INTRODUCTORY Aim and overview of the Natural Disaster Relief and Recovery Arrangements Natural disasters often result in large-scale expenditure by state governments in the form of disaster relief and recovery payments and infrastructure restoration. To assist with this burden, the Commonwealth has made arrangements to provide financial assistance to the states in some circumstances. Usually the assistance is in the form of partial reimbursement of actual expenditure. The Commonwealth’s assistance is intended to be directed to state measures that complement other strategies in relation to natural disasters, such as insurance and disaster mitigation planning and implementation. The arrangements (called the ‘Natural Disaster Relief and Recovery Arrangements’) are set out in this Determination and are administered by the Department. Basic principles for assistance to states The Commonwealth may make payments to a state in partial reimbursement for state expenditure in relation to a natural disaster. The payments may be made if: the state expenditure is on eligible measures (as defined in this Determination); and the state expenditure meets certain financial requirements set out in this Determination; and the state meets other conditions set out in this Determination. Note: The rules about state expenditure and financial requirements are set out in Part 5. The conditions are set out in Part 4. Although payments are generally made after the state has submitted a claim for financial assistance, the Commonwealth may provide advance payments if the Minister is satisfied that exceptional circumstances exist. Dictionary of terms used in this Determination A number of terms used in the Determination are given special meanings. These terms are set out in the Dictionary at clause 7.1 and italicised throughout the Determination. WHAT TYPES OF ARE COVERED? Meaning of natural disaster In this Determination natural disaster means a serious disruption to a community or region caused by the impact of a naturally occurring rapid onset event that threatens or causes death, injury or damage to property or the environment and which requires significant and coordinated multi-agency and community response. Such serious disruption can be caused by any one, or a combination, of the following natural hazards: bushfire; earthquake; flood; storm; cyclone; storm surge; landslide; tsunami; meteorite strike; or tornado. The following are not natural disasters for the purposes of this Determination: drought; frost; heatwave; epidemic;
NATURAL DISASTER RELIEF ARRANGEMENTS Schedule 1 This Schedule is issued as necessary to establish the rates and ceilings for Natural Disaster Relief and Recovery Arrangements reimbursement for eligible measures taken on natural disaster relief and recovery. Subclause 3.3.2(a) and 3.7.1 — Loans to small businesses or primary producers Amounts to be established by the Subclause 3.3.2(b) and 3.7.2 — Loans or grants to individuals and voluntary non-profit bodies A maximum loan of $100,000 and grant of $5,000 to any one applicant with the first $30,000 (or part thereof) by way of combination of loan and grant in the ratio 5:1. Subclause 3.3.2(d) and 3.7.4 — Interest rate subsidy Maximum allowable loan amount that qualifies for the interest subsidy is to be established by the states. The maximum Commonwealth contribution is calculated using an interest rate based on 50 per cent of the ten-year Treasury bond rate averaged over April – May – June for the applicable financial year. The subsidy shall be the lesser of this amount or 50 per cent of the actual (commercial) interest amount. Subclause 3.3.2(e) and 3.7.5 – Grants to needy individuals and voluntary non-profit bodies A maximum grant of $10,000 for voluntary non-profit bodies and $5,000 for needy individuals (subject to means testing). Clause 3.4 – Category C Measure (Community recovery package) Community recovery fund –Amount to be determined at time of triggering assistance. Recovery grants for small businesses –A maximum grant of $10,000, up to $25,000 under exceptional circumstances. Recovery grants for primary producers – A maximum grant of $10,000, up to $25,000 under exceptional circumstances. Clause 5.5 — Small disaster criterion The small disaster criterion for the financial year 2012-13 is $240,000. Subclause 5.12.1 — Concessional interest rate loan Calculation of the applicable interest rate is based on 50 per cent of the ten-year Treasury bond rate averaged over April – May – June for the applicable financial year. The amount of financial assistance on eligible measures under the Natural Disaster Relief and Recovery Arrangements may be subject to ceilings determined by the Minister.