Federal Register of Legislation - Australian Government

Primary content

Dairy Adjustment Act 1974

Authoritative Version
Act No. 166 of 1974 as amended, taking into account amendments up to Act No. 111 of 2009
An Act to provide Financial Assistance in connexion with Dairy Adjustment Programs
Administered by: Agriculture and Water Resources
Registered 20 Nov 2009
Start Date 17 Nov 2009
End Date 06 May 2016
Date of repeal 06 May 2016
Repealed by Omnibus Repeal Day (Autumn 2015) Act 2016

Dairy Adjustment Act 1974

Act No. 166 of 1974 as amended

This compilation was prepared on 20 November 2009
taking into account amendments up to Act No. 111 of 2009

The text of any of those amendments not in force
on that date is appended in the Notes section

The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section

Prepared by the Office of Legislative Drafting and Publishing,
Attorney‑General’s Department, Canberra

  

  

  


Contents

Part I—Preliminary                                                                                                              1

1............ Short title [see Note 1]........................................................................ 1

2............ Commencement [see Note 1].............................................................. 1

3............ Repeal and savings.............................................................................. 1

4............ Interpretation....................................................................................... 2

Part II—Dairy Adjustment Program                                                                        3

5............ Agreements with States....................................................................... 3

6............ Definition for purposes of arrangements............................................. 3

7............ State may enter into agreements to acquire and dispose of uneconomic dairy farms                4

8............ State may approve disposal of uneconomic dairy farms...................... 4

9............ Land proposed to be acquired or disposed of may be treated as uneconomic dairy farm          5

10.......... Loans for personal hardship where uneconomic farms disposed of.... 5

11.......... Loans for conversion of uneconomic dairy farms to other rural use... 6

12.......... Loans for development of uneconomic dairy farms............................ 7

13.......... Loans for development of combined land........................................... 7

14.......... Compensation for loss of value of structural improvements where land combined  8

15.......... Loans for conversion of dairy farms to refrigerated bulk milk supply 9

16.......... Loans for conversion of dairy factories to deal with refrigerated bulk milk supply  10

16A....... Carry‑on loans.................................................................................. 11

16B....... Payments for loss of value of fixtures and personal property........... 11

Part III—Finance                                                                                                                 13

17.......... Payments by the Commonwealth...................................................... 13

18.......... Total amounts available for payment to States................................... 13

19.......... Conditions of payments.................................................................... 13

20.......... Amounts repayable by State.............................................................. 13

21.......... Advances.......................................................................................... 14

Notes                                                                                                                                             17


An Act to provide Financial Assistance in connexion with Dairy Adjustment Programs

WHEREAS the policies for assistance to the dairying industry announced by the Australian Government before the dissolution of the Parliament on 11 April 1974 were given effect to in part only by the Marginal Dairy Farms Agreements Act 1974 and further provision is necessary to give effect to the remainder of those policies:

AND WHEREAS, by reason of the matters recited in the Marginal Dairy Farms Agreements Act 1974, it is appropriate that the further provision should be made without receipt of a report of the Industries Assistance Commission in relation to the matter of assistance to the dairying industry:

AND WHEREAS it is expedient to give effect to the foregoing by repealing the Marginal Dairy Farms Agreements Act 1970‑1974 and re‑enacting and extending the provisions of that Act to give effect to the whole of the policies so announced:

BE IT THEREFORE ENACTED by the Queen, the Senate and the House of Representatives of Australia, as follows:

Part IPreliminary

  

1  Short title [see Note 1]

                   This Act may be cited as the Dairy Adjustment Act 1974.

2  Commencement [see Note 1]

                   This Act shall come into operation on the day on which it receives the Royal Assent.

3  Repeal and savings

             (1)  The following Acts are repealed:

Marginal Dairy Farms Agreements Act 1970.

Marginal Dairy Farms Agreements Act 1974.

             (2)  Notwithstanding subsection (1), any agreement in force under the Marginal Dairy Farms Agreements Act 1970‑1974 immediately before the commencement of this Act continues in force after that commencement as if it had been made under this Act and as if the marginal dairy farms reconstruction scheme to be operated by the State in accordance with the agreement were a dairy adjustment program to be carried out by the State in accordance with arrangements set out in the agreement.

4  Interpretation

             (1)  In this Act, unless the contrary intention appears:

acquisition includes acceptance of the surrender of a leasehold interest and acquire has a corresponding meaning.

agreement means an agreement made in pursuance of subsection 5(1).

arrangements mean arrangements set out in an agreement.

disposal includes the surrender or grant of a leasehold interest, and dispose of has a corresponding meaning.

land includes a leasehold interest in land.

price includes the consideration for the surrender of a leasehold interest.

purchase, in relation to vehicles, plant and equipment, includes hire under a hire‑purchase agreement or under a lease.

State Minister means a Minister of State of a State or a person authorized by such a Minister.

             (2)  A reference in this Act to an agreement made under this Act includes a reference to an agreement continued in force by subsection 3(2).


 

Part IIDairy Adjustment Program

  

5  Agreements with States

             (1)  The Commonwealth may make with any State an agreement providing for the making of payments by the Commonwealth to the State for the purposes of a dairy adjustment program to be carried out by the State in accordance with arrangements set out in the agreement.

             (2)  An agreement made under subsection (1) may be amended by a further agreement but so that the amended agreement complies with the requirements that are applicable to agreements made in pursuance of that subsection.

             (3)  An agreement shall not be made under subsection (1), unless the Minister is satisfied that the arrangements are in accordance with the provisions of this Part.

             (4)  An agreement under subsection (1) or further agreement under subsection (2) may be made, and implemented, notwithstanding the Industries Assistance Commission Act 1973.

             (5)  The Minister shall cause a copy of every agreement made under subsection (1) or further agreement made under subsection (2) to be laid before each House of the Parliament within 15 sitting days of that House after the date on which the agreement or further agreement is made.

6  Definition for purposes of arrangements

                   The expression uneconomic dairy farm shall be so defined for the purposes of the arrangements as to include only rural properties not less than one‑half of the gross income from which is obtained from the production of milk or cream, being rural properties that are not reasonably capable, if used only for dairying and purposes incidental to dairying, of producing a reasonable level of income, being a level ascertained in the manner provided by or under the agreement.

7  State may enter into agreements to acquire and dispose of uneconomic dairy farms

                   The arrangements may provide for:

                     (a)  the making of agreements between the State or an authority of the State and the owners of land comprised in uneconomic dairy farms in the State for the disposal of the land (including structural improvements on the land) to the State or the authority of the State at prices based on market values current at the time of the disposal; and

                     (b)  the disposal by the State or the authority of the State of land that becomes available for such disposal as a result of acquisitions under the arrangements, but so that:

                              (i)  subject to subparagraph (ii), the price or rent in respect of such a disposal shall be based on market values current at the time of the disposal, but may take into account the nature of the proposed use of the land;

                             (ii)  a person obtaining land from the State or the authority of the State will not be required to pay for structural improvements on the land that are unsuitable or redundant in relation to the proposed use of the land by that person;

                            (iii)  land will not be disposed of for use primarily for farming unless it is to be so used as part of a rural property that constitutes an economic unit in accordance with tests provided for by or under the agreement; and

                            (iv)  disposals under the arrangements will be made so as to encourage the most practicable and economic use of land, including, so far as is consistent with such land use, the diversification of production.

8  State may approve disposal of uneconomic dairy farms

                   The arrangements may provide that:

                     (a)  the State or an authority of the State may give approval to the disposal by the owner of an uneconomic dairy farm of land comprised in the farm (including structural improvements on the land) to a person (in this section referred to as the purchaser) other than the State or an authority of the State if:

                              (i)  the price of the land and any improvements is based on market values current at the time of the disposal; and

                             (ii)  the requirements specified in subparagraphs 7(b)(iii) and (iv) are met; and

                     (b)  if such an approval is given, the State or the authority may, for the purpose of assisting the purchaser to acquire the land:

                              (i)  pay to the purchaser an amount equal to the amount by which the price to be paid by the purchaser exceeds the price that he would have been required to pay if he had acquired the land from the State under the arrangements; and

                             (ii)  make a loan to the purchaser of an amount not exceeding the amount by which the price exceeds the amount referred to in subparagraph (i).

9  Land proposed to be acquired or disposed of may be treated as uneconomic dairy farm

                   The arrangements may provide that, where:

                     (a)  the Minister or a person authorized by the Minister for the purpose; and

                     (b)  the State Minister concerned;

are satisfied that a proposed acquisition or a proposed disposal, or a proposed acquisition and subsequent disposal, under the arrangements, of land comprised in a rural property, not being an uneconomic dairy farm, would assist adjustment in the dairying industry, the land may, under the arrangements, be dealt with as proposed as if the property were an uneconomic dairy farm.

10  Loans for personal hardship where uneconomic farms disposed of

                   The arrangements may provide for the making of loans (including interest‑free loans) by the State or an authority of the State to persons who have, after 20 August 1974, disposed of, to, or with the approval of, the State or the authority, rural properties that were, at the time of disposal, uneconomic dairy farms, being loans for the purpose of alleviating conditions of personal hardship being borne by the person concerned or a dependant of that person and not exceeding, in any case, the amount fixed in the agreement in which the arrangements are set out as the maximum amount for such a loan.

11  Loans for conversion of uneconomic dairy farms to other rural use

             (1)  The arrangements may provide for:

                     (a)  the making of loans by the State or an authority of the State to the owners of uneconomic dairy farms for the purpose of meeting, in the case of a particular farm, the cost of converting the farm, wholly or in part, to a rural use other than dairying by one or more of the following methods:

                              (i)  the acquisition of land adjoining, or within a reasonable working distance of, the farm for the purpose of working that land and land comprised in the farm as a single unit;

                             (ii)  the improvement of, or the erection of structural improvements on, land comprised in the farm, including any land referred to in subparagraph (i);

                            (iii)  the purchase of livestock or equipment;

                     (b)  the making of loans by the State or an authority of the State to the owners of uneconomic dairy farms that are, wholly or in part, being converted to a rural use other than dairying for the purpose of meeting, in the case of a particular farm, the whole or a part of the cost of carrying on the farm during the period of conversion; and

                     (c)  where fixtures or personal property (including livestock) used for dairying on an uneconomic dairy farm that is, wholly or in part, being converted to a rural use other than dairying will lose some or all of their or its value to the owner of the farm after the conversion has been effected—the payment by the State or an authority of the State to the owner of the farm of an amount in respect of that loss of value.

             (2)  Where the arrangements make provision in accordance with subsection (1), the arrangements shall further provide that the assistance specified in that subsection shall not be given in the case of a particular farm unless the State Minister concerned or the authority of the State is satisfied that:

                     (a)  the proposed use of land comprised in the farm (including any land proposed to be acquired) will be a more practicable and economic use of the land than dairying;

                     (b)  there is a reasonable prospect that, by reason of the assistance, the farm (including any land proposed to be acquired) will produce a reasonable level of income, being a level ascertained in the manner provided by or under the agreement in which the arrangements are set out; and

                     (c)  the owner to be assisted has been unable to obtain a loan on reasonable terms from normal financial sources for the purposes for which the assistance is to be given.

12  Loans for development of uneconomic dairy farms

             (1)  The arrangements may provide for the making of loans by the State or an authority of the State to the owners of uneconomic dairy farms for the purpose of meeting, in the case of a particular farm:

                     (a)  the cost of developing the farm to the point where the farm is producing from dairying and activities incidental to dairying a reasonable level of income, being a level ascertained in the manner provided by or under the agreement in which the arrangements are set out; and

                     (b)  the whole or a part of the cost of carrying on the farm during the period of development.

             (2)  Where the arrangements make provision in accordance with subsection (1), the arrangements shall further provide that the assistance specified in that subsection shall not be given unless the State Minister concerned or the authority of the State is satisfied that the owner to be assisted has been unable to obtain a loan on reasonable terms from normal financial sources for the purposes for which the assistance is to be given.

13  Loans for development of combined land

             (1)  The arrangements may provide for:

                     (a)  the making of loans by the State or an authority of the State to persons who have acquired under the arrangements land adjoining or within a reasonable working distance of other land owned by them, being in the case of a particular person a loan for the purpose of developing as a rural property the land comprising both the land so acquired and that other land owned by him (in this section referred to as the combined land) by one or more of the following methods:

                              (i)  the improvement of, or the erection of structural improvements on, the combined land;

                             (ii)  the purchase of livestock or equipment; and

                     (b)  the making of loans by the State or an authority of the State to persons referred to in paragraph (a) for the purpose of meeting the whole or a part of the cost of working the combined land as a rural property during the period of development.

             (2)  Where the arrangements make provision in accordance with subsection (1), the arrangements shall further provide that the assistance specified in that subsection shall not be given unless the State Minister concerned or the authority of the State is satisfied that the person to be assisted has been unable to obtain a loan on reasonable terms from normal financial sources for the purposes for which the assistance is to be given.

14  Compensation for loss of value of structural improvements where land combined

             (1)  The arrangements may provide that, where:

                     (a)  the owner of a rural property has acquired land under the arrangements for the purpose of incorporating it into the rural property; and

                     (b)  that incorporation has had the effect of causing structural improvements that were, at the time of the acquisition, on the original rural property to become unsuitable or redundant in relation to the proposed use of the combined property by that owner;

the State or an authority of the State may pay to that owner an amount in respect of the loss of value of those improvements to that owner.

             (2)  Where the arrangements make provision in accordance with subsection (1), the arrangements shall further provide that the assistance specified in that subsection shall not be given with respect to structural improvements that are not ordinarily used for dairy purposes unless the giving of the assistance is approved by:

                     (a)  the Minister or a person authorized by the Minister for the purpose; and

                     (b)  the State Minister concerned.

15  Loans for conversion of dairy farms to refrigerated bulk milk supply

             (1)  The arrangements may provide for:

                     (a)  the making of interest‑free loans by the State or an authority of the State to the owners of dairy farms for the purpose of:

                              (i)  meeting, in the case of a particular farm, the cost of the purchase and installation on the farm of a refrigerated vat for the storage of wholemilk intended for use as fluid milk for human consumption or in the manufacture of butter, cheese or other products; and

                             (ii)  making such other improvements on the farm as are required to enable the wholemilk in the vat to be collected from the farm; and

                     (b)  the making of interest‑free loans by the State or an authority of the State to the owners of dairy farms for the purpose of repaying amounts borrowed by them on or after 23 July 1973 and before 21 August 1974 for a purpose specified in paragraph (a) and not repaid, and the making of payments for the purpose of reimbursing the owners of dairy farms for the interest paid by them on amounts so borrowed.

             (2)  Where the arrangements make provision in accordance with a paragraph of subsection (1), the arrangements:

                     (a)  shall further provide that the assistance specified in that paragraph shall not be given in the case of a particular farm unless the State Minister concerned or the authority of the State is satisfied that there is a reasonable prospect that, by reason of the assistance, the farm will produce a reasonable level of income, being a level ascertained in the manner provided by or under the agreement in which the arrangements are set out; and

                     (b)  may also provide that it shall be a condition of the making of an interest‑free loan that the borrower is to be required to pay a monetary penalty for failure to repay an instalment of the loan on, or within a specified period after, the due date for that repayment.

16  Loans for conversion of dairy factories to deal with refrigerated bulk milk supply

             (1)  The arrangements may provide for the making of loans by the State or an authority of the State to the owners of dairy factories, being loans for the purpose of meeting, in the case of a particular factory, the whole or a part of the costs incurred by the owner of the factory after 1 July 1974 in connexion with any alterations (including structural alterations) made, vehicles purchased and plant and equipment purchased and installed after that date, being alterations, vehicles, plant and equipment:

                     (a)  that were required to provide adequate facilities:

                              (i)  for the supply of wholemilk as refrigerated bulk milk to the factory; or

                             (ii)  for the receipt, storage or processing of the wholemilk at the factory;

                            in consequence of suppliers of wholemilk to the factory having recently commenced, whether before or after the commencement of this Act, to supply wholemilk to the factory as refrigerated bulk milk; or

                     (b)  that the State Minister concerned or the authority of the State is satisfied are required to provide adequate facilities of a kind specified in paragraph (a) for the purpose of enabling suppliers of wholemilk to the factory to commence to supply wholemilk to the factory as refrigerated bulk milk.

             (2)  Where the arrangements make provision in accordance with subsection (1), the arrangements shall further provide that assistance for alterations, plant and equipment for the processing of wholemilk shall be given, in the case of a particular dairy factory, only with respect to alterations, plant and equipment required, in accordance with that subsection, for the processing of wholemilk so supplied preparatory to the manufacture of any product derived from the wholemilk, unless the giving of the assistance is approved by:

                     (a)  the Minister or a person authorized by the Minister for the purpose; and

                     (b)  the State Minister concerned.

             (3)  Where the arrangements make provision in accordance with subsection (1), the arrangements shall further provide that the assistance specified in that subsection shall not be given unless the State is satisfied that the owner to be assisted has been unable to obtain a loan on reasonable terms from normal financial sources for the purposes for which the assistance is to be given.

             (4)  In this section, a reference to the processing of wholemilk includes a reference to:

                     (a)  cooling, testing, grading or pasteurising wholemilk or treating wholemilk in any other manner;

                     (b)  putting wholemilk into bottles, cartons or other containers; and

                     (c)  the manufacture of any product derived from wholemilk.

16A  Carry‑on loans

             (1)  The arrangements may provide for the making of loans by the State or an authority of the State to the owners of dairy farms for the purpose of meeting, in the case of a particular farm, the whole or a part of the cost of carrying on the farm during a period of adverse market conditions.

             (2)  Where the arrangements make provision in accordance with subsection (1), the arrangements shall further provide that the assistance specified in that subsection shall not be given in the case of a particular farm unless the State Minister concerned or the authority of the State is satisfied that:

                     (a)  the dairy farm is for the time being an uneconomic dairy farm but would cease to be an uneconomic dairy farm if satisfactory market conditions were restored; and

                     (b)  the owner to be assisted has been unable to obtain a loan on reasonable terms from normal financial sources for the purpose referred to in subsection (1).

16B  Payments for loss of value of fixtures and personal property

                   The arrangements may provide that, where:

                     (a)  a rural property, being:

                              (i)  an uneconomic dairy farm; or

                             (ii)  a property a part (being a part less than one‑half) of the gross income from which comes from the production of milk and cream and which, if used only for dairying and purposes incidental to dairying, is not reasonably capable of producing a reasonable level of income, being a level ascertained in the manner referred to in section 6,

                            is to be converted, wholly or in part, to a rural use other than dairying; and

                     (b)  fixtures or personal property (including livestock) used on the farm for dairying will lose some or all of their or its value to the owner of the farm after the conversion has been effected,

the State or an authority of the State may make a payment to the owner of the farm in respect of that loss of value.


 

Part IIIFinance

  

17  Payments by the Commonwealth

                   An agreement may make provision for and in relation to payments by the Commonwealth to a State in respect of expenditure by a State or an authority of a State, in accordance with applications, under the arrangements set out in the agreement, lodged with, and approved by, the State or the authority before 1 July 1976 1 January 1977 or such later date as is fixed by Proclamation, for the purposes of the dairy adjustment program to which that agreement relates or for purposes that, in the opinion of the Minister, are conducive to the objectives of that program.

18  Total amounts available for payment to States

                   The total of all payments (including advances) by the Commonwealth in accordance with this Act or in accordance with an Act repealed by this Act shall not exceed:

                     (a)  the amount of $46,500,000; or

                     (b)  if the Parliament appropriates any further amount or amounts for the purposes of this Act—the sum of $46,500,000 and that amount or those amounts,

and the agreements shall be so expressed that they do not provide for payments by the Commonwealth in excess of that first‑mentioned amount or that sum, as the case may be.

19  Conditions of payments

                   A payment (including an advance) to a State by the Commonwealth under an agreement is paid by way of financial assistance to the State on the terms and conditions provided by the agreement.

20  Amounts repayable by State

             (1)  Each agreement shall provide for:

                     (a)  the repayment to the Commonwealth, by instalments or otherwise, of an amount equal to one‑half of each payment to the State, in accordance with section 17, in respect of the amounts expended by the State or an authority of the State as:

                              (i)  the price of land (including structural improvements on the land) acquired by the State or the authority under the arrangements set out in the agreement; or

                             (ii)  a payment or loan made under the arrangements so set out for the purpose of assisting in the acquisition of land;

                            the repayment to be completed not later than 25 years from the date of the payment to the State; and

                     (b)  the payment to the Commonwealth by the State of interest on amounts so repayable and not repaid, from the date of the relevant payment to the State, at the rate of 6 per centum per annum.

             (2)  An agreement may provide for the repayment, by instalments or otherwise, to the Commonwealth by the State of, and the payment of interest to the Commonwealth by the State on, the whole or a part of a payment by the Commonwealth to the State, in accordance with section 17, in respect of an amount, not being an amount referred to in subsection (1), expended by the State or an authority of the State.

             (3)  An agreement may provide that the liability of the State in respect of repayments and payment of interest to the Commonwealth may be reduced to an extent not exceeding the extent necessary to prevent the performance of the agreement resulting in a loss to the State by reason of circumstances referred to in the agreement, being circumstances beyond the control of the State.

21  Advances

                   An agreement may provide for:

                     (a)  the making by the Commonwealth to the State of advances on account of amounts that may become payable to the State under provision made in the agreement in accordance with section 17 and the deduction of amounts so advanced from amounts becoming so payable; and

                     (b)  the terms and conditions (including terms and conditions relating to repayment and payment of interest) that are to be applicable to such advances, being terms and conditions that are appropriate having regard to the provisions made in the agreement in accordance with section 20.


Notes to the Dairy Adjustment Act 1974

Note 1

The Dairy Adjustment Act 1974 as shown in this compilation comprises Act No. 166, 1974 amended as indicated in the Tables below.

Table of Acts

Act

Number
and year

Date
of Assent

Date of commencement

Application, saving or transitional provisions

Dairy Adjustment Act 1974

166, 1974

17 Dec 1974

17 Dec 1974

 

Dairy Adjustment Amendment Act 1976

77, 1976

10 June 1976

10 June 1976

Statute Stocktake (Regulatory and Other Laws) Act 2009

111, 2009

16 Nov 2009

Schedule 1 (item 11): 17 Nov 2009


Table of Amendments

ad. = added or inserted     am. = amended     rep. = repealed     rs. = repealed and substituted

Provision affected

How affected

Part II

 

S. 5......................................

am. No. 77, 1976

S. 11....................................

am. No. 77, 1976

Ss. 16A, 16B.......................

ad. No. 77, 1976

Part III

 

S. 17....................................

am. No. 77, 1976

S. 18....................................

rs. No. 77, 1976

Ss. 19–21............................

am. No. 77, 1976

S. 22....................................

am. No. 77, 1976

 

rep. No. 111, 2009