EXPLANATORY STATEMENT

 

Select Legislative Instrument 2006 No. 205

 

Issued by Authority of the Minister for Agriculture, Fisheries and Forestry

 

Farm Household Support Act 1992

 

 

Farm Household Support Amendment Regulations 2006 (No. 1)

 

 

Section 58 of the Farm Household Support Act 1992 (the Act) provides, in part, that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

 

Through Exceptional Circumstances Relief Payments, the Government provides fortnightly income support to farmers in Exceptional Circumstances declared regions or industries experiencing a severe and prolonged downturn in farm income due to a rare and severe climatic event, such as drought. This targeted assistance is intended to help eligible farmers with their everyday living expenses, while ensuring that farmers with long-term prospects for viability will not be forced off their land due to short-term adverse events that are beyond their capacity to manage.

 

Section 24A(4) of the Act provides for $10,000 in off-farm salary and wages to be disregarded from a person's income for the purposes of calculating a rate of Exceptional Circumstances Relief Payment; or if the person is a member of a couple, to be disregarded from the income of the person and the person's partner for the purposes of calculating a rate of Exceptional Circumstances Relief Payment, until 30 June 2006. Paragraph 24A(4)(b) of the Act provides that a later closing day for the cessation of the off-farm salary and wages exemption may be prescribed.

 

The Regulations prescribe a later closing date for the off-farm salary and wages exemption, through Regulation 6 of the Farm Household Support Regulations 1993:

 

Exceptional circumstances relief payment -- closing date (Act s 24A)

For paragraph 24A(4)(b) of the Act, the closing date is 30 June 2008.

 

The decision to prescribe a later closing date for the off-farm salary and wages exemption was agreed by Government on 11 July 2006. The Minister for Agriculture, Fisheries and Forestry, the Hon Peter McGauran MP, announced on 14 July 2006 that the off-farm salary and wages exemption would be continued from 30 June 2006. This followed an extensive review process and consultation with other Government departments, including the Departments of the Prime Minister and Cabinet; Finance and Administration; Treasury; Families, Community Services and Indigenous Affairs; Human Services; Employment and Workplace Relations; Transport and Regional Services; Education, Science and Training; and ongoing consultation with Centrelink. The closing date specified in the Regulations was agreed by Government on 18 July 2006.

 

 

 

 

The Government agreed to a later closing date in recognition of the extreme severity and extent of drought conditions; the need for government support; and the importance of off-farm income as a farm management tool during drought. The extension of the off-farm salary and wages exemption allows drought affected producers to supplement their production income with off-farm salary and wages while maintaining eligibility for Exceptional Circumstances Relief Payments. This Government assistance is designed to ensure producers with long-term prospects for viability will not be forced to leave the land due to short-term adverse events that are beyond their ability to manage.

 

The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.

 

The Regulations commenced on the day after registration.