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Farm Household Support Bill 2014

2013-2014

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

 

Presented and read a first time

 

 

 

 

Farm Household Support Bill 2014

 

No.      , 2014

 

(Agriculture)

 

 

 

 

A Bill for an Act to provide financial assistance to farmers and their partners, and for related purposes

   

   

   



Contents

Part 1—Preliminary                                                                                                              1

1............ Short title............................................................................................. 1

2............ Commencement................................................................................... 2

3............ Object of this Act................................................................................ 2

4............ Simplified outline of this Act.............................................................. 3

5............ Definitions.......................................................................................... 3

6............ Meaning of cumulative period of farm household allowance and 3 years or less     6

Part 2—Farm household allowance                                                                             8

Division 1—Simplified outline of this Part                                                         8

7............ Simplified outline of this Part.............................................................. 8

Division 2—Basic qualifications of farmers and their partners for farm household allowance               10

8............ Qualification of farmers for farm household allowance.................... 10

9............ Qualification of farmers’ partners for farm household allowance..... 10

10.......... Grace period for farmers’ partners.................................................... 11

11.......... Persons with temporary incapacity exemption may be taken to meet the labour requirement   12

12.......... Persons not qualified if Secretary determines that they do not effectively control farm enterprises          12

13.......... Determination of matters relating to qualification for farm household allowance     13

Division 3—Financial improvement agreements                                         14

14.......... Requirement to enter financial improvement agreement.................... 14

15.......... Terms of financial improvement agreement....................................... 15

16.......... Approval of requirements................................................................. 15

17.......... Variation, cancellation and review..................................................... 16

18.......... Notification of circumstances preventing or affecting compliance..... 17

Division 4—The activity test                                                                                    18

19.......... The activity test................................................................................. 18

20.......... Training and advice to be provided by appropriately qualified person 18

21.......... Determining whether work is unsuitable........................................... 19

Division 5—Exemptions from the activity test                                              21

Subdivision A—General exemptions determined by the Secretary              21

22.......... Determination of exemption by Secretary......................................... 21

23.......... Essential farm activities..................................................................... 21

24.......... Domestic violence etc........................................................................ 22

25.......... People with disabled children............................................................ 23

26.......... Inclusion in prescribed class............................................................. 23

27.......... Exemption where requirement for person to satisfy the activity test would be unreasonable    24

28.......... Special circumstances........................................................................ 24

Subdivision B—Automatic general exemptions                                                24

29.......... Members of Defence Reserves......................................................... 24

30.......... Prenatal and postnatal exemption...................................................... 24

Subdivision C—People temporarily incapacitated                                          25

31.......... Temporarily incapacitated person exempt from the activity test......... 25

32.......... Time limit for exemption—end of person’s maximum exemption period 26

Division 6—Payability                                                                                                 29

Subdivision A—Situations where allowance not payable (assets test)          29

33.......... Non-farm assets value limit............................................................... 29

34.......... Farm assets value limit...................................................................... 29

35.......... Meaning of farm assets and non-farm assets ................................... 29

36.......... Meaning of value of assets................................................................ 30

Subdivision B—Situations where allowance not payable (general)             31

37.......... Farm household allowance not payable if allowance rate nil............. 31

38.......... Multiple entitlement exclusion........................................................... 31

Subdivision C—Situations where allowance not payable (waiting periods) 33

39.......... Waiting periods................................................................................. 33

40.......... Ordinary waiting period.................................................................... 33

41.......... Duration of ordinary waiting period.................................................. 34

42.......... Newly arrived resident’s waiting period........................................... 34

43.......... Duration of newly arrived resident’s waiting period......................... 36

44.......... Liquid assets test waiting period....................................................... 36

45.......... Duration of liquid assets test waiting period..................................... 37

46.......... Waiver for severe financial hardship................................................. 37

47.......... Effect of being subject to more than one waiting period.................... 38

Subdivision D—Other situations where farm household allowance not payable            38

48.......... Seasonal workers.............................................................................. 38

Division 7—Overseas portability                                                                          39

49.......... Division does not affect need for qualification.................................. 39

50.......... Persons to whom Division applies.................................................... 39

51.......... Farm household allowance portable.................................................. 39

52.......... Amounts added to rate...................................................................... 40

53.......... Meaning of allowable absence and portability period ...................... 40

54.......... Secretary may extend the portability period....................................... 40

Division 8—Rate of farm household allowance                                            43

Subdivision A—Persons who have turned 22                                                     43

55.......... How to work out the rate of a person’s farm household allowance.. 43

56.......... Maximum basic rate.......................................................................... 43

57.......... Pension supplement does not apply.................................................. 43

58.......... Clean energy supplement.................................................................. 43

59.......... Pharmaceutical allowance.................................................................. 44

Subdivision B—Persons who have not turned 22                                              44

60.......... How to work out the rate of a person’s farm household allowance.. 44

61.......... Maximum basic rate.......................................................................... 45

62.......... Clean energy supplement.................................................................. 45

63.......... Pharmaceutical allowance.................................................................. 45

64.......... Youth disability supplement does not apply...................................... 45

65.......... Student income bank does not apply................................................. 45

Subdivision C—Income test                                                                                    46

66.......... Deemed income from financial assets............................................... 46

67.......... Allowable deductions from ordinary income.................................... 46

Subdivision D—Estimates of business income                                                   47

68.......... Determination of rate may be based on estimate................................ 47

69.......... Date of effect of determinations based on estimates of business income  48

70.......... Debts arising from payments of farm household allowance based on estimates of business income       49

Division 9—Compliance with obligations in relation to farm household allowance        50

71.......... Qualification failures......................................................................... 50

72.......... Consequences of qualification failures.............................................. 50

73.......... Conduct failures................................................................................ 51

74.......... Consequences of conduct failures..................................................... 51

75.......... Revoking a determination relating to a conduct failure...................... 51

76.......... Reasonable excuses........................................................................... 52

77.......... Day of determination......................................................................... 53

78.......... Relationship with section 80 of the Social Security Administration Act.. 53

Part 3—Activity supplement                                                                                          54

79.......... Simplified outline of this Part............................................................ 54

80.......... Qualification for the activity supplement........................................... 54

81.......... Electing method of payment.............................................................. 57

82.......... Amount of activity supplement......................................................... 57

83.......... Determination of eligible activities.................................................... 57

Part 4—Farm financial assessments                                                                          58

Division 1—Simplified outline of this Part                                                       58

84.......... Simplified outline of this Part............................................................ 58

Division 2—Farm financial assessments                                                           59

85.......... Requirement to have farm financial assessment conducted............... 59

86.......... Requirement for farm financial assessment to be conducted by independent prescribed adviser              59

Division 3—Farm financial assessment supplement                                   61

87.......... Qualification for farm financial assessment supplement.................... 61

88.......... Electing method of payment.............................................................. 61

89.......... The amount of farm financial assessment supplement....................... 62

Part 5—Application and modification of the Social Security Act and the Social Security Administration Act                                                                                                                               63

Division 1—Introduction                                                                                           63

90.......... Simplified outline of this Part............................................................ 63

91.......... Purposes of this Part......................................................................... 64

92.......... Further modification of the Social Security Act and the Social Security Administration Act   64

Division 2—Application and modification of the Social Security Act 66

93.......... Application of the Social Security Act.............................................. 66

94.......... Certain provisions do not apply........................................................ 69

95.......... Modification of particular provisions................................................ 70

96.......... Application of Division 10 of Part 2.11 and Division 9 of Part 2.12 (bereavement payments) of the Social Security Act.......................................................................................................... 73

97.......... References to youth allowance and newstart allowance.................... 73

Division 3—Application and modification of the Social Security Administration Act   74

98.......... Certain provisions do not apply........................................................ 74

99.......... Modification of particular provisions................................................ 74

Part 6—Miscellaneous                                                                                                        77

100........ Simplified outline of this Part............................................................ 77

101........ Delegation of powers........................................................................ 77

102........ Delegation by Secretary: references to the Secretary and the Department 77

103........ Approval of forms............................................................................ 79

104........ Annual report.................................................................................... 79

105........ Appropriation.................................................................................... 79

106........ Rules................................................................................................. 80

 



A Bill for an Act to provide financial assistance to farmers and their partners, and for related purposes

The Parliament of Australia enacts: