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DROUGHT RELIEF PAYMENT ACT 1994 No. 125 of 1994 - SCHEDULE 1

                             SCHEDULE                  Section 3

PART 1-FARM HOUSEHOLD SUPPORT ACT 1992
Division 1-Amendments 1. Title: Repeal the title, substitute:

"An Act relating to:

   (a)  the provision of income support to primary producers without a
        long-term productive, sustainable and profitable future in the sector;
        and

   (b)  the provision of relief payments to primary producers who are in
        exceptional circumstances due to extreme drought". 2. Subsection 3(1):
        Insert:

" 'family payment'
'RAS authority' ". 3. Section 6: Add at the end:

"; and (c) to provide financial assistance to farmers who:

   (i)  are experiencing difficulty in meeting living expenses; and

   (ii) are in exceptional circumstances due to extreme drought.". 4. Part 2
        (heading): Add at the end "OR DROUGHT RELIEF PAYMENT". 5. Division 1
        of Part 2 (heading): Add at the end "for farm household support". 6.
        After Division 1 of Part 2: Insert:

"Division 1A-Qualification for drought relief payment Qualification for
drought relief payment Qualification

"8A.(1) A person is qualified for drought relief payment in respect of a
period if:

   (a)  the period begins on or after 1 October 1994; and

   (b)  throughout the period:

        (i)    the person:

                (A)  is a farmer; and

                (B)  is at least 18; and

                (C)  is an Australian resident; and

                (D)  is in Australia; and

        (ii)   a drought exceptional circumstances certificate issued in
               respect of the person has effect. Certificate

"(2) For the purposes of this section, a drought exceptional circumstances
certificate issued in respect of the person is a certificate that:

   (a)  is called a drought exceptional circumstances certificate; and

   (b)  was issued to the person by a RAS authority on or after 7 October 1994
        under a memorandum of understanding between the RAS authority and the
        Secretary to the Department of Primary Industries and Energy; and

   (c)  relates to the farm enterprise, or any of the farm enterprises, in
        respect of which the person is a farmer.". 7. Division 2 of Part 2
        (heading): After "support" insert "or drought relief payment". 8.
        Before paragraph 9(a): Insert:

"(aa) drought relief payment is payable to the person (see section 9A); or".
9. Section 9: Add at the end:

"(2) Drought relief payment is not payable to a person for a period during
which the person is qualified for drought relief payment if, during that
period:

   (a)  no determination by the Secretary that the value of the person's
        assets does not exceed the person's assets value limit has effect (see
        section 10); or

   (b)  the person is a full-time student (see section 11); or

   (c)  another support payment is being paid to the person (see section 12);
        or

   (d)  the person is receiving income that is paid by a community or group
        from funds provided under a Commonwealth funded employment program
        (see section 13).". 10. After section 9: Insert: Farm household
        support not payable if drought relief payment is payable

"9A. Farm household support is not, and is taken never to have been, payable
to a person for a period if the person is receiving, or has received, drought
relief payment in respect of that period. Note: See Part 8A for additional
rules about the suspension of farm household support where drought relief
payment is payable.". 11. Subsection 10(1): Omit "Farm household support is
not", substitute "Neither farm household support nor drought relief payment
is". 12. Paragraphs 10(2)(a) and (b): After "farm household support" insert
"or drought relief payment". 13. Subsection 11(1): Omit "farm household
support is not", substitute "neither farm household support nor drought relief
payment is". 14. Subsection 11(2): After "farm household support" insert "or
drought relief payment, as the case requires,". 15. Subsections 12(1), (3),
(4) and (5): Omit "Farm household support is not", substitute "Neither farm
household support nor drought relief payment is". 16. Subsection 12(2): Omit
"farm household support is not", substitute "neither farm household support
nor drought relief payment is". 17. Subsection 12(6): After "farm household
support" insert "or drought relief payment, as the case requires,". 18.
Section 13: Omit "Farm household support is not", substitute "Neither farm
household support nor drought relief payment is". 19. Part 3 (heading): Add at
the end "OR DROUGHT RELIEF PAYMENT". 20. Subsection 14(1): After "farm
household support" insert "or drought relief payment". 21. Subsection 14(1):
After "that support" insert "or for that payment, as the case requires". 22.
Paragraph 14(2)(a): After "farm household support" insert "or drought relief
payment". 23. Paragraph 14(2)(b): After "farm household support" insert "or
drought relief payment, as the case requires". 24. Paragraph 15(b): Omit the
paragraph, substitute:

"(b) be in accordance with a form approved in writing by:

        (i)    in the case of a claim for farm household support-the Secretary
               to the Department of Primary Industries and Energy; or

   (ii) in the case of a claim for drought relief payment-the Secretary.". 25.
        Section 19: After "granted if" insert "the claim is for farm household
        support and". 26. Section 19: Add at the end:

"(2) The Secretary is to determine that the claim is to be granted if the
claim is for drought relief payment and the Secretary is satisfied that:

   (a)  the person is qualified for drought relief payment; and

   (b)  no provision of this Act makes the payment not payable to the
        person.". 27. Paragraphs 20(2)(a), (3)(a) and (4)(a): After "farm
        household support" insert "or drought relief payment". 28. Part 4
        (heading): Add at the end "OR DROUGHT RELIEF PAYMENT". 29. Division 1
        of Part 4 (heading): Omit the heading, substitute:

"Division 1-Rate of farm household support

"Subdivision A-Maximum fortnightly rate". 30. Section 22: Add at the end:

"(2) For the purposes of calculating a rate referred to in subsection (1), the
value of assets that are exempt assets for the purposes of this Act is to be
disregarded.". 31. Division 2 of Part 4 (heading): Omit the heading,
substitute:

"Subdivision B-Applicable rate". 32. After section 24: Insert:

"Division 2-Rate of drought relief payment Rate of drought relief payment-how
worked out

"24A.(1) The rate at which drought relief payment is payable to a person is
the sum of the following amounts:

   (a)  the fortnightly rate at which job search allowance would be payable to
        the person if the person were entitled to receive job search
        allowance;

   (b)  if the person is a member of a couple-the fortnightly rate at which
        partner allowance would be payable to the person's partner if the
        partner were entitled to receive partner allowance;

   (c)  if the person is not in receipt of family payment-the fortnightly rate
        at which family payment would be payable to the person if the person
        were in receipt of family payment.

"(2) For the purposes of calculating a rate referred to in subsection (1), the
value of assets that are exempt assets for the purposes of this Act is to be
disregarded.". 33. Part 5 (heading): Add at the end "OR DROUGHT RELIEF
PAYMENT". 34. Section 25: Add at the end:

"(2) Drought relief payment becomes payable to a person on the day on which
the Secretary's determination that the person's claim for drought relief
payment is to be granted takes effect (see section 20).". 35. After section
26: Insert: Drought relief payment to be by way of grant

"26A. Drought relief payment is paid to a person by way of grant of financial
assistance to the person.". 36. Subsection 28(1): After "Farm household
support" insert "or drought relief payment". 37. Section 29: After
"instalment" insert "of farm household support". 38. After section 29: Insert:
Amount of instalments of drought relief payment

"29A. The instalment of drought relief payment payable for a period to a
person is worked out using the formula:
The person's rate of drought X Week days in period
          relief payment                           10

Note:     For the person's rate, see section 24A.".
39. Subsection 31(1): After "farm household support" insert "or drought relief
payment". 40. Section 33: After "farm household support" insert "or drought
relief payment". 41. Section 37: After "29" insert ", to the extent to which
those Parts and sections deal with qualification for, or payments of, farm
household support,". 42. Subsection 41(1): After "farm household support"
insert "or drought relief payment". 43. Subsection 41(2): After "farm
household support" insert "or drought relief payment, as the case requires,".
44. Subsection 42(1): After "farm household support" insert "or drought relief
payment". 45. Subsection 42(1): Omit "allowance", substitute "support or the
drought relief payment, as the case requires,". 46. Part 8 (heading): Add at
the end "OR DROUGHT RELIEF PAYMENT". 47. Subsections 43(1) and (2): After
"farm household support" (first occurring) insert "or drought relief payment".
48. Subsections 43(1) and (2): After "farm household support" (second
occurring) insert "or drought relief payment, as the case requires,". 49.
Paragraph 44(a): After "farm household support" insert "or drought relief
payment". 50. Subparagraph 44(e)(i): After "farm household support" insert "or
drought relief payment, as the case requires". 51. Subparagraph 44(e)(ii) and
paragraph 44(f): After "farm household support" insert "or drought relief
payment, as the case requires,". 52. Section 44: Omit "farm household support
continues", substitute "farm household support or drought relief payment, as
the case requires, continues". 53. Paragraph 45(a): After "farm household
support" insert "or drought relief payment". 54. Subparagraph 45(e)(i): After
"farm household support" insert "or drought relief payment, as the case
requires". 55. Subparagraph 45(e)(ii): After "farm household support" insert
"or drought relief payment, as the case requires,". 56. Section 45: Omit "farm
household support ceases", substitute "farm household support or drought
relief payment, as the case requires, ceases". 57. Paragraph 46(1)(a): After
"farm household support" insert "or drought relief payment". 58. Paragraph
46(1)(b): After "support" insert "or that drought relief payment, as the case
requires,". 59. Subsection 46(1): After "the support" insert "or the drought
relief payment, as the case requires". 60. Section 47: After "farm household
support" (first occurring) insert "or drought relief payment".

61. Section 47: Omit "farm household support, farm household support",
substitute "farm household support or drought relief payment, as the case
requires, then farm household support or drought relief payment, as the case
requires,". 62. Section 48: Add at the end:

"(2) Drought relief payment ceases to be payable to a person if:

   (a)  the person asks the Secretary in writing to stop paying instalments of
        drought relief payment to him or her; or

   (b)  the person ceases to be qualified for drought relief payment.". 63.
        Section 49: After "farm household support" (first occurring) insert
        "or drought relief payment". 64. Paragraphs 49(a) and (b): After "farm
        household support" insert "or drought relief payment, as the case
        requires,". 65. After section 49: Insert:

"PART 8A-SUSPENSION OF FARM HOUSEHOLD SUPPORT IF DROUGHT
RELIEF PAYMENT IS PAYABLE Farm household support ceases to be payable if
drought relief payment is payable

"49A. Farm household support ceases, and is taken to have ceased, to be
payable to a person at the beginning of a period if the person is receiving,
or has received, drought relief payment in respect of that period. Suspension
of farm household support where drought relief payment is payable-Division 2
of Part 6 not applicable When section applies

"49B.(1) This section applies to a person if:

   (a)  at a particular time (the 'original FHS cessation time'), farm
        household support ceases, or ceased, to be payable to the person
        because drought relief payment becomes, or became, payable to the
        person; and

   (b)  at a later time (the 'DRP cessation time'), drought relief payment
        ceases to be payable to the person; and

   (c)  immediately before the original FHS cessation time, the person was not
        qualified for farm household support under Division 2 of Part 6.
Note:     Division 2 of Part 6 deals with certain former RAS (Part C)
beneficiaries. Deemed claim for farm household support

"(2) The person is taken to have made a proper claim (the 'new FHS claim') for
farm household support under Part 3 immediately after the DRP cessation time.
Continuity of declarations etc.

"(3) If the Secretary determines under section 19 that the new FHS claim is to
be granted, a declaration, direction or notice in force in relation to the
person under section 23, 32 or 41 immediately before the original FHS
cessation time has effect, in relation to farm household support payable as a
result of the new FHS claim, as if the declaration, direction or notice, as
the case requires, had been given immediately after the determination takes
effect. Deferral of repayments

"(4) For the purposes of subsection 50(1), the time at which farm household
support ceased to be payable to the person as mentioned in subsection (1) of
this section is taken to be:

   (a)  if the new FHS claim is granted-when farm household support payable to
        the person as a result of the new FHS claim ceases to be payable; or

   (b)  in any other case-the DRP cessation time; instead of the original FHS
        cessation time. Extension of grant period

"(5) For the purposes of the application of sections 5 and 52 to the person:

   (a)  the start of the person's grant period is to be worked out as if farm
        household support were payable to the person throughout the period
        (the 'interim period'):

        (i)    beginning at the original FHS cessation time; and

        (ii)   ending at the DRP cessation time; and

   (b)  a period of 9 months or 2 years referred to in either of those
        sections is to be increased by one day for each whole day in the
        interim period. Suspension of farm household support where drought
        relief payment is payable-Division 2 of Part 6 applicable When section
        applies

"49C.(1) This section applies to a person if:

   (a)  at a particular time (the 'original FHS cessation time'), farm
        household support ceases, or ceased, to be payable to the person
        because drought relief payment becomes, or became, payable to the
        person; and

   (b)  at a later time (the 'DRP cessation time'), drought relief payment
        ceases to be payable to the person; and

   (c)  immediately before the original FHS cessation time, the person was
        qualified for farm household support under Division 2 of Part 6. Note:
        Division 2 of Part 6 deals with certain former RAS (Part C)
        beneficiaries. Resumption of entitlement to farm household support

"(2) If the person is still qualified for farm household support under
Division 2 of Part 6 immediately before the DRP cessation time, the person's
entitlement to farm household support under Division 2 of Part 6 resumes
immediately after the DRP cessation time. Continuity of directions etc.

"(3) If the person's entitlement to farm household support resumes as
mentioned in subsection (2), a direction or notice in force in relation to the
person under section 32 or 41 immediately before the original FHS cessation
time has effect, in relation to farm household support payable as a result of
the resumption, as if the direction or notice, as the case requires, had been
given immediately after the resumption. Deferral of repayments

"(4) For the purposes of subsection 50(2), the time at which farm household
support ceased to be payable to the person as mentioned in subsection (1) of
this section is taken to be the time when farm household support payable to
the person as a result of the resumption ceases to be payable, instead of the
original FHS cessation time. Extension of grant period

"(5) For the purposes of the application of sections 5 and 52 to the person, a
period of 9 months or 2 years referred to in either of those sections is to be
increased by one day for each whole day in the period:

   (a)  beginning at the original FHS cessation time; and

   (b)  ending at the DRP cessation time. Continuity of the person's status as
        a former RAS (Part C) beneficiary

"(6) For the purposes of paragraph (b) of the definition of 'former RAS (Part
C) beneficiary' in subsection 3(2), and for the purposes of subsection 34(3),
the person is taken to have been in receipt of farm household support
throughout the period:

   (a)  beginning at the original FHS cessation time; and

   (b)  ending at the DRP cessation time.". 66. Part 9 (heading): Add at the
        end "OF FARM HOUSEHOLD SUPPORT". 67. Paragraphs 54(1)(a), (b) and (c):
        After "farm household support" insert "or drought relief payment". 68.
        Paragraph 54(1)(a): After "the support" insert "or the payment, as the
        case requires". 69. Subsection 54(1): Add at the end:

"; or (e) the rate at which drought relief payment is, or was, payable.". 70.
Paragraph 54(11)(b): Omit "for a pension, benefit or allowance". 71. Paragraph
54(11)(c): Omit "of a pension, benefit or allowance". 72. Section 55: Omit
"Farm household support is", substitute "Both farm household support and
drought relief payment are". 73. Section 56: After "farm household support"
(first occurring) insert "or drought relief payment". 74. Paragraphs 56(a) and
(b): After "farm household support" insert "or drought relief payment, as the
case requires,". 75. Paragraph 56(c): Before "the amount" insert "in the case
of an amount purporting to be an amount of farm household support-". 76.
Paragraph 56(c): Add at the end "or". 77. After paragraph 56(c): Insert:

"(d) in the case of an amount purporting to be an amount of drought relief
payment-the amount was part of a payment made because the drought relief
payment payable to the person in respect of that period was calculated at a
rate higher than the rate at which it should have been calculated;". 78.
Section 57: Add at the end:

"(3) Drought relief payment is to be paid out of the Consolidated Revenue
Fund, which is appropriated accordingly.".

Division 2-Transitional provisions 79. Transitional-drought relief payment
claim forms

(1) This item applies if, after 21 September 1994 and before the commencement
of this item, an officer of the Department purported to approve a claim form
for drought relief payment.

(2) The form has effect, for the purposes of the Farm Household  Support Act
1992 , as if it had been approved by the Secretary under section 15 of that
Act immediately after the commencement of this item. 80. Transitional-lodgment
of claims

(1) This item applies if, after 21 September 1994 and before the commencement
of this item:

   (a)  a person purported to lodge a claim for drought relief payment; and

   (b)  assuming that the claim had been lodged immediately after the
        commencement of this item, it would have complied with sections 15 and
        16 of the Farm Household Support Act 1992.

(2) The claim has effect, for the purposes of the Farm Household  Support Act
1992 , as if:

   (a)  it had been made under Part 3 of that Act immediately after the
        commencement of this item; and

   (b)  it had complied with sections 15 and 16 of that Act. 81.
        Transitional-set-off of overpayments of farm household support

(1) If:

   (a)  an amount purporting to be an amount of farm household support payable
        under the Farm Household Support Act 1992 was paid to a person after
        21 September 1994 and before the commencement of this item; and

   (b)  because of section 9A or 49A of that Act, the amount so paid was not
        payable to the person; and

   (c)  the amount so paid is recoverable as a debt due to the Commonwealth
        under section 56 of the Farm Household Support Act 1992; the amount so
        paid may be deducted from one or more instalments of drought relief
        payment payable to the person under that Act.

(2) If a deduction is made from an instalment of drought relief payment, the
instalment is taken to have been paid in full to the person. 82.
Transitional-set-off of pre-commencement "drought relief payment"

(1) This item applies if, after 21 September 1994 and before the commencement
of this item, a person was paid an amount described as "drought relief
payment" out of money appropriated under an Appropriation Act.

(2) The amount is to be deducted from one or more instalments of drought
relief payment payable to the person under the Farm Household  Support Act
1992 .

(3) If a deduction is made from an instalment of drought relief payment, the
instalment is taken to have been paid in full to the person. 83.
Transitional-farm household support claim forms An approval in force under
paragraph 15(b) of the Farm Household  Support Act 1992 immediately before the
commencement of this item has effect, after that commencement, as if it had
been given under subparagraph 15(b)(i) of that Act.

PART 2-HEALTH INSURANCE ACT 1973 84. Subsection 3(1) (paragraph (aa) of the
definition of "dependant"): After "4D" insert "or 5DA". 85. Subsection 3(13):
After "5D" insert ", 5DA". 86. After section 5D: Insert: Disadvantaged
persons, being persons in receipt of drought relief payment Original
declaration

"5DA.(1) If:

   (a)  drought relief payment is payable to a person in respect of a period
        (the 'DRP period') beginning on or after 1 October 1994; and

   (b)  there is no declaration in force under this section in respect of the
        person; the Secretary must declare the person to be a disadvantaged
        person within the meaning of this section in respect of a period
        specified in the declaration. The specified period is to be a period
        of 12 weeks beginning at the start of the DRP period. Subsequent
        declarations

"(2) If:

   (a)  a declaration (the 'original declaration') under this section is in
        force in respect of a person; and

   (b)  drought relief payment is payable to the person immediately before the
        end of the period specified in the original declaration; the Secretary
        must declare the person to be a disadvantaged person within the
        meaning of this section in respect of a period specified in the
        declaration. The specified period is to be a period of 12 weeks
        beginning at the end of the period specified in the original
        declaration. Declarations to be in writing etc.

"(3) A declaration under subsection (1) or (2) is to be in writing and notice
of it is to be given to the person concerned. Definitions

"(4) In this section:
'drought relief payment' means drought relief payment under the Farm 
Household Support Act 1992 ;
'Secretary' means the Secretary to the Department of Social Security.". 87.
Subsection 5G(1): After "5D," insert "5DA,". 88. Section 5H: After "5D" insert
", 5DA".

PART 3-INCOME TAX ASSESSMENT ACT 1936 89. Section 24AAA: Add at the end of the
table the following entry: Drought relief payment under the
Farm Household Support Act 1992
Subdivision IA                   24AIA - 24AIB
90. After section 24AI: Insert:

"Subdivision IA-Exemption from income tax-drought relief payment under the
Farm Household Support Act 1992 Interpretation-supplementary amounts

"24AIA.(1) For the purpose of applying this Subdivision to an instalment of
drought relief payment under the Farm Household Support  Act 1992 derived by a
taxpayer, the supplementary amounts are as follows:

   (a)  so much of the instalment as was included in the instalment because
        the taxpayer or the partner of the taxpayer paid rent;

   (b)  so much of the instalment as is equal to the amount (if any) that
        would have been included in the instalment by way of remote area
        allowance if it were assumed that the instalment had been an
        instalment of job search allowance under the Social Security Act 1991
        instead of an instalment of drought relief payment;

   (c)  so much of the instalment as was included in the instalment because of
        paragraph 24A(1)(c) of the Farm Household Support Act 1992.

"(2) A reference in subsection (1) to a partner includes a reference to a
deceased partner.

"(3) In this section:
'partner' has the same meaning as in the Farm Household Support Act  1992 .
Drought relief payment

"24AIB.(1) The treatment of instalments of drought relief payment under the
Farm Household Support Act 1992 is as follows:

   (a)  the supplementary amount is exempt;

   (b)  the balance is not exempt.

"(2) Payments under paragraph 49(b) of the Farm Household Support  Act 1992
are exempt to the extent to which they are attributable to an instalment of
drought relief payment under that Act.". 91. Subsection 79A(4) (definition of
"prescribed allowance"): Omit the definition, substitute:

" 'prescribed allowance' means:

   (a)  so much of a payment under the Social Security Act 1991 or the
        Veterans' Entitlements Act 1986 as was included in the payment by way
        of remote area allowance; or

   (b)  so much of an instalment of drought relief payment under the
        Farm Household Support Act 1992 as is equal to the amount (if any)
        that would have been included in the instalment by way of remote area
        allowance if it were assumed that the instalment had been an
        instalment of job search allowance under the Social Security Act 1991
        instead of an instalment of drought relief payment;". 92. Subsection
        160AAA(1) (after paragraph (d) of the definition of "rebatable
        benefit"): Insert:

"(da) paid by way of drought relief payment under the Farm Household  Support
Act 1992 ; or". 93. Application The amendments made by this Part apply to
amounts paid after the commencement of this item.

PART 4-SOCIAL SECURITY ACT 1991 94. After paragraph 1250(1)(d): Insert:

"(da) under subsection 7A(2) or paragraph 15(b) of the Farm  Household Support
Act 1992 (memorandum of understanding and form of claim); or".

NOTE ABOUT SECTION HEADINGS 1. Upon the commencement of this Act, the headings
to sections of the Farm Household Support Act 1992 are altered as follows:

   (a)  the heading to section 9 is altered by inserting "or drought relief
        payment" after "farm household support";

   (b)  the heading to section 10 is altered by omitting "allowance" and
        substituting "farm household support or drought relief payment";

   (c)  the heading to section 25 is altered by adding at the end "or drought
        relief payment";

   (d)  the heading to section 29 is altered by adding at the end "of farm
        household support";

   (e)  the heading to section 42 is altered by adding at the end "or drought
        relief payment";

   (f)  the heading to section 47 is altered by adding at the end "or drought
        relief payment";

   (g)  the heading to section 55 is altered by inserting "and drought relief
        payment" after "Farm household support". 


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