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This is a Bill, not an Act. For current law, see the Acts databases.
1998-1999-2000-2001
The
Parliament of the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Dairy Produce
Legislation Amendment (Supplementary Assistance) Bill
2001
No. ,
2001
(Agriculture, Fisheries and
Forestry)
A Bill for an Act to amend the
Dairy Produce Act 1986, and for related purposes
ISBN: 0642 457670
Contents
Dairy Produce Act
1986 3
Farm Household Support Act
1992 21
A Bill for an Act to amend the Dairy Produce Act
1986, and for related purposes
The Parliament of Australia enacts:
This Act may be cited as the Dairy Produce Legislation Amendment
(Supplementary Assistance) Act 2001.
This Act commences on the day on which it receives the Royal
Assent.
Each Act that is specified in a Schedule to this Act is amended or
repealed as set out in the applicable items in the Schedule concerned, and any
other item in a Schedule to this Act has effect according to its
terms.
1 After paragraph
119(2B)(a)
Insert:
(aa) the SDA scheme (within the meaning of Schedule 2); or
2 Clause 1 of
Schedule 2
Omit:
• The main object of the Dairy Industry Adjustment Program is
to help the dairy industry adjust to deregulation by providing for 2 types of
grants, as follows:
(a) DSAP payments (made under this Schedule);
(b) dairy exit payments (made under Part 9C of the Farm Household
Support Act 1992).
substitute:
• The main object of the Dairy Industry Adjustment Program is to help
the dairy industry or dairy communities adjust to deregulation by providing for
4 types of grants, as follows:
(a) DSAP payments (made under this Schedule);
(b) SDA payments (made under this Schedule);
(c) dairy exit payments (made under Part 9C of the Farm Household
Support Act 1992);
(d) payments under the Dairy Regional Assistance Programme (see
clause 86).
3 Clause 1 of
Schedule 2
After:
• Generally, DSAP payments are calculated by reference to 1998-1999
milk deliveries at a rate of 46.23 cents per litre for market milk and a
national average rate of 8.96 cents per litre for manufacturing milk.
insert:
• There are 2 types of SDA payment rights: additional market milk
payment rights and discretionary payment rights.
4 Clause 1 of
Schedule 2
Omit:
• The Dairy Adjustment Authority will administer DSAP payment
rights.
substitute:
• The Dairy Adjustment Authority will administer DSAP and SDA payment
rights.
5 Clause 1 of
Schedule 2
Omit:
• The levy will be paid into a Dairy Structural Adjustment Fund, and
DSAP payments and dairy exit payments will be paid out of that Fund.
substitute:
• The levy will be paid into a Dairy Structural Adjustment Fund, and
DSAP payments, SDA payments, dairy exit payments and payments under the Dairy
Regional Assistance Programme will be paid out of that Fund.
6 Clause 2 of Schedule 2 (definition
of payment right)
After “DSAP scheme”, insert “or the SDA
scheme”.
7 Clause 2 of
Schedule 2
Insert:
SDA payment means a payment under the SDA scheme.
8 Clause 2 of
Schedule 2
Insert:
SDA scheme means the scheme referred to in
clause 37B.
9 Part 2 of Schedule 2
(heading)
Repeal the heading, substitute:
10 After Division 1 of Part 2 of
Schedule 2
Insert:
The following is a simplified outline of this Division:
• This Division provides a framework for the making of SDA
payments.
• The Minister is required to formulate a scheme (the SDA
scheme) for the grant of the following types of payment rights to
entities:
(a) additional market milk payment rights;
(b) discretionary payment rights.
• Additional market milk payment rights will be based on market milk
deliveries in 1998-1999, and will range from 0.12 cents per litre to 12 cents
per litre depending on the percentage of market milk deliveries in that
year.
• Discretionary payment rights may be granted to entities in the
circumstances set out in clause 37G.
• Payment rights will be divided into units, where each unit has a
face value of $32.
• Payments will be made to registered owners of units in accordance
with the SDA scheme.
The Minister must, by writing, formulate a scheme (the SDA
scheme) for:
(a) the grant of payment rights to entities who satisfy the conditions set
out in the scheme; and
(b) the division of payment rights into units; and
(c) the registration of units; and
(d) the making of payments by the Corporation to registered owners of
units.
The SDA scheme must be directed towards ensuring the achievement of the
policy objectives set out in clauses 37D to 37P.
It is a policy objective that there are to be 2 types of payment rights,
as follows:
(a) a type called additional market milk payment
rights;
(b) a type called discretionary payment rights.
Basic eligibility criteria
(1) It is a policy objective that an entity is not eligible to be granted
an additional market milk payment right unless:
(a) the entity has been granted a payment right under the DSAP scheme in
respect of a dairy farm enterprise (the qualifying enterprise);
and
(b) the entity held an interest (of a kind referred to in the SDA scheme)
in that enterprise, or in any other dairy farm enterprise, at a time referred to
in the SDA scheme; and
(c) the number (the market milk number) worked out in
accordance with the following formula is at least 35.1 (rounding to 1 decimal
place and rounding up if the second decimal place is 5 or more):
Note: See also subclause (5) for how those delivery
numbers are worked out.
Calculation of face value
(2) It is a policy objective that the face value of an entity’s
additional market milk payment right is to be a share (worked out in accordance
with the SDA scheme) of the overall market milk amount for the qualifying
enterprise.
Interpretation
(3) For the purposes of this clause, the overall market milk amount
for the qualifying enterprise is the amount worked out in accordance
with the following formula:
where:
relevant cents means:
(a) if the market milk number is at least 45—12 cents; or
(b) if the market milk number is at least 35.1 and less than 45—the
number of cents worked out in accordance with the following
formula:
(4) However, if the amount calculated under subclause (3) is more
than $60,000, then the overall market milk amount for the
qualifying enterprise is taken to be $60,000.
(5) A
reference in this clause to the total number of litres of market milk, or the
total number of litres of manufacturing milk, delivered by the qualifying
enterprise in the 1998-1999 financial year is a reference to that number as
determined by the DAA to have taken to have been delivered by that enterprise in
that year.
(6) This clause is subject to clause 37V (about the effect of death
on eligibility etc. for the grant of payment rights).
(1) It is a policy objective that the face value of an entity’s
additional market milk payment right is to be reduced if:
(a) the entity has been granted a payment right (the DSAP payment
right) under the DSAP scheme; and
(b) the conditions in paragraphs 51(1)(a), (b) and (c) of this Schedule
are satisfied (about the DAA having made an error); and
(c) the DAA has been unable to cancel a number of units (the
protected units) in the DSAP payment right because of the
operation of subclause 51(2).
(2) It is a policy objective that the amount of the reduction is to be
equal to the total face value of the protected units.
(3) If the amount of the reduction would exceed the face value of the
entity’s additional market milk payment right, then it is a policy
objective that the face value of that payment right is to be reduced to
zero.
(1) It is a policy objective that an entity is not eligible to be granted
a discretionary payment right unless the entity satisfies clause 37H or
37J.
(2) This clause is subject to clause 37V (about the effect of death
on eligibility etc. for the grant of payment rights).
(1) An entity satisfies this clause if:
(a) the entity held an interest (of a kind referred to in the SDA scheme)
in a dairy farm enterprise at any time during the period (the qualifying
period) beginning on 1 July 1998 and ending at 6.30 pm on
28 September 1999; and
(b) the entity is taken, under the SDA scheme, to have been affected by a
significant event, a significant crisis or significant anomalous
circumstances.
(2) For the purposes of this clause, dairy farm enterprise
includes a business in Australia that is carried on with a view to
delivering market milk and/or manufacturing milk during the qualifying period,
but that did not deliver such milk during that period.
(1) An entity satisfies this clause if:
(a) the entity was granted a payment right under the DSAP scheme in
respect of a lessor interest the entity held in a dairy farm enterprise;
and
(b) the entity is not taken, under the SDA scheme, to have been affected
by a significant event, a significant crisis or significant anomalous
circumstances; and
(c) the entity passes the lease income test.
Cap
(2) It is a policy objective that the total face value of discretionary
payment rights, granted in respect of a dairy farm enterprise to entities who
satisfy this clause in relation to that enterprise, must not exceed an amount
specified in the SDA scheme.
Interpretation
(3) For the purposes of this clause, an entity held a lessor
interest in a dairy farm enterprise if:
(a) under the DSAP scheme, the enterprise was taken to be subject to an
eligible dairy leasing arrangement; and
(b) under the DSAP scheme, the entity was taken to be a party to that
arrangement as the lessor of land.
(4) For the purposes of this clause, an entity passes the lease
income test if:
(a) both:
(i) more than 50% of the total gross income derived by the entity in the
1999-2000 financial year consisted of eligible lease income; and
(ii) the eligible lease income derived by the entity in the 2000-2001
financial year is at least 20% less than the eligible lease income derived by
the entity in the 1999-2000 financial year; or
(b) both:
(i) more than 50% of the total gross income derived by the entity in the
1999-2000, 1998-1999 and 1997-1998 financial years consisted of eligible lease
income; and
(ii) the eligible lease income derived by the entity in the 2000-2001
financial year is at least 20% less than the average of the eligible lease
income derived by the entity in the 1999-2000, 1998-1999 and 1997-1998 financial
years.
(5) For the purposes of this clause, the gross income derived by an entity
is to be worked out in accordance with:
(a) generally accepted accounting principles; or
(b) if, under the SDA scheme, the generally accepted accounting principles
are taken to be modified for the purposes of the scheme—those principles
as so modified.
(6) For the purposes of this clause, eligible lease income
has the same meaning as in the SDA scheme.
(1) It is a policy objective that each payment right under the SDA scheme
is to be divided into units, where each unit has a face value of $32.
(2) It is a policy objective that the number of units into which a payment
right is divided is to be worked out as follows:
(a) divide the number of dollars in the face value of the payment right by
32;
(b) if the result of the division is a whole number—that number is
the number of units in the payment right;
(c) if the result of the division is less than 1—there is 1 unit in
the payment right;
(d) if the result of the division is greater than 1, but is not a whole
number:
(i) round the result of the division up or down to the nearest whole
number (rounding up in the case exactly half-way between 2 whole numbers);
and
(ii) the rounded number is the number of units in the payment
right.
It is a policy objective that a payment right under the SDA scheme is to
be granted subject to the powers of cancellation conferred on the DAA under the
authority of clauses 50, 51, 52 and 53.
Note 1: Clause 50 deals with cancellation of units
because of the making of a false statement.
Note 2: Clause 51 deals with cancellation of units
because of an error made by the DAA.
Note 3: Clause 52 deals with cancellation of units
because of a breach of an undertaking to dispose of the units.
Note 4: Clause 53 deals with cancellation of units when
a dairy exit payment becomes payable.
It is a policy objective that SDA payments are not to be made in respect
of a quarter that is later than the quarter ending on 30 June
2008.
Register
(1) It is a policy objective that the DAA is to include particulars of
units in payment rights under the SDA scheme on the register referred to in
clause 21.
Registration of ownership
(2) It is a policy objective that an entity’s ownership of a unit is
not to be counted for the purposes of the SDA scheme unless that ownership is
entered on the register.
(3) It is a policy objective that the transfer of the ownership of a unit
is not to be registered unless:
(a) the transferee is an eligible entity; or
(b) the transferee gives the DAA a written undertaking to assign the unit
to an eligible entity within 60 days after the transfer is registered.
Note: For enforcement of the undertaking, see
clause 52.
Registration of charges
(4) It is a policy objective that the SDA scheme may provide for the
registration of charges over units.
Inspection of register
(5) It is a policy objective that an entry on the register relating to a
unit is to be open for inspection in the following circumstances:
(a) the owner of the unit consents to the entry being open for
inspection;
(b) such circumstances as are set out in the SDA scheme.
No declaration of trust in respect of unit
(6) It is a policy objective that:
(a) the owner of a unit must not dispose of a unit by way of declaration
of trust; and
(b) if a purported disposal contravenes the rule in paragraph (a), it
is of no effect.
Beneficial interest in unit must not be transferred independently of
legal interest
(7) It is a policy objective that:
(a) a beneficial interest in a unit must not be transferred independently
of the legal interest in the unit; and
(b) if a purported transfer contravenes the rule in paragraph (a), it
is of no effect.
Definition
(8) In this clause:
eligible entity means an entity included in a class of
entities declared by the SDA scheme to be entities who are eligible to become
transferees of units.
(1) It is a policy objective that, in accordance with the SDA scheme, lump
sum payments or quarterly payments will be paid to registered owners of units in
payment rights under the scheme.
(2) It is a policy objective that, if an SDA payment is due to be paid to
an entity, the payment may be recovered, as a debt due to the entity, by action
in a court of competent jurisdiction.
(3) It is a policy objective that, if an individual is entitled to receive
an SDA payment and the payment has not been made at the date of the death of the
individual, the amount of that payment is payable to the legal personal
representative of the individual.
(1) The SDA scheme may make provision with respect to a matter by
conferring on the DAA, or the Minister, a power to make a decision of an
administrative character.
(2) If the SDA scheme confers on the Minister a power to make a decision
of an administrative character, the scheme may also make provision for and in
relation to the Minister delegating that power to the DAA.
(1) The SDA scheme must contain provisions for and in relation to the
review of decisions of the DAA, or the Minister, under the scheme that affect an
entity.
(2) Those provisions must provide for review by the Administrative Appeals
Tribunal or the Administrative Review Tribunal (as the case may be).
(3) Subclause (2) does not limit subclause (1).
(1) The SDA scheme may provide for fees.
(2) The amount of a fee under the SDA scheme must not be such as to amount
to taxation.
The SDA scheme may provide for statements in claims to be verified by
statutory declaration.
(1) The SDA scheme may make provision for the methods by which SDA
payments may be made.
(2) The SDA scheme may require that SDA payments be made using an
electronic funds transfer system.
(3) Subclause (2) does not limit subclause (1).
The SDA scheme may make provision for and in relation to the adjustment
of:
(a) eligibility for the grant of payment rights under the scheme;
and
(b) the calculation of the face value of payment rights under the
scheme;
in relation to the death of an individual who would have otherwise been
eligible to be granted a payment right under the SDA scheme.
Note: For example, the SDA scheme may contain provisions
setting out the eligibility of the trustee of the deceased estate, or of one or
more beneficiaries in the estate, to be granted a payment right under the scheme
and setting out the calculation of the face value of that
right.
The SDA scheme may contain such ancillary or incidental provisions as the
Minister considers appropriate.
Clauses 37C to 37W do not, by implication, limit
clause 37B.
(1) The SDA scheme may be varied, but not revoked, in accordance with
subsection 33(3) of the Acts Interpretation Act 1901.
(2) Subclause (1) does not limit the application of subsection 33(3)
of the Acts Interpretation Act 1901 to other instruments under this
Act.
An instrument under clause 37B is a disallowable instrument for the
purposes of section 46A of the Acts Interpretation Act
1901.
The use of the present tense in a provision of this Division does not
imply that the provision does not apply to things happening before the
commencement of this Division.
(1) A record keeper who has possession or control of a record that
contains personal information that was obtained for the purposes of the
administration of the DSAP scheme may use the information, or disclose the
information to a person, body or agency, for the purposes of the administration
of the SDA scheme.
(2) Unless the contrary intention appears, an expression used in this
clause has the same meaning as in the Privacy Act 1988.
11 Paragraph 38(1)(a) of
Schedule 2
After “DSAP scheme”, insert “or the SDA
scheme”.
12 Paragraph 38(1)(b) of
Schedule 2
After “DSAP scheme”, insert “or the SDA
scheme”.
13 Paragraph 43(3)(a) of
Schedule 2
Omit “or the DSAP scheme”, substitute “, the DSAP scheme
or the SDA scheme”.
14 Subclause 43(5) of
Schedule 2
Omit “or the DSAP scheme”, substitute “, the DSAP scheme
or the SDA scheme”.
15 Subclause 43(6) of Schedule 2
(definition of protected document)
Omit “or the DSAP scheme”, substitute “, the DSAP scheme
or the SDA scheme”.
16 Subclause 43(6) of Schedule 2
(paragraph (c) of the definition of protected
information)
Omit “or the DSAP scheme”, substitute “, the DSAP scheme
or the SDA scheme”.
17 Clause 44 of
Schedule 2
After “DSAP payment”, insert “or an SDA
payment”.
18 Clause 47 of
Schedule 2
After “DSAP payments”, insert “or SDA
payments”.
19 Clause 47 of
Schedule 2
After “DSAP payment”, insert “or SDA payment (as the case
may be)”.
20 Subclause 49(5) of
Schedule 2
After “DSAP payment”, insert “or SDA
payment”.
21 Subclause 49(6) of
Schedule 2
After “DSAP payment”, insert “or SDA
payment”.
22 Subclause 49(7) of
Schedule 2
After “DSAP scheme”, insert “or the SDA scheme (as the
case may be)”.
23 Paragraph 50(1)(a) of
Schedule 2
Omit “or the DSAP scheme”, substitute “, the DSAP scheme
or the SDA scheme”.
24 Subclause 50(1) of
Schedule 2
Omit “DSAP scheme must authorise the DAA”, substitute
“DSAP scheme or the SDA scheme (as the case may be) must authorise the
DAA”.
25 Subclause 50(2) of
Schedule 2
After “DSAP scheme”, insert “or the SDA scheme (as the
case may be)”.
26 Subclause 51(1) of
Schedule 2
After “DSAP scheme”, insert “or the SDA scheme (as the
case may be)”.
27 Subclause 51(2) of
Schedule 2
After “DSAP scheme”, insert “or the SDA scheme (as the
case may be)”.
28 Subclause 51(2) of
Schedule 2
After “DSAP payment”, insert “or an SDA
payment”.
29 Subclause 51(3) of
Schedule 2
After “DSAP scheme”, insert “or the SDA scheme (as the
case may be)”.
30 Paragraph 52(1)(a) of
Schedule 2
After “unit”, insert “in a payment right under the DSAP
scheme”.
Note: The following heading to subclause 52(1) of
Schedule 2 is inserted “DSAP scheme”.
31 After subclause 52(1) of
Schedule 2
Insert:
(1A) For the purposes of subclause (1), eligible entity
has the same meaning as in clause 21.
SDA scheme
(1B) If:
(a) an entity (the first entity) has given the DAA an
undertaking to assign a unit in a payment right under the SDA scheme to an
eligible entity as mentioned in paragraph 37N(3)(b); and
(b) the first entity breaches the undertaking; and
(c) the DAA gives the first entity a written notice directing the first
entity to comply with the undertaking before the end of the period of 60 days
beginning when the direction is given; and
(d) the first entity contravenes the direction;
the SDA scheme must authorise the DAA to cancel the unit.
(1C) For the purposes of subclause (1B), eligible entity
has the same meaning as in clause 37N.
When cancellation takes effect
32 Subclause 52(3) of
Schedule 2
Repeal the subclause.
33 Subclause 53(1) of
Schedule 2
After “DSAP scheme”, insert “or the SDA scheme (as the
case may be)”.
34 Subparagraph 56(a)(i) of
Schedule 2
After “DSAP scheme”, insert “or the SDA
scheme”.
35 Clause 75 of
Schedule 2
After “DSAP payment”, insert “or an SDA
payment”.
Note: The heading to clause 75 of Schedule 2 is
altered by inserting “and SDA” after
“DSAP”.
36 Subclause 76(1) of
Schedule 2
Omit “and dairy exit payments”, substitute “, SDA
payments and dairy exit payments”.
37 Paragraph 78(b) of
Schedule 2
After “DSAP scheme”, insert “or the SDA
scheme”.
38 Paragraph 78(c) of
Schedule 2
After “DSAP scheme”, insert “or the SDA
scheme”.
39 After paragraph 79(a) of
Schedule 2
Insert:
(aa) in making SDA payments; and
40 Paragraph 79(c) of
Schedule 2
Omit “known as the Dairy Industry Adjustment Package (including
expenses in relation to the Dairy Adjustment Panel)”, substitute
“that from time to time form part of the Dairy Industry Adjustment
Package”.
41 Subparagraph 79(i)(i) of
Schedule 2
Omit “or the DSAP scheme”, substitute “, the DSAP scheme
or the SDA scheme”.
42 Paragraph 80(a) of
Schedule 2
Omit “and dairy exit payments”, substitute “, SDA
payments and dairy exit payments”.
43 Subclause 84(1) of
Schedule 2
After “DSAP scheme”, insert “or the SDA
scheme”.
Note 1: The heading to clause 84 of Schedule 2 is
altered by inserting “and SDA” after
“DSAP”.
Note 2: The heading to clause 85 of Schedule 2 is
altered by inserting “and SDA scheme” after “DSAP
scheme”.
44 Subclause 86(3) of
Schedule 2
Repeal the subclause.
45 Subclause 86(4) of
Schedule 2
Omit “$45 million”, substitute “$65
million”.
46 Subclause 86(5) of
Schedule 2
Repeal the subclause.
47 After paragraph 94(2)(a) of
Schedule 2
Insert:
(aa) making SDA payments;
48 Subparagraph 135(1)(c)(i) of
Schedule 2
Omit “or this Schedule”, substitute “, the SDA scheme or
this Schedule”.
49 Subparagraph 135(1)(c)(ii) of
Schedule 2
Omit “or this Schedule”, substitute “, the SDA scheme or
this Schedule”.
50 Paragraph 136(1)(c) of
Schedule 2
Omit “or this Schedule”, substitute “, the SDA scheme or
this Schedule”.
Farm Household Support Act
1992
51 After subparagraph
52C(5)(a)(i)
Insert:
(ia) the SDA scheme (within the meaning of Schedule 2 to the Dairy
Produce Act 1986); or