Commonwealth Numbered Acts

STATES GRANTS (RURAL ADJUSTMENT) ACT 1976 No. 201, 1976 - THE SCHEDULE

THE SCHEDULE
Section 3

  AN AGREEMENT made the     day of One thousand nine hundred and seventy-
between-

THE COMMONWEALTH OF AUSTRALIA (in this agreement called ''the Commonwealth'')
of the first part,

THE STATE OF NEW SOUTH WALES of the second part,

THE STATE OF VICTORIA of the third part,

THE STATE OF QUEENSLAND of the fourth part,

THE STATE OF SOUTH AUSTRALIA of the fifth part,

THE STATE OF WESTERN AUSTRALIA of the sixth part, and

THE STATE OF TASMANIA of the seventh part.

WHEREAS-

                (A)  the Commonwealth and the States recognize that there is
                     need to provide assistance to persons engaged in rural
                     industries throughout Australia in the interest of those
                     industries and of Australia generally;

                (B)  Ministers of the Commonwealth and of the States have
                     agreed upon the Outline of Scheme for Rural Adjustment
                     set out in the Schedule to this agreement as constituting
                     a Scheme under which assistance of various kinds could be
                     provided;

                (C)  the carrying out of the said Scheme is dependent upon
                     financial assistance being granted by the Parliament of
                     the Commonwealth to the States for that purpose;

                (D)  the Parliament of the Commonwealth has authorized the
                     execution of this agreement by and on behalf of the
                     Commonwealth and the provision of financial assistance to
                     the States as provided in this agreement;

NOW IT IS HEREBY AGREED as follows:

I-INTRODUCTION Operation of Agreement

1. (1) This agreement shall, as between the Commonwealth and a State, come
into force when it has been entered into by the Commonwealth and that State.

(2) Notwithstanding that all the States of New South Wales, Victoria,
Queensland, South Australia, Western Australia and Tasmania are named as
parties to this agreement, this agreement shall operate as an agreement
between the Commonwealth and each State in respect of which it has come into
force as fully and effectually as if the State or States in respect of which
it has come into force were the only State or States named as a party or as
parties to the agreement.

(3) In this agreement, each State in respect of which the agreement has come
into force is referred to as a ''State'', and the expression ''the States''
means, except where the context otherwise requires, all of the States in
respect of which for the time being the agreement is in force. Performance of
Agreement

2. The Commonwealth will provide for or secure the performance by it and its
authorities of the obligations of the Commonwealth under this agreement and
each of the States will provide for or secure the performance by the State and
its authorities and instrumentalities of the obligations of the State under
this agreement. Interpretation

3. (1) In this agreement, unless the contrary intention appears-

''financial year'' means a period of twelve months ending on the 30th day of
June;
''the Authority'' means the authority or authorities of a State that has or
have the administration of the Scheme on behalf of the State and, in a case
where there is more than one authority, refers, where the context requires
reference to one authority, to the relevant authority of the State;
''the Scheme'' means the scheme to be established and operated by a State in
accordance with clause 4;
''the Treasurer'' means the Treasurer of the Commonwealth.

(2) Reference in this agreement to a Minister of the Commonwealth or of a
State shall include a reference to a Minister for the time being acting for or
on behalf of the Minister referred to.

(3) In this agreement, except where the context otherwise requires-

   (a)  a reference to a clause refers to the relevant clause of this
        agreement;

   (b)  a reference to a sub-clause refers to the relevant sub-clause of the
        clause in which the reference appears; and

   (c)  the Schedule to this agreement shall be deemed to be an integral part
        of this agreement.

II-ADMINISTRATION OF SCHEME State to operate Scheme

4. (1) Each State will, by using the financial assistance provided by the
Commonwealth in accordance with this agreement, establish and operate a scheme
of financial assistance to persons engaged in rural industries in that State.

(2) The Scheme shall consist of the forms of assistance described in, and
shall be operated in conformity and in accordance with the general principles
and the provisions set out in, the Outline of a Scheme for Rural Adjustment
contained in the Schedule to this agreement, as amended at any time in
pursuance of sub-clause 9 (1).

(3) The Scheme shall commence operation on the 1st day of January 1977. Forms
of Assistance

5. For the purposes of this agreement the various forms of assistance under
the Scheme are referred to as follows: PART A

   (a)  the assistance provided for in Part 2 of the Schedule-as debt
        reconstruction.

   (b)  the assistance provided for in Part 3 of the Schedule-as farm
        build-up.

   (c)  the assistance provided in Part 4 of the Schedule-as farm improvement.

   (d)  the assistance provided for in Part 5 of the Schedule-as
        rehabilitation. PART B

   (e)  the assistance provided for in Part 6 of the Schedule-as carry-on
        finance. PART C

   (f)  the assistance provided for in Part 7 of the Schedule-as household
        support. Allocation of Financial Assistance

6. (1) Subject to the provisions expressly made by this agreement, the
financial assistance that is to be made available by the Commonwealth to a
State under this agreement for the forms of assistance referred to in
paragraphs (a), (b) and (c) of Part A of clause 5 shall be allocated between
those forms of assistance in such proportions as the Commonwealth determines
after consultation with the State.

(2) A determination by the Commonwealth for the purposes of sub-clause (1)
shall specify a target percentage for commitments on farm build-up and on farm
improvement which the State shall endeavour to achieve and a maximum
percentage for commitments on debt reconstruction which the State may not
exceed without the prior approval of the Commonwealth.

(3) The consultations referred to in sub-clause (1) shall extend to
establishing by agreement between the Commonwealth and the State a firm
program of commitments of financial assistance for each four-monthly period
during the year.

(4) If during a financial year either the Commonwealth or a State informs the
other that it considers the allocation of the financial assistance by the
State or the program of commitments in respect of the year should be varied,
further consultations will be held between the Commonwealth and the State with
a view to varying the determination by the Commonwealth for the purposes of
this clause should the Commonwealth see fit to do so or varying the program of
commitments for the purposes of this clause as the case may be. Interest rates
for Parts A and C Assistance

7. (1) The rates of interest at which money is lent by the Authority under the
Scheme in providing the forms of assistance referred to in Part A and Part C
of clause 5 shall be as determined by the Authority in the circumstances of
the particular case.

(2) The Authority shall have the right to review the terms of repayment,
including interest rates, of individual accounts at any time and shall
exercise this right at regular intervals with the objective of the borrower
being encouraged to transfer to commercial credit as soon as circumstances
permit. Administration Expenses

8. (1) The Commonwealth and each State shall bear the administration expenses
of the provision by the State of assistance referred to in Parts A and C of
clause 5 as follows-

   (a)  up to the amount in each year which is equivalent to 2 per centum in
        value of the approvals for those forms of assistance in that year-by
        the Commonwealth and the State equally; and

   (b)  in excess of the amount in each year which is equivalent to 2 per
        centum in value of the approvals for those forms of assistance in that
        year-by the State.

(2) The Commonwealth and each State shall bear the administration expenses of
the provision by the State of assistance referred to in Part B of clause 5 in
the respective proportions that assistance is for the time being provided by
the Commonwealth and the State in respect of the relevant industry in
accordance with the agreement which establishes the relevant proportion of the
assistance in respect of that industry referred to in sub-clause 14 (2).
Amendment of Schedule

9. (1) The provisions of the Schedule to this agreement may be amended from
time to time by agreement between the Ministers of the Commonwealth and of the
States for the time being responsible for the administration of the Scheme.

(2) Where so agreed between the Commonwealth Minister and the Minister or
Ministers of the relevant State or States, any amendments to the provisions of
the Schedule to this agreement may be made and take effect as between the
Commonwealth and one or more of the States without affecting the operation of
this agreement as between the Commonwealth and a State the Minister of which
has not so agreed.

III-FINANCIAL ASSISTANCE Provisions of Financial Assistance

10. Subject to, and to the performance by a State of, the provisions of the
agreement, the Commonwealth will make financial assistance available to the
States for the purposes of the Scheme. Amount of Financial Assistance

11. (1) The amount of financial assistance to be made available by the
Commonwealth to each State for the forms of assistance referred to in Parts A
and C of clause 5 during a financial year shall be determined by the
Commonwealth before the commencement of the financial year following a meeting
of Commonwealth and State Ministers which will review the circumstances
relating to the financial year and which will give due consideration to
submissions made by the States not later than the end of February last
preceding the financial year and will have regard to such other criteria as
the Commonwealth considers appropriate.

(2) The amount of financial assistance to be made available by the
Commonwealth to a State for the forms of assistance referred to in Part B of
clause 5 shall be determined at the time the Commonwealth and the State agree
that the provision of such assistance is warranted. Advances

12. (1) The Treasurer may, at such time and in such amounts as he thinks fit,
make advances on account of the payment that may be made by the Commonwealth
under clause 14.

(2) An amount or part of an amount advanced by the Treasurer under this clause
may be deducted by the Commonwealth from an amount that subsequently becomes
payable under clause 14 or, if no further amounts will become payable under
that clause, shall be refunded by the State to the Commonwealth at the request
of the Treasurer. Use of Advances

13. A State shall ensure that an amount or any part of an amount advanced to
the State and not refunded under the last preceding clause is not used or
applied except for the operation of the Scheme. Payments of Financial
Assistance

14. The Commonwealth shall, from time to time, at the request of a State and
subject to the provisions of this agreement, make payments to the State of the
financial assistance to be provided to the State under this agreement:

(1) (a) in respect of the forms of assistance referred to in Parts A and C of
clause 5 in amounts equal to the expenditure by the State (other than
administration expenses) in the provision of those forms of assistance; and

   (b)  in respect of the forms of assistance referred to in Part B of clause
        5 in amounts equal to the relevant proportion of the expenditure by
        the State (other than administration expenses) in the provision of
        that form of assistance.
(2) For the purposes of paragraph (b) of sub-clause (1) ''the relevant
proportion'' means the proportion of the total cost of operation of the form
of assistance referred to in Part B of clause 5 as is from time to time agreed
between the Commonwealth and the State as being the proportion to be provided
by the Commonwealth. Supporting Financial Evidence

15. (1) A State shall furnish to the Treasurer such documents and other
evidence to justify the making of an advance under clause 12 or in support of
a request by the State for a payment to it by the Commonwealth under the last
preceding clause as the Treasurer may from time to time reasonably request,
whether the request by the Treasurer is made before or after the Commonwealth
has made the advance or a payment pursuant to the request by the State.

(2) Any statement of expenditure by a State furnished to the Treasurer in
connexion with a request by the State for a payment under clause 14 shall be
certified by the Auditor-General of the State or an officer authorized by the
Treasurer of the State as to its correctness in accordance with the books and
documents of the Authority. Interest on Part A Assistance

16. (1) Interest at the rate for the time being applicable under this clause
shall accrue in respect of so much of each amount that has been advanced or
paid to the State in respect of the forms of assistance referred to in Part A
of clause 5 as is repayable by the State under clause 17 and has not for the
time being been refunded or repaid to the Commonwealth, calculated from the
date upon which the advance or payment was made by the Commonwealth.

(2) The rate of interest referred to in sub-clause (1) shall be 7 per centum
per annum but shall be subject to renegotiation and redetermination at an
annual review of the Scheme to the intent that, in the event that as at the
1st day of January preceding the review there has been a variation of the long
term bond rate of 20 per centum or more of the long term bond rate as at the
1st day of January 1977 or the 1st day of January when the rate of interest
was last redetermined, as the case may be, the rate applicable under this
clause shall be redetermined having regard to the extent of that variation.

(3) A redetermination of the rate of interest under sub-clause (2) shall take
effect on a date to be specified by the determination.

(4) A reference in sub-clause (2) to the long term bond rate is a reference to
the rate that is equivalent to the rate of yield to maturity of the long term
loan of the loan raising by the Commonwealth in Australia for public
subscription last preceding the date to which the reference relates.

(5) Interest that accrues under this clause prior to the date upon which
interest becomes included in payments provided for in clause 17 shall be
payable on the 15th day of January and the 15th day of July each year.
Repayments with Interest of Part A Assistance

17. (1) Subject to the provisions of clause 20, each State shall repay to the
Commonwealth 85 per centum of each of the advances made to the State in
respect of the forms of assistance referred to in Part A of clause 5 and not
refunded or repaid under clause 12 and each of the payments made to the State
under clause 14 and not for the time being repaid, together with interest
referred to in sub-clause (3) of this clause by 34 half-yearly payments, that,
subject to any variation resulting from a redetermination of the rate of
interest under clause 16, are equal in amount.

(2) The first payment under sub-clause (1) shall be made on the 15th day of
July of the fourth financial year that wholly occurs after the advance or
payment was made by the Commonwealth to the State and subsequent payments
shall be made on each 15th day of January and 15th day of July thereafter
until the full amount of the repayment, including interest, has been paid.

(3) The interest to be included in payments referred to in sub-clause (1)
shall be the interest that, in accordance with sub-clauses (1) and (2) of
clause 16, accrues in respect of the relevant advance or payment on and from
the 15th day of January preceding the commencement of the fourth financial
year that wholly occurs after the advance or payment was made by the
Commonwealth. Repayments of Part B Assistance

18. (1) Each State shall, by way of repayment of the form of assistance
referred to in Part B of clause 5 pay to the Commonwealth by payments in
accordance with sub-clause (3) the amount that is calculated by subtracting
(b) from (a) where-

   (a)  is the amount which is the relevant proportion of the principal and
        interest repaid to the Authority by the recipients of that assistance;
        and

   (b)  is the amount which is the relevant proportion of the administration
        expenses of the Authority in providing that assistance.
(2) For the purposes of sub-clause (1) ''the relevant proportion'' means the
proportion of the total cost of the provision of the form of assistance
referred to in Part B of clause 5 as is from time to time agreed between the
Commonwealth and the State as being the proportion to be provided by the
Commonwealth.

(3) The State shall pay to the Commonwealth so much as is from half-year to
half-year calculated to be payable of the amount first referred to in
sub-clause (1) by consecutive half-yearly payments, the first payment to be
made on the 15th day of July or January that occurs after the first repayment
of principal and interest made by a recipient of the assistance to the
Authority and subsequent payments to be made on each succeeding 15th day of
January and July thereafter until no further amount is payable by the State in
pursuance of its obligation under sub-clause (1). Repayments of Part C
Assistance

19. Each State shall, by way of repayment of the form of assistance referred
to in Part C of clause 5, pay to the Commonwealth so much of that assistance
and interest thereon as is recouped by the State in any year from the
recipients of that assistance, such payments to be made on each 15th day of
January and 15th day of July next succeeding the receipt of those moneys by
the State. Prepayments by State

20. (1) In addition to making payments in accordance with clause 17, a State
may on the 15th day of January or on the 15th day of July in any year, after
having given to the Treasurer notice in writing of at least one month of its
intention to do so, pay to the Commonwealth an amount that has been specified
in the notice of the repayments that remain to be made by the State under that
clause.

(2) Interests shall accrue on amounts paid by a State in accordance with
sub-clause (1) at the rate that is for the time being the rate of interest
applicable under clause 16 calculated from the date of payment and compounded
with half-yearly rests on each 15th day of January and 15th day of July.

(3) When on any 15th day of January or 15th day of July the payment by the
State under clause 17 exceeds the amount by which the unrepaid balance of the
total amount repayable under that clause together with interest accrued on
that total amount up to and including that date exceeds the total of the
amounts paid by the State to the Commonwealth in accordance with sub-clause
(1) together with interest accrued on those amounts up to and including that
date under sub-clause (2), the State shall pay to the Commonwealth the amount
of the second-mentioned excess in lieu of the amount due under clause 17 and
no further payments shall be required to be made by the State to the
Commonwealth under that clause. Financial Administration and Adjustments

21. (1) Each State agrees that in respect of the forms of assistance referred
to in Part A of clause 5 the Scheme shall be operated by the State in such a
way that the amounts received by the Authority in the course of the operation
of the Scheme could be reasonably expected to equal the payments of principal
and interest which the State is required to make to the Commonwealth under
this agreement.

(2) Should a State certify that, without taking into account its
administration expenses, it has incurred losses under the Scheme in respect of
the form of assistance specified in Part A of clause 5 from circumstances
beyond its control arising after the date of this agreement, the Commonwealth
agrees to review the position with the State with a view to adjusting amounts
payable to the Commonwealth by the State under this agreement to the extent of
such losses.

(3) The provisions of this agreement in relation to the times at which
payments are to be made by the State to the Commonwealth and the amounts of
the payments that are to be made may be varied in such manner as is agreed
between the Commonwealth and the State upon a review carried out in accordance
with sub-clause (2). Audit

22. (1) The accounts, books, vouchers, documents and other records of a State
relating to the operation of the Scheme shall be subject to audit by the
Auditor-General of the State.

(2) A report on the audits in respect of each financial year shall be
furnished by the Auditor-General of the State to the Treasurer as soon as
possible after the completion of the financial year. Other Financial
Arrangements

23. Financial arrangements in connection with the Scheme other than those
provided for in this agreement shall be carried out as agreed from time to
time between the Treasurer and Treasurer of each State.

IV-GENERAL Review

24. The operation of the Scheme in relation to all of the States will be
reviewed from time to time as appropriate by the Commonwealth and the States
in the light of experience in its administration. Exchange of Information

25. The Authorities of the States and appropriate Commonwealth officers
associated with the Schemes for Rural Adjustment will meet together as
appropriate and at least once in each year and exchange information on any
matters pertinent to the Schemes. Provision of Information and Review

26. The Authority will supply to the Commonwealth from time to time such
information regarding the operation of the Scheme by the State as may be
requested by the Commonwealth and which is reasonably able to be supplied by
the Authority and will participate in periodic reviews of the effectiveness of
the Scheme.

THE SCHEDULE

RURAL ADJUSTMENT-OUTLINE OF SCHEME

PART 1-GENERAL PRINCIPLES

   (a)  All agricultural, horticultural and pastoral industries are included
        in the Scheme. It is recognised that in particular circumstances some
        industries may need additional special consideration.

   (b)  The general principle to be applied is to distribute the available
        resources as widely as practicable, but the over-riding objective is
        to help restore to economic viability those farms and farmers with the
        capacity to maintain viability once achieved.

   (c)  It is expected that each administering authority will avail itself of
        the best available advice on agricultural technology and market
        prospects.

   (d)  Companies will not be eligible for assistance unless the Authority,
        having considered the shareholdings and being satisfied that the
        shareholders are bona fide primary producers relying primarily on the
        income of the company for their livelihood, considers it appropriate
        to provide assistance.

   (e)  In cases of assistance under the heading of debt reconstruction or by
        way of advances for carry-on expenses, plant, livestock and property
        development, it is an essential part of the Scheme that adequate
        supervision of property management and the financial affairs of the
        assisted farmer is maintained. If the Authority deems it necessary, it
        may require that moneys receivable on account of the property will be
        received by the Authority or its agent or a body nominated by the
        Authority, payments within the approved budgets being made through
        normal channels.

   (f)  Repayment of advances made by the Authority and interest due thereon
        will be secured by the best and most appropriate security available,
        recognising that this may involve ranking after existing securities.

   (g)  A transfer of the property or any interest therein before advances
        made by the Authority are repaid will be permitted only with the
        consent of the Authority, which will upon transfer, or upon succession
        on the death of the borrower, have the right to review its
        arrangements in respect of the property.

   (h)  The arrangements with the assisted farmer will be subject to regular
        review by the Authority from time to time. They may be terminated if
        the farmer ceases to work the property personally, fails to observe
        his obligations and undertakings under the arrangements or if the
        Authority decides that for any reason he lacks reasonable prospects of
        successful economic operation. Otherwise the arrangements shall be
        terminable when the Authority decides that his prospects of successful
        economic operation are no longer dependent on the extension of
        concessional finance. Upon termination of the arrangements, all debts
        will then become due and payable.

   (i)  The eligibility of a farmer for one form of assistance under this
        Scheme will not necessarily be affected by his having applied for or
        received another form of assistance under the Scheme.

   (j)  The rate of interest payable will be decided by the Authority in the
        circumstances of the particular case. The Authority will have the
        right to review the interest rates on individual accounts at any time
        and shall review the terms of repayment, including interest rates, at
        regular intervals with the objective of the borrower being encouraged
        to transfer to commercial credit as soon as circumstances permit.

PART 2-DEBT RECONSTRUCTION (1) Purpose

To assist a farmer who, although having sound prospects of long term
commercial viability, has used all his cash and credit resources and cannot
meet his financial commitments. (2) Tests of Eligibility

   (a)  The applicant is unable to obtain finance on reasonable terms to carry
        on, from any other normal source and is thus in danger of losing
        property or other assets if not assisted under the Scheme.

   (b)  There is a reasonable prospect of successful operation with the
        assistance possible under the Scheme, the prime requirements being
        ability to service commitments and to reach the stage of commercial
        viability within a reasonable time.

   (c)  Assistance is merited and the applicant's difficulties are not
        substantially due to circumstances within his control. (3) Nature of
        Assistance

The assistance to be provided may include where necessary:

   (a)  A re-arrangement and/or a composition of debts to allow more time for
        payment.

   (b)  The negotiation of a concessional rate of interest for existing rates.

   (c)  Advances of additional funds for carry-on expenses, livestock and
        further property development.

   (d)  Where the State legislation so provides, a protection order against
        any creditor who has threatened action for debt, to apply while the
        application is under consideration and subject to such extensions as
        the administering Authority may from time to time determine. (4)
        Method of Operation

   (a)  A re-arrangement and/or composition may take the form of the Authority
        advancing money to pay off in whole or in part the creditors, (whether
        or not the debts have been written down by the creditors under (b)
        below), excluding the Crown. There may be an arrangement by the
        secured or unsecured creditors to postpone repayments of principal and
        to refrain from taking action against the debtor for a specified time.
        Composition arrangements require the agreement in writing of
        creditors.

   (b)  The possibility of creditors, including the Crown, local authorities
        and public utilities being asked to defer or write off part of their
        debts should be considered. Creditors should not be pressed to the
        extent that the availability of credit to rural industries is damaged.

   (c)  Additional funds advanced for carry-on expenses, livestock and further
        property development will be striclty limited to the minimum which the
        Authority considers is required to enable the farmer to carry on and
        free himself from dependence on the Authority's assistance within the
        term of the advances made to him by the Authority.

   (d)  In exceptional cases, advances for carry-on expenses and livestock may
        be made to a farmer who is not yet in immediate danger of losing
        property or other assets but who, in the opinion of the Authority, is
        likely to reach that position without such assistance, such cases
        being tested strictly against the remaining eligibility criteria.

   (e)  Where protection orders apply it is desirable to establish a
        relationship with creditors such that the Authority is acting in
        combined interests of applicant and creditors, secured and unsecured.
        (5) Limits
The Authority shall have discretion to determine:

   (a)  The terms and conditions of any loan it may make up to a maximum
        repayment term of 30 years. An initial period of freedom from
        repayments of principal may be allowed depending on the circumstances
        of the case and the interest rate to be charged.

   (b)  The proportion of debts paid off by advances in any one case.

   (c)  The total of advances which may be made by the Authority in any one
        case.

PART 3-FARM BUILD-UP (1) Purpose

To supplement, without discouraging, the normal processes under which
properties which do not have reasonable prospects of long term viability under
existing and prospective circumstances are amalgamated with an adjoining
holding or are subdivided and the subdivided proportions are added to
adjoining holdings, or to assist a farmer with a property too small to be
economic to purchase additional land to build up his property to at least
economic size. (2) Tests of Eligibility

   (a)  The owner of the property to be purchased wishes to sell or accepts
        that he is obliged to sell.

   (b)  The purchaser is unable to obtain the finance applied for on
        reasonable terms from any other normal source.

   (c)  The Authority is satisfied that the built up property will be of
        sufficient size to offer sound prospects of long term commercial
        viability.

   (d)  Where an application is made by an adjoining owner for assistance
        under the scheme to purchase an uneconomic property, but there is a
        possibility of sale of the property to another adjoining owner who
        does not require assistance under the Scheme, assistance will be
        provided only if the applicant's property would be built up from an
        uneconomic to an economic size.
(e) The term ''adjoining holding'' includes a holding which is within a
reasonable working distance of the holding under consideration where there is
no impediment to the two holdings being worked as a single unit. (3) Nature of
Assistance

   (a)  The provision to the purchaser of finance to assist the purchase of an
        adjoining holding or part of an adjoining holding.

   (b)  Grants at the discretion of an Authority to cover, in whole or in
        part, losses sustained from the reduction in value of assets which are
        either not useful or less useful for the build up property.

   (c)  Advances for carry-on expenses, plant, livestock and property
        development in respect of the additional land where not available from
        other normal sources. (4) Method of Operation

   (a)  Normally a property will be purchased only where arrangements have
        been made for an adjoining owner to take over the property or for the
        property to be subdivided and the subdivided parts added to adjoining
        properties. The Authority may purchase an uneconomic property in
        advance of arrangements having been made for the property to be added
        to an adjoining property or properties where the program of farm
        adjustment could not otherwise be achieved. The Authority may dispose
        of such a property on commercial terms where the purchaser does not
        require or is not eligible for assistance under this Part.

   (b)  Where appropriate, the Authority could take the initiative to
        encourage an adjoining owner to purchase an uneconomic farm where the
        Authority is aware that the owner of the uneconomic farm wished to
        leave the industry or accepts that he is obliged to leave the
        industry; this applies particularly where it is unlikely that the
        appropriate purchaser or purchasers will be able to purchase the
        additional land unless the Authority provides assistance for the
        purchase.

   (c)  Since it is required that there must be reasonable prospects of
        successful operation of the built up property, the Authority is
        considering the transfer price of land will have regard to its
        productivity value.

   (d)  Grants to cover losses on the write off of redundant assets will be
        kept to a minimum.

   (e)  Where advances are made for carry-on expenses, plant, livestock and
        property development, the advances will be strictly limited to the
        minimum which the Authority considers is required to enable the farmer
        to carry on and free himself from dependence on the Authority's
        assistance within the term of the advances made to him by the
        Authority.

   (f)  While any advances by the Authority in respect of built up property
        remain unpaid, the transfer of part of the built up property will not
        be permitted if this would result in a property of a size too small to
        be economic. (5) Limits

   (a)  The term of a loan by the Authority and conditions of repayment of
        principal will be at the discretion of the Authority up to a maximum
        repayment term of 30 years. An initial period of freedom from
        repayments of principal may be allowed depending on the circumstances
        of the case and the interest rate to be charged.

   (b)  The total of advances which may be made by the Authority in any one
        case shall also be at its discretion.

PART 4-FARM IMPROVEMENT (1) Purpose

To assist the restoration of an uneconomic property to economic viability by
improving the effective use of an existing farm without adding to its area.
(2) Tests of Eligibility

   (a)  The existing farm has been, but is not now, viable and is of
        sufficient area and the proposed improvements are of such a kind as to
        offer sound prospects of restoration to long term commercial viability
        if assistance under the Scheme were provided.

   (b)  The applicant is unable to obtain finance on reasonable terms from any
        other normal source. (3) Nature of Assistance

   (a)  Advances for plant, livestock, carry-on expenses and further property
        development intended to restore the economic viability of the farm
        either in the existing form of production or in another form of
        production which may be undertaken in combination with, or completely
        replace, the existing form of production.

   (b)  Grants at the discretion of the Authority to cover, in whole or in
        part, losses sustained from the reduction in value of assets which are
        either not useful or are less useful because of the changed pattern of
        farm operations. (4) Method of Operation

   (a)  Advances made for the purposes of this Part will be limited to the
        minimum which the Authority considers is required to enable the farmer
        to achieve the objective of the improvement program.

   (b)  Grants to cover the write off of redundant assets will be kept to a
        minimum and will be made only where the changed pattern of farm
        operations is, in the opinion of the Authority, essential to the
        restoration of long term commercial viability.

   (c)  While any advances by the Authority in respect of improvements for
        which finance is provided under this Part remain unpaid, the transfer
        of part of the impoved property will not be permitted if this would
        result in a property of a size too small to be economic. (5) Limits

   (a)  The term of a loan by the Authority and the conditions of repayment of
        principal will be at the discretion of the Authority up to a maximum
        repayment term of 30 years. An initial period of freedom from
        repayments of principal may be allowed where circumstances warrant
        this concession.

   (b)  The total of advances which may be made by the Authority in any one
        case shall be at its discretion.

PART 5-REHABILITATION (1) Purpose

To provide limited assistance to those obliged to leave the industry where in
the opinion of the Authority administering the Scheme this is necessary to
alleviate conditions of personal hardship. (2) Conditions of Eligibility

   (a)  The applicant's property must have been purchased by an adjoining
        owner who has been assisted under the farm build-up provisions to make
        the purchase or the applicant must have been unable to secure
        assistance under the debt reconstruction provisions because his
        property is assessed not to have sound prospects of long term
        commercial viability; and

   (b)  Taking into account the financial position of the applicant after his
        property has been sold, he will suffer financial hardship which will
        be alleviated by assistance under these provisions. (3) Nature of
        Assistance

A loan on such conditions as to interest rate, if any, and repayment as are
determined by the Authority up to a maximum of $5,000 in any one case. The
loan may be converted to a grant at the discretion of the Authority. (4)
Method of Operation

The assistance will be available at the discretion of the Authority
administering the Scheme.

PART 6-CARRY-ON FINANCE (1) Purpose

To provide advances for essential carry-on purposes in rural industries which
it is agreed from time to time between the Commonwealth and a State or States
are suffering a severe market downturn or similar situation (but excluding
circumstances covered by natural disaster arrangements). (2) Tests of
Eligibility

   (a)  The applicant has reasonable prospects of long term commercial
        viability, having regard to his asset structure, on the assumption of
        a market recovery to the long term trend.

   (b)  The applicant is unable to obtain carry-on finance on reasonable terms
        from any other normal source.

   (c)  Assistance is merited and the applicant's difficulties are not
        substantially due to circumstances within his control. (3) Nature of
        Assistance

Advances for essential carry-on expenses. (4) Method of Operation

   (a)  In relaton to the rural industries referred to in clause 1 of this
        Part, the Commonwealth and the State will agree upon the terms and
        conditions upon which assistance is to be given to farmers within
        those rural industries and the Commonwealth will thereupon publish a
        notice to that effect in the Australian Government Gazette.

   (b)  Farmers within those rural industries who fulfil the eligibility
        requirements set out above will then apply to the Authority in their
        own State for carry-on assistance.

   (c)  Assistance will be made available at the discretion of the Authority
        and will be limited to the minimum which the Authority considers is
        required to enable the farmer to carry on and free himself from
        dependence on the Authority's assistance.

PART 7-HOUSEHOLD SUPPORT (1) Purpose

To provide assistance for up to one year to non-viable farmers having
insufficient resources to meet living expenses and who are in need of
assistance to alleviate conditions of personal and family hardship while the
farmer considers whether to adjust out of farming. (2) Tests of Eligibility

The applicant is assessed as non-viable in the long term is unable to obtain
financial assistance from any other normal source and will suffer personal and
family hardship which will be alleviated by assistance under these provisions.
(3) Nature of Assistance

   (a)  An advance provided for one year sufficient to raise the applicant's
        estimated future income from all sources to the level of payment which
        would be applicable to him if he were eligible for unemployment
        benefits. An extension to two years may be allowed at the discretion
        of the Authority in those cases where a demonstrable effort has been
        made to move out of farming.

   (b)  Where it would take some time to assess an applicant's entitlement,
        interim assistance may be granted by the Authority as a loan at a
        level of payment which would be applicable to him if he were eligible
        for unemployment benefits provided there is prima facie evidence or
        urgent need and unavailability of alternative sources of finance.

   (c)  If the Authority subsequently determines that the applicant has a
        viable enterprise, the interim assistance will be regarded as carry-on
        finance.

   (d)  The carry-on finance would represent part or all of the finance to be
        provided under a Scheme operative at the time and would be repaid
        under the conditions pertaining to that Scheme.

   (e)  If the Authority determines that an applicant does not have a viable
        enterprise he will be eligible for household support assistance, and
        any interim assistance he may have received will be regarded as
        household support assistance.

   (f)  Advances of household support assistance are to be paid to the farmer
        at intervals decided by the Authority, but not exceeding three months.
        Prospective income for each period will be assessed by the Authority
        on the basis of declarations made by the applicant. Each applicant's
        income situation is to be reviewed by the Authority, on the basis of
        declarations made by the applicant, when further advances are to be
        made to him.

   (g)  Where a farmer obtains employment or his income is higher than allowed
        for by the Authority when making an advance, the farmer is required to
        notify the Authority and repay any excess household support assistance
        he may have received.

   (h)  In the event of the Authority becoming aware that an applicant has
        received more than he was entitled to it may exercise its discretion
        in seeking repayment of the excess.

        (i)    At the end of the first period of six months for which a farmer
               receives household support assistance the advances made to him
               may be converted by the Authority to a grant.

   (j)  If the farmer adjusts out of farming within three years of the time he
        first received household support, any advances made to him and not
        already converted to a grant may be so converted by the Authority.

   (k)  If an applicant does not adjust out of farming within three years
        after first receiving household support assistance any advances made
        to him and not converted to a grant will be repayable to the
        Authority, together with interest accruing fom the commencement of the
        advance, within a further period of seven years.

   (l)  A farmer who is eligible for household support and who is prepared to
        adjust out of farming may, at the discretion of the Authority, receive
        in lieu of household support assistance a lump sum payment of $3,000
        less any household support assistance paid to him prior to adjusting
        out of farming. Such payment is additional to any other payments that
        might be available to him under the Scheme.

   (m)  For the purposes of these provisions a farmer is regarded as having
        adjusted out of farming when, in the judgment of the Authority, he has
        effectively disposed of his productive resources.
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