Queensland Consolidated Regulations

RURAL AND REGIONAL ADJUSTMENT REGULATION 2011 - SCHEDULE 40

SCHEDULE 40 – Drought ready and recovery finance loan scheme

Part 1 - Preliminary

1 Objective of scheme

The objective of the scheme is to assist sole traders, partnerships, companies and trusts carrying on primary production enterprises to undertake projects or activities to improve the resilience to drought of the primary production enterprises.

2 Purpose of assistance

The purpose of assistance under the scheme is to assist sole traders, partnerships, companies and trusts carrying on primary production enterprises to pay for eligible projects or eligible recovery activities.

3 Definitions for schedule

In this schedule—

"eligible project" see section 4 .

"eligible recovery activity" see section 5 .

"primary producer" means—

(a) a sole trader who—

(i) spends the majority of the person’s labour on a primary production enterprise; and

(ii) either—

(A) derives the majority of the person’s income from the primary production enterprise; or

(B) in the opinion of the authority, based on the demonstrated production potential of the primary production enterprise, will eventually derive the majority of the person’s income from the primary production enterprise; or

(b) a partnership, proprietary company or trust that carries on a primary production enterprise for which the partners, shareholders or beneficiaries—

(i) spend the majority of their labour on a primary production enterprise; and

(ii) either—

(A) derive the majority of their income from the primary production enterprise; or

(B) in the opinion of the authority, based on the demonstrated production potential of the primary production enterprise, will eventually derive the majority of their income from the primary production enterprise.

(a) that involves primary production, including the agricultural, apicultural, aquacultural, forestry, grazing and horticultural industries; and

(b) for which an entity holds an Australian Business Number.

4 Meaning of eligible project

(1) An
"eligible project" is a project the authority is satisfied—

(a) will involve the purchase and installation of new permanent capital infrastructure; and

(b) will improve the ability of a primary production enterprise to prepare for, continue to operate in, or recover from, drought conditions; and

(c) will not commence before the authority approves assistance under the scheme for the project.

Examples of eligible projects—

• purchase and installation of new pipes, water tanks or water troughs

• construction of a new dam

• installation of more efficient irrigation

• drilling of a new bore

• construction of a new feed store

(2) In this section—

"commence" , an eligible project—

(a) includes purchase items, or engage a contractor or other person, for the construction or installation of an eligible project or part of the project; but

(b) does not include the payment of a deposit for a purchase or engagement mentioned in paragraph (a) .

5 Meaning of eligible recovery activity

(1) An
"eligible recovery activity" is an activity the authority is satisfied—

(a) is replanting, preparing the land for replanting, or restocking; and

(b) will improve the ability of a primary production enterprise to recover from drought conditions; and

(c) will not commence before the authority approves assistance under the scheme for the activity.

(2) In this section—

"replanting" includes—

(a) removing unviable crops, plants or trees; and

(b) purchasing and planting new seed, seedlings or trees; and

(c) purchasing a chemical, fertiliser or soil ameliorant to plant the new seed, seedlings or trees; and

(d) purchasing consumables for the equipment required to plant the new seed, seedlings or trees.

"restocking" includes—

(a) purchasing and vaccinating new stock; and

(b) drenching new stock.

6 Meaning of resilience plan

A
"resilience plan" , for a primary production enterprise, is a plan that the authority is satisfied—

(a) addresses risks relevant to the primary production enterprise, including—

(i) viability risks; and

(ii) productivity risks; and

(iii) business and climate risks, such as drought; and

(b) details the actions the applicant may take to manage the risks relevant to the primary production enterprise to improve the resilience of the primary production enterprise; and

(c) complies with the guidelines for resilience plans under the scheme that are issued by the authority.

Note—

A copy of the guidelines for resilience plans under the scheme may be obtained from the authority.

Part 2 - General provisions of scheme

7 Nature of assistance

(1) The nature of the assistance that may be given to an applicant under the scheme is a loan at a concessional rate of interest to be used to pay for the cost of an eligible project or eligible recovery activity, up to the maximum amount of a loan, or total outstanding loan balance, under the scheme.

(2) In this section—

"cost" , of an eligible project, includes—

(a) charges for freight associated with the eligible project; and

(b) expenses for consumables, including fuel, associated with the eligible project; and

(c) charges for installation associated with the eligible project.

8 Maximum loan amount

The maximum amount of a loan, or total outstanding loan balance, under the scheme is $250,000.

9 Eligibility criteria

(1) An applicant is eligible to receive assistance under the scheme if the authority is satisfied—

(a) the assistance is for a primary production enterprise carried on by a sole trader, partnership, proprietary company or trust; and

(b) the applicant is the sole trader, partnership, proprietary company or trust that is carrying on the primary production enterprise; and

(c) an interested person for the primary production enterprise is a primary producer; and

(d) the applicant has given a resilience plan to the authority for the applicant’s primary production enterprise; and

(e) the applicant has identified in the resilience plan an eligible project or eligible recovery activity to be completed with the assistance provided under the scheme; and

(f) the applicant can service the loan; and

(g) the applicant’s primary production enterprise is commercially viable or demonstrates sound prospects for commercial viability.

(2) However, the applicant is not eligible to receive assistance under the scheme if—

(a) the applicant or an interested person for the primary production enterprise has given to the department, in support of an application for DRAS funding, an invoice issued in the 6 months before the day the application for assistance is made; and

(b) the applicant or the interested person received DRAS funding for the invoice.

(3) In this section—

"DRAS funding" means—

(a) a freight subsidy under the program known as the Drought Relief Assistance Scheme administered by the department; or

(b) a rebate known as the Emergency Water Infrastructure Rebate under the program known as the Drought Relief Assistance Scheme administered by the department.

"interested person" , for a primary production enterprise, means—

(a) if the primary production enterprise is carried on by a sole trader—the sole trader; or

(b) if the primary production enterprise is carried on by a partnership, proprietary company or trust—a partner in the partnership, a shareholder in the company or a beneficiary of the trust.

10 Interest rates

(1) The interest charged on a loan given under the scheme must be calculated at a concessional interest rate decided by the authority.

(2) The authority may include a condition varying the interest rate during the term of the loan.

11 Security

A loan under the scheme must be secured to the satisfaction of the authority.

12 Terms of repayment

(1) The term of a loan under the scheme is the term decided by the authority up to a maximum of 10 years.

(2) During the first 2 years of the loan term, the applicant must make the interest repayments decided by the authority.

(3) From the start of the third year of the loan term, the applicant must make the principal and interest repayments decided by the authority.

13 Condition

(1) The payment of assistance under the scheme is subject to the condition stated in this section.

(2) If requested by the authority, the applicant must give to the authority a report about how the assistance is enabling the person to achieve outcomes consistent with the purpose of the assistance mentioned in section 2 .

14 Requirements for applications

(1) An application for assistance under the scheme must—

(a) be made on the authority’s application form; and

(b) be accompanied by the documents stated on the application form; and

(c) be given to the authority.

(2) If the authority asks the applicant to provide further information to support the application, the applicant must provide the information.

15 Deciding applications

(1) The authority must consider, and decide to approve or refuse to approve, each application for assistance under the scheme that complies with section 14 (1) .

(2) The authority must consider applications in the order they are received by the authority.

(3) The authority must refuse an application for assistance if the authority’s assistance funds for the scheme are not enough to pay for the assistance.

16 Review by authority

Assistance given to an applicant under the scheme may be subject to an annual review by the authority.