Document ID: chunk:federal_register_of_legislation:C2004A00861:clause:1_37j
Version: federal_register_of_legislation:C2004A00861
Segment Type: clause
Provision Reference: sch 1 cl 37J
Character Range: 11872–14227

37J  Discretionary payment rights—entity suffered a fall in lease income etc.

 (1) An entity satisfies this clause if:
 (a) the entity was granted a payment right under the DSAP scheme in respect of a lessor interest the entity held in a dairy farm enterprise; and
 (b) the entity is not taken, under the SDA scheme, to have been affected by a significant event, a significant crisis or significant anomalous circumstances; and
 (c) the entity passes the lease income test.

Cap

 (2) It is a policy objective that the total face value of discretionary payment rights, granted in respect of a dairy farm enterprise to entities who satisfy this clause in relation to that enterprise, must not exceed an amount specified in the SDA scheme.

Interpretation

 (3) For the purposes of this clause, an entity held a lessor interest in a dairy farm enterprise if:
 (a) under the DSAP scheme, the enterprise was taken to be subject to an eligible dairy leasing arrangement; and
 (b) under the DSAP scheme, the entity was taken to be a party to that arrangement as the lessor of land.

 (4) For the purposes of this clause, an entity passes the lease income test if:
 (a) both:
 (i) more than 50% of the total gross income derived by the entity in the 1999‑2000 financial year consisted of eligible lease income; and
 (ii) the eligible lease income derived by the entity in the 2000‑2001 financial year is at least 20% less than the eligible lease income derived by the entity in the 1999‑2000 financial year; or
 (b) both:
 (i) more than 50% of the total gross income derived by the entity in the 1999‑2000, 1998‑1999 and 1997‑1998 financial years consisted of eligible lease income; and
 (ii) the eligible lease income derived by the entity in the 2000‑2001 financial year is at least 20% less than the average of the eligible lease income derived by the entity in the 1999‑2000, 1998‑1999 and 1997‑1998 financial years.

 (5) For the purposes of this clause, the gross income derived by an entity is to be worked out in accordance with:
 (a) generally accepted accounting principles; or
 (b) if, under the SDA scheme, the generally accepted accounting principles are taken to be modified for the purposes of the scheme—those principles as so modified.

 (6) For the purposes of this clause, eligible lease income has the same meaning as in the SDA scheme.