measures) Bill (No. 1)
2019
No. , 2019
Part 2--Farm household allowance--farm business
1
losses
2
3
6 Operation of Part
4
For the purposes of section 67 of the Act, this Part applies if a farm
5
business operates at a loss for a tax year.
6
Note:
For
farm business
and
operates at a loss
, see section 7B.
7
7 Farm business loss to be used to reduce ordinary income
8
The ordinary incomes of the person who carries on the farm
9
business, and the person's partner (if any), for the tax year are to be
10
reduced by the amount of the loss, subject to the limits set out in
11
section 7A.
12
Note:
For the
amount
of the loss, see section 7B.
13
7A Limits on use of loss
14
(1) The total amount of the loss used to reduce the ordinary incomes of
15
the person, and the person's partner (if any), must not exceed
16
$100,000.
17
Example: If the person has a partner, and the ordinary income of the person has
18
been reduced by $60,000, the ordinary income of the person's partner
19
must not be reduced by more than $40,000.
20
(2) Neither the person's, nor the person's partner's, ordinary income
21
may be reduced below zero.
22
Farm businesses carried on with other persons
23
(3) If the farm business is carried on with other persons, the other
24
persons' portions of the loss must not be used to reduce the
25
ordinary incomes of the persons mentioned in section 7.
26
7B Definitions
27
(1) A
farm business
:
28
(a) is a business that is a farm enterprise; and
29
Farm business losses
Schedule 2
No. , 2019
Farm Household Support Amendment (Relief Measures) Bill (No. 1)
2019
7
(b) includes any directly related business.
1
(2) A business is
directly related
to a business that is a farm enterprise
2
if the operation of both businesses relies to a large extent on the
3
use of shared equipment or other shared physical assets.
4
(3) A farm business
operates at a loss
for a tax year if the income from
5
the farm business for the tax year is less than the reductions for the
6
farm business for the tax year.
7
(4) The
amount
of the loss is the difference between the income and
8
the reductions.
9
(5) The
income
from a farm business for a tax year is:
10
(a) the ordinary income for a person from the farm business for
11
the tax year worked out under Part 3.10 of the Social Security
12
Act assuming the person were the only person carrying on
13
the farm business; but
14
(b) without any reductions under Division 1A of that Part.
15
(6) The
reductions
for a farm business for a tax year are the reductions
16
that would be made from a person's ordinary income from the farm
17
business for the tax year under Division 1A of Part 3.10 of the
18
Social Security Act assuming:
19
(a) the person were the only person carrying on the farm
20
business; and
21
(b) the income from the farm business for the tax year exceeded
22
the reductions.
23
Schedule 3
Relief payment
8
Farm Household Support Amendment (Relief Measures) Bill (No. 1)
2019
No. , 2019
Schedule 3--Relief payment
1
2
Farm Household Support Act 2014
3
1 Section 4
4
Omit:
5
(d)
additional funding (called the FHA supplement) for
6
persons to whom farm household allowance is payable
7
at any time between 1 September 2018 and 1 June 2019.
8
substitute:
9
(d)
additional funding (called the FHA supplement) for a
10
person to whom farm household allowance is payable at
11
any time between 1 September 2018 and 1 June 2019;
12
and
13
(e)
a relief payment for a person if 1,460 days of farm
14
household allowance have been payable to the person
15
before 1 July 2020; and
16
(f)
if the Minister's rules prescribe other circumstances in
17
which a relief payment may be made--a relief payment
18
for a person in those circumstances.
19
2 Subsection 5(1)
20
Insert:
21
relief payment
means an amount payable under Part 4B.
22
3 After Part 4A
23
Insert:
24
Part 4B--Relief payments
25
26
89D Simplified outline of this Part
27
This Part is about relief payments.
28
Relief payment
Schedule 3
No. , 2019
Farm Household Support Amendment (Relief Measures) Bill (No. 1)
2019
9
A person qualifies for a relief payment if 1,460 days of farm
1
household allowance have been payable to the person before 1 July
2
2020.
3
The Minister's rules may also prescribe circumstances in which
4
other relief payments may be made.
5
A claim is not required for a relief payment. The rules dealing with
6
how relief payments are made and review of decisions relating to
7
relief payments are found in the Social Security Act and the Social
8
Security Administration Act. (This is because Part 5 of this Act
9
applies the Social Security Act and the Social Security
10
Administration Act in relation to relief payments.)
11
89E Qualification for relief payment
12
(1) A person is qualified for a relief payment if 1,460 days of farm
13
household allowance have been payable to the person before 1 July
14
2020.
15
(2) A person also qualifies for a relief payment in the circumstances (if
16
any) prescribed by the Minister's rules.
17
89F Amount of relief payment
18
(1) The amount of relief payment under subsection 89E(1) for a person
19
is:
20
(a) if the person's rate of farm household allowance on the
21
1,460th day that farm household allowance was payable to
22
the person was calculated by reference to the person being a
23
member of a couple--$6,500; or
24
(b) otherwise--$7,500.
25
(2) The amount of relief payment under subsection 89E(2) for a person
26
in circumstances prescribed by the Minister's rules is the amount
27
prescribed by the Minister's rules for the relief payment for those
28
circumstances.
29
Schedule 3
Relief payment
10
Farm Household Support Amendment (Relief Measures) Bill (No. 1)
2019
No. , 2019
Overpayments of relief payments are not debts
1
(3) If:
2
(a) an amount of relief payment under subsection 89E(1) or (2)
3
is paid to a person; and
4
(b) the amount should not have been paid to the person;
5
the amount is not a debt due to the Commonwealth.
6
(4) Subsection (3) does not apply to an amount of relief payment
7
obtained by fraud.
8
4 Section 90
9
Omit:
10
The farm household allowance, the activity supplement, the farm
11
financial assessment supplement and the FHA supplement are all
12
treated as if they were social security payments. As a result, the
13
general rules in the Social Security Act and Social Security
14
Administration Act relating to claims, how payments are made and
15
review of decisions apply in relation payments under this Act.
16
substitute:
17
The farm household allowance, the activity supplement, the farm
18
financial assessment supplement, the FHA supplement and a relief
19
payment are all treated as if they were social security payments. As
20
a result, the general rules in the Social Security Act and Social
21
Security Administration Act relating to claims, how payments are
22
made and review of decisions apply in relation to payments under
23
this Act.
24
5 Section 91 (example)
25
Omit "farm financial assessment supplement and FHA supplement",
26
substitute "farm financial assessment supplement, FHA supplement and
27
relief payment".
28
Relief payment
Schedule 3
No. , 2019
Farm Household Support Amendment (Relief Measures) Bill (No. 1)
2019
11
6 Subsection 93(1) (table item 6)
1
Omit "farm financial assessment supplement and FHA supplement",
2
substitute "farm financial assessment supplement, FHA supplement and
3
relief payment".
4
7 Section 95 (table item 14)
5
After "FHA supplement", insert "or relief payment".
6
8 Subsection 105(3)
7
Omit "Division 3 of Part 4 (farm financial assessment supplement) or
8
Part 4A (FHA supplement)", substitute "Division 3 of Part 4 (farm
9
financial assessment supplement), Part 4A (FHA supplement) or
10
Part 4B (relief payment)".
11
Social Security (Administration) Act 1999
12
9 Section 12L
13
Repeal the section, substitute:
14
12L FHA supplement and relief payment
15
A claim is not required for FHA supplement or relief payment.
16
10 Subsection 47(1) (after paragraph (hx) of the definition of
17
lump sum benefit
)
18
Insert:
19
(hy) relief payment; or
20
11 Section 47CB (at the end of the heading)
21
Add "
or relief payment
".
22
12 Section 47CB
23
Omit "FHA supplement for a qualifying period (within the meaning of
24
the
Farm Household Support Act 2014
), the Secretary must pay the
25
supplement", substitute "FHA supplement for a qualifying period
26
(within the meaning of the
Farm Household Support Act 2014
), or relief
27
payment, the Secretary must pay the supplement or payment".
28
Schedule 3
Relief payment
12
Farm Household Support Amendment (Relief Measures) Bill (No. 1)
2019
No. , 2019
13 Subclause 1(1) of Schedule 1
1
Insert:
2
relief payment
has the meaning given by the
Farm Household
3
Support Act 2014
.
4