{"id":"farm-debt-mediation-act-2018","name":"Farm Debt Mediation Act 2018","slug":"farm-debt-mediation-act-2018","collection":"act","jurisdiction":"sa","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":32054,"registerId":"sa-farm-debt-mediation-act-2018-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Farm Debt Mediation Act 2018","content":"South Australia\nFarm Debt Mediation Act 2018\nAn Act to provide for the mediation of disputes between farmers and creditors relating to debt incurred in the conduct of farming operations, and for other purposes.\n\nContents\nPart 1—Preliminary\n1\tShort title\n3\tObject of Act\n4\tInterpretation\n5\tApplication of Act\n6\tEnforcement action in contravention of Act void\n7\tRelationship with other Acts\nPart 2—Availability of mediation\nDivision 1—Availability of mediation\n8\tNotice of availability of mediation to be given\n9\tFarmer may request mediation\n10\tCreditor may agree to or refuse mediation\n11\tEnforcement action postponed to allow for mediation\nDivision 2—Prohibition certificate\n12\tApplication by farmer for issue of prohibition certificate\n13\tIssue of prohibition certificate\nDivision 3—Exemption certificate\n14\tApplication by creditor for issue of exemption certificate\n15\tIssue of exemption certificate\n16\tCreditor may satisfactorily participate in mediation without forgiving or reducing farm debt\n17\tDuration of exemption certificate\nDivision 4—General\n18\tWhen is a farmer or creditor presumed to have refused to participate in mediation?\nPart 3—The Commission and mediation\nDivision 1—The Commission and mediators\n19\tAdministration of Act\n20\tFunctions of Commission\n21\tFunctions of mediators\nDivision 2—The mediation process\n22\tCommission must arrange mediation\n23\tConduct of mediation\n24\tConfidentiality\n25\tMediation fees\nPart 4—General\n26\tAgreement reached by parties at mediation\n27\tContracting out prohibited\n28\tWaiver of rights void\n29\tNotices by mortgagee\n30\tService\n31\tOffences by bodies corporate\n32\tRegulations\nSchedule 1—Transitional provision\n1\tTransitional provision\nLegislative history\n\nThe Parliament of South Australia enacts as follows:\nPart 1—Preliminary\n1—Short title\nThis Act may be cited as the Farm Debt Mediation Act 2018.\n3—Object of Act\nThe object of this Act is to provide for the efficient and equitable resolution of farm debt disputes by requiring creditors to provide farmers with the opportunity to have the disputes referred to mediation before the creditors are able to take possession of property or other enforcement action under farm mortgages.\n4—Interpretation\n\t(1)\tIn this Act, unless the contrary intention appears—\ncommencement day means the day on which this Act comes into operation;\nCommission means the Small Business Commission established under section 3A of the Small Business Commission Act 2011;\ncreditor means a person to whom a farm debt is for the time being owed by a farmer;\ndefault, in relation to a farm mortgage, means a failure to perform an obligation that, under the terms of the mortgage, is a ground for enforcement action;\nExamples—\n\t1\tFailure to pay the principal, interest or other money the payment of which is secured by a farm mortgage.\n\t2\tFailure to keep the property subject to the farm mortgage insured.\n\t3\tFailure to submit financial statements required by the creditor.\ndirector of a body corporate includes—\n\t(a)\ta person occupying or acting in the position of director or member of the governing body of the body corporate, by whatever name called and whether or not validly appointed to occupy or duly authorised to act in the position; and\n\t(b)\tany person in accordance with whose directions or instructions the directors or members of the governing body of the body corporate are accustomed to act;\nenforcement action, in relation to a farm mortgage, means the taking of possession of property under the mortgage or any other action to enforce the mortgage, including the continuation of any action to that end already commenced, but does not include—\n\t(a)\tthe completion of the sale of property held under the mortgage in respect of which a contract has been executed before the commencement day; or\n\t(b)\tthe enforcement of a judgment that was obtained before the commencement day;\nexemption certificate means a certificate issued in respect of a farm mortgage under section 15;\nfarm means land on which a farmer engages in a farming operation;\nfarm debt means a debt incurred by a farmer for the purposes of the conduct of a farming operation that is secured wholly or partly by a farm mortgage;\nfarm machinery means any of the following goods or equipment acquired for the purposes of a farming operation:\n\t(a)\ta harvester, binder, tractor, plough or other agricultural implement;\n\t(b)\tany other goods or equipment of a class commonly used for the purposes of a farming operation;\nfarm mortgage includes an interest in, or power over, farm property securing obligations of the farmer (whether as a debtor or guarantor), including an interest in, or power arising from, a hire purchase agreement relating to farm machinery, but does not include—\n\t(a)\ta stock mortgage or a crop or wool lien; or\n\t(b)\tthe interest of the lessor of any farm machinery that is leased; or\n\t(c)\ta security interest (within the meaning of section 12 of the Personal Property Securities Act 2009 of the Commonwealth) in stock, crops or wool;\nfarm property means—\n\t(a)\ta farm or part of a farm; or\n\t(b)\tfarm machinery used by a farmer in connection with a farming operation; or\n\t(c)\tan irrigation right within the meaning of the Irrigation Act 2009 issued to a farmer for the purposes of a farming operation; or\n\t(d)\tan authority to take water under the Landscape South Australia Act 2019 issued to a farmer for the purposes of a farming operation; or\n\t(e)\tproperty of a prescribed kind;\nfarmer means a person or body solely or principally engaged in a farming operation, and includes—\n\t(a)\ta person who owns land cultivated under a share-farming agreement; and\n\t(b)\tthe personal representative of a deceased farmer;\nfarming operation means any of the following activities undertaken for commercial gain:\n\t(a)\tagricultural, pastoral, horticultural, viticultural, forestry or apicultural activities;\n\t(b)\tpoultry farming, dairy farming or any business that consists of the cultivation of soils, the gathering of crops or the rearing of livestock;\n\t(c)\taquaculture or the propagation or harvesting of fish or other aquatic organisms for the purposes of aquaculture;\n\t(d)\tan activity prescribed by regulation;\nfunction includes a power, authority or duty;\nmediator means a person engaged by the Commission under this Act to mediate farm debt disputes between creditors and farmers;\nprohibition certificate means a certificate in respect of a farm mortgage issued under section 13;\nsatisfactory mediation means any of the following:\n\t(a)\ta mediation that has achieved a resolution of a farm debt dispute;\n\t(b)\ta mediation that has proceeded as far as it reasonably can in an attempt to achieve resolution of a farm debt dispute but has failed to resolve the dispute;\n\t(c)\ta mediation of a prescribed class;\nstatutory enforcement notice means—\n\t(a)\ta notice under section 55A of the Law of Property Act 1936; or\n\t(b)\tany notice designated by the Minister as a statutory enforcement notice.\n\t(2)\tThe Minister may by notice in the Gazette designate a notice under an Act to be a statutory enforcement notice.\n\t(3)\tThe Minister may by further notice in the Gazette vary or revoke a notice under subsection (2).\n5—Application of Act\n\t(1)\tThis Act applies to creditors only in respect of farm debts.\n\t(2)\tThis Act does not apply to—\n\t(a)\ta farmer whose property is subject to control under Part X Division 2 of the Bankruptcy Act 1966 of the Commonwealth; or\n\t(b)\ta farmer whose property is the subject of a bankruptcy petition presented by any person; or\n\t(c)\ta farmer that is an externally-administered body corporate within the meaning of the Corporations Act 2001 of the Commonwealth.\n6—Enforcement action in contravention of Act void\nEnforcement action taken by a creditor to whom this Act applies otherwise than in compliance with this Act is void.\n7—Relationship with other Acts\n\t(1)\tNothing in this Act affects the operation of the following Acts:\n\t(a)\tthe Limitation of Actions Act 1936;\n\t(b)\tthe National Consumer Credit Protection Act 2009 of the Commonwealth;\n\t(c)\tthe Personal Property Securities Act 2009 of the Commonwealth.\n\t(2)\tNothing in this Act affects the operation of the Banking Act 1959 of the Commonwealth and, in particular, the duty of the Australian Prudential Regulation Authority under Part II Division 2 of that Act.\nPart 2—Availability of mediation\nDivision 1—Availability of mediation\n8—Notice of availability of mediation to be given\n\t(1)\tA creditor must not take enforcement action against a farmer under a farm mortgage unless—\n\t(a)\tthe creditor has given notice to the farmer in accordance with this section; and\n\t(b)\t21 days have expired since the day on which notice was given.\n\t(2)\tNotice under subsection (1)—\n\t(a)\tmust state that the creditor intends to take enforcement action under the farm mortgage; and\n\t(b)\tmust state that, under this Act, mediation between the farmer and the creditor is available; and\n\t(c)\tmust state that the farmer has 21 days from the day on which the notice was given to request mediation with the creditor in respect of the farm debt; and\n\t(d)\tmust be given in a manner and form approved by the Commission.\n\t(3)\tThis section does not apply to a creditor if an exemption certificate is in force in respect of the farm mortgage.\n9—Farmer may request mediation\n\t(1)\tA farmer who is liable for debt (whether or not the farmer is in default) may request mediation under this Act.\n\t(2)\tA farmer who is given notice under section 8 may, within 21 days from the day on which notice was given, notify the creditor, in a manner and form approved by the Commission, that the farmer requests mediation concerning the farm debt involved.\n\t(3)\tA farmer to whom notice has not been given under section 8 and who is liable for a farm debt may notify a creditor that the farmer requests mediation concerning the farm debt.\n\t(4)\tNotice of a request for mediation by a farmer under subsection (2) or (3) must be given in a manner and form approved by the Commission.\n10—Creditor may agree to or refuse mediation\n\t(1)\tA creditor who receives a request for mediation from a farmer under section 9 may, by notice given to the farmer, agree or refuse to participate in mediation in respect of the farm debt involved.\n\t(2)\tNotice of a response by a creditor under subsection (1) to a request for mediation must be given in a manner and form approved by the Commission.\n\t(3)\tIf a creditor refuses to participate in mediation with a farmer who has made a request under section 9—\n\t(a)\twhere the farmer is not in default, the refusal by the creditor does not, of itself, give rise to any claim or other consequence under this Act;\n\t(b)\twhere the farmer is in default, the refusal by the creditor provides the farmer with grounds to apply to the Commission under section 12 for the issue of a prohibition certificate.\n\t(4)\tIf a creditor agrees to participate in mediation with a farmer who has made a request under section 9, the creditor must, within 10 days after giving notice to the farmer under subsection (1), notify the Commission, in a manner and form approved by the Commission, that the parties have agreed to participate in mediation.\n11—Enforcement action postponed to allow for mediation\nIf a farmer has made a request for mediation under section 9, the creditor must not take enforcement action in respect of the farm mortgage concerned unless an exemption certificate is in force.\nNote—\nEnforcement action taken in breach of this section is void under section 6.\nDivision 2—Prohibition certificate\n12—Application by farmer for issue of prohibition certificate\n\t(1)\tA farmer is, on application to the Commission, entitled to be issued with a prohibition certificate if—\n\t(a)\tthe farmer is in default under a farm mortgage; and\n\t(b)\tan exemption certificate is not in force in respect of the farm mortgage; and\n\t(c)\tthe farmer has notified a creditor in accordance with section 9(2) or (3) that the farmer requests mediation concerning the farm debt; and\n\t(d)\tfollowing the farmer's request for mediation under section 9(2) or (3)—\n\t(i)\tsatisfactory mediation has not taken place because—\n\t(A)\tthe creditor has refused to participate in mediation (or has failed to respond to the farmer's request for mediation); or\n\t(B)\tmediation has commenced but the creditor does not wish to continue to participate in mediation; or\n\t(ii)\tat least 3 months have elapsed since a request was made by the farmer under section 9(2) or (3) and throughout that period the farmer has attempted to participate in mediation in good faith but no satisfactory mediation has taken place between the farmer and the creditor.\n\t(2)\tAn application under subsection (1) must—\n\t(a)\tbe made in a manner and form approved by the Commission; and\n\t(b)\tspecify the circumstances under which the farmer made the request to participate in mediation; and\n\t(c)\tif relevant, specify the circumstances of the creditor's refusal to participate in mediation.\n13—Issue of prohibition certificate\n\t(1)\tThe Commission must issue a prohibition certificate to a farmer who is entitled to a certificate under section 12.\n\t(2)\tIf mediation has taken place under this Act, the Commission must have regard to the report of the mediator who conducted the mediation to determine whether satisfactory mediation has occurred.\n\t(3)\tA creditor must not commence enforcement action against a farmer if a prohibition certificate is in force in respect of the farm mortgage held by that creditor.\n\t(4)\tA prohibition certificate expires—\n\t(a)\t6 months after the day on which the prohibition certificate was issued; or\n\t(b)\ton the day on which the farmer and creditor enter into mediation in respect of the farm debt,\nwhichever is the earlier.\nDivision 3—Exemption certificate\n14—Application by creditor for issue of exemption certificate\n\t(1)\tA creditor is, on application to the Commission, entitled to be issued with an exemption certificate if—\n\t(a)\ta farmer is in default under a farm mortgage; and\n\t(b)\ta prohibition certificate is not in force in respect of the farm mortgage; and\n\t(c)\t—\n\t(i)\tin the case of a creditor who gave notice under section 8 in relation to the farm debt in respect of the farm mortgage—\n\t(A)\tsatisfactory mediation under this Act has taken place; or\n\t(B)\tsatisfactory mediation has not taken place because the farmer has refused to participate in mediation; or\n\t(C)\tat least 3 months (or such longer period agreed to in writing by the creditor and farmer) has elapsed since notice was given and throughout that period the creditor made attempts to participate in mediation in good faith but satisfactory mediation has not taken place; or\n\t(ii)\tin any other case—satisfactory mediation has taken place under an alternative dispute resolution process (other than the dispute resolution process provided for by this Act).\n\t(2)\tAn application under subsection (1) must—\n\t(a)\tbe made in a manner and form approved by the Commission; and\n\t(b)\tspecify the circumstances of the farmer's default; and\n\t(c)\tif relevant, specify the circumstances of the farmer's refusal to participate in mediation; and\n\t(d)\tif relevant, set out details of any alternative dispute resolution process (other than the dispute resolution process provided for by this Act) that has occurred between the farmer and the creditor in relation to the farm debt.\n15—Issue of exemption certificate\n\t(1)\tThe Commission must issue an exemption certificate to a creditor who is entitled to a certificate under section 14.\n\t(2)\tIf mediation has taken place under this Act, the Commission must have regard to the report of the mediator who conducted the mediation to determine whether satisfactory mediation has occurred.\n\t(3)\tIf an exemption certificate has been issued in respect of a farm mortgage, this Act (other than this Division) does not apply to the creditor who holds the farm mortgage while the certificate is in force.\n\t(4)\tThe expiry of an exemption certificate does not affect any proceedings for recovery of a farm debt, or for the exercise or enforcement of any right of the creditor, already taken or commenced by a creditor while the exemption certificate was in force, and any proceedings may be continued and concluded as if the certificate were still in force.\n\t(5)\tThe reference in subsection (4) to the commencement of proceedings does not include a reference to the giving of any statutory enforcement notice or other action taken in order to fulfil a condition precedent to the enforcement of a right otherwise than through proceedings in a court or tribunal.\n16—Creditor may satisfactorily participate in mediation without forgiving or reducing farm debt\nA failure by a creditor to agree to reduce or forgive any debt does not, of itself, demonstrate a lack of good faith on the part of a creditor in participating in, or attempting to participate in, mediation.\n17—Duration of exemption certificate\nAn exemption certificate remains in force—\n\t(a)\tif satisfactory mediation in respect of the farm debt concerned has taken place—for the period commencing on the day of issue of the exemption certificate and ending on the third anniversary of the last day of the mediation; or\n\t(b)\tif the farmer has failed to take part in mediation in good faith—for the period commencing on the date of issue of the exemption certificate and ending on the third anniversary of the last date of the mediation; or\n\t(c)\tif the farmer has indicated in writing that the farmer does not wish to enter into or proceed with mediation—for the period commencing on the day of issue of the exemption certificate and ending on the third anniversary of the day on which the indication was given to the Commission or creditor; or\n\t(d)\tif the farmer has failed to respond in writing, within 28 days, to an invitation referred to in section 18(a)(iii)—for the period commencing on the day of issue of the exemption certificate and ending on the third anniversary of the day that is 28 days after the invitation was given to the farmer; or\n\t(e)\tif a notice was given by the creditor under section 8—for the period commencing on the day of issue of the exemption certificate and ending on the day that is 3 years and 3 months after the date the notice was given; or\n\t(f)\tin any other case—for the period of 3 years commencing on the day on which the certificate was issued.\nDivision 4—General\n18—When is a farmer or creditor presumed to have refused to participate in mediation?\nFor the purposes of this Act—\n\t(a)\ta farmer is presumed to have refused to participate in mediation in the following circumstances:\n\t(i)\tthe farmer has failed to take part in mediation in good faith or has not entered into or proceeded with mediation within 3 months of a notice of availability under section 8 being given or a request for mediation under section 9 being made (as the case may require);\n\t(ii)\tthe farmer has notified the Commission or creditor that the farmer does not wish to enter into or proceed with mediation in respect of the farm debt;\n\t(iii)\tthe farmer has failed to respond within 28 days to an invitation that—\n\t(A)\tis made by the creditor in a manner and form approved by the Commission; and\n\t(B)\tinvites the farmer to attend a mediation session; and\n\t(C)\tindicates that a failure of the farmer to respond to the invitation might be taken to be an indication that the farmer refuses to take part in mediation in respect of the farm debt;\n\t(b)\ta creditor is presumed to have refused to participate in mediation in the following circumstances:\n\t(i)\tthe creditor has failed to take part in mediation in good faith or has not entered into or proceeded with mediation within 3 months of a notice of availability under section 8 being given or a request for mediation under section 9 being made (as the case requires);\n\t(ii)\tthe creditor has notified, in a manner and form approved by the Commission, the Commission or the farmer that the creditor does not wish to enter into or proceed with mediation in respect of the farm debt.\nPart 3—The Commission and mediation\nDivision 1—The Commission and mediators\n19—Administration of Act\nThe Commission is responsible for the administration of this Act.\n20—Functions of Commission\n\t(1)\tThe Commission has the following functions under this Act:\n\t(a)\tto make arrangements to facilitate the resolution by mediation of farm debt disputes between farmers and creditors;\n\t(b)\tto provide preliminary assistance to farmers and creditors who have agreed to participate in mediation in relation to farm debts by—\n\t(i)\tgiving both parties advice about their rights and obligations in relation to the mediation process; and\n\t(ii)\tencouraging full and open communication between the parties in relation to the dispute;\n\t(c)\tto issue prohibition certificates under Part 2 Division 2;\n\t(d)\tto issue exemption certificates under Part 2 Division 3;\n\t(e)\tto report to the Minister responsible for the administration of the Livestock Act 1997 on the performance of functions by the Commission under this Act (without limiting the Commission's functions under section 5 of the Small Business Commission Act 2011);\n\t(f)\tto perform any function conferred or imposed on the Commission under this Act.\n\t(2)\tThe Commission is not subject to the Minister's control or direction in exercising functions under section 20(1)(a), (b), (c) or (d).\n\t(3)\tFor the purposes of arranging for the resolution of farm debt disputes by mediation, the Commission—\n\t(a)\tmay engage persons to conduct mediations; and\n\t(b)\tmust, when engaging persons under paragraph (a), ensure that those persons have the necessary skills and experience to conduct a mediation in a particular case.\n21—Functions of mediators\n\t(1)\tA mediator engaged by the Commission under section 20 has the following functions:\n\t(a)\tto mediate farm debt disputes between creditors and farmers by assisting the parties to reach agreement about—\n\t(i)\tpresent arrangements between them; and\n\t(ii)\tif the financial relationship between the parties is to be ongoing—the future conduct of the parties;\n\t(b)\tto perform any other function conferred on the mediator by or under this Act.\n\t(2)\tIn carrying out a function under this Act, a mediator must not—\n\t(a)\tadvise a farmer or creditor about the law; or\n\t(b)\tencourage or assist a farmer or creditor in reserving or establishing legal rights; or\n\t(c)\tact as an adjudicator or arbitrator.\nDivision 2—The mediation process\n22—Commission must arrange mediation\nIf the Commission is notified under section 10(4) that the parties to a farm debt dispute have agreed to take part in mediation, the Commission must arrange for mediation of the dispute by a mediator.\n23—Conduct of mediation\n\t(1)\tA mediation must be conducted with—\n\t(a)\tas little formality and technicality as proper mediation of the farm debt permits; and\n\t(b)\tas much expedition as possible.\n\t(2)\tThe Commission, having regard to any recommendations made by a mediator, may join any person that the Commission considers appropriate to join as a party to the mediation.\n\t(3)\tA mediator may call a pre-mediation conference.\n\t(4)\tThe mediator may—\n\t(a)\tconduct a pre-mediation conference with such procedures as the mediator thinks fit; and\n\t(b)\twithout limiting paragraph (a), allow the parties to participate in a pre-mediation conference by means of telephone, video link or any other system or method of communication.\n\t(5)\tA party to a mediation may be represented by—\n\t(a)\ta legal practitioner (within the meaning of the Legal Practitioners Act 1981); or\n\t(b)\tany other person considered appropriate by the Commission having regard to any recommendations made by a mediator.\n\t(6)\tDespite subsection (5), the mediator may meet with a party to the mediation (alone or together with another party) in the absence of their representative if—\n\t(a)\tthe mediator considers it appropriate to do so; and\n\t(b)\tthe relevant party agrees to meet the mediator in the absence of their representative.\n\t(7)\tA mediator must, as soon as reasonably practicable after mediation conducted by the mediator has concluded, submit to the Commission a report on the mediation.\n24—Confidentiality\n\t(1)\tA person must not disclose any information obtained in the course of mediation under this Act, or in the administration of this Act, except—\n\t(a)\tas required or authorised by or under this Act or any other Act or law; or\n\t(b)\twith the written consent of the person from whom the information was obtained or to whom the information relates; or\n\t(c)\tin connection with the administration of this Act; or\n\t(d)\tas is reasonably required to refer any party or parties to mediation to any person, agency, organisation or other body and, with the written consent of the parties to the mediation, to aid in the resolution of an issue between those parties; or\n\t(e)\tto an authority responsible under the law of a place outside this State, where the information is required for the proper administration of that law; or\n\t(f)\tto an agency or instrumentality of this State, the Commonwealth or another State or a Territory of the Commonwealth for the purposes of the proper performance of its functions; or\n\t(g)\tin accordance with the regulations.\nMaximum penalty: $10 000.\n\t(2)\tSubsection (1) does not prevent disclosure of statistical or other data that could not reasonably be expected to lead to the identification of any person to whom it relates.\n\t(3)\tInformation that has been disclosed under subsection (1) for a particular purpose must not be used for any other purpose by—\n\t(a)\tthe person to whom the information was disclosed; or\n\t(b)\tany other person who gains access to the information (whether properly or improperly and whether directly or indirectly) as a result of that disclosure.\nMaximum penalty: $10 000.\n\t(4)\tEvidence of anything said or admitted during mediation or a document prepared for the purposes of, in the course of or in accordance with, mediation is not admissible in any proceedings in a court or before a person or body authorised to hear and receive evidence.\n\t(5)\tSubsection (4) does not apply to—\n\t(a)\tany contract, deed, mortgage or other instrument executed as a result of, or in accordance with, any binding agreement entered into during mediation; or\n\t(b)\tany report on the mediation by the mediator who conducted it.\n\t(6)\tIn this section—\nmediation includes any steps taken in the course of making arrangements for mediation. \n25—Mediation fees\n\t(1)\tA fee of an amount determined by the Commission is payable by each of the parties participating in mediation of a farm debt dispute under this Act.\n\t(2)\tThe Commission may, for the purposes of this section, by notice in the Gazette or publication on a website selected by the Commission, determine the fee payable for mediation under this Act.\n\t(3)\tA fee for mediation payable by a party to mediation is recoverable by the Commission as a debt in a court of competent jurisdiction.\n\t(4)\tThe Commission may wholly or partly waive or reduce a fee payable under this section.\nPart 4—General\n26—Agreement reached by parties at mediation\nA creditor must ensure that any binding agreement relating to the farm debt made between the creditor and the farmer that is entered into during or at the conclusion of mediation is reflected in any contract, deed, mortgage or other instrument executed as a result of that binding agreement.\n27—Contracting out prohibited\n\t(1)\tA provision of an agreement or other instrument (whether or not in writing, and whether entered into before, on or after the commencement of this Act) by which a person seeks to avoid, modify or restrict the operation of this Act is void.\n\t(2)\tA provision of an agreement or other instrument (whether or not in writing, and whether entered into before, on or after the commencement of this Act) by which a person seeks to have a farmer (as debtor or guarantor) or a guarantor indemnify a creditor for any loss or liability arising under this Act is void.\n28—Waiver of rights void\nA waiver of mediation rights under this Act is void.\n29—Notices by mortgagee\nIf land is subject to a farm mortgage and another Act requires the mortgagee to give notice to the mortgagor before exercising in relation to the land a power or right conferred by the other Act or by the farm mortgage nothing in this Act derogates from the requirement to give the notice under the other Act.\n30—Service\n\t(1)\tA notice or other document required or authorised to be given or sent to, or served on, a person under this Act may—\n\t(a)\tbe given to the person personally; or\n\t(b)\tbe posted in an envelope addressed to the person at the person's last known residential or (in the case of a corporation) registered address; or\n\t(c)\tbe left for the person at the person's last known residential or (in the case of a corporation) registered address with someone apparently over the age of 16 years; or\n\t(d)\tbe transmitted by email to an email address.\n\t(2)\tWithout limiting the effect of subsection (1), a notice or other document required to be given or sent to, or served on, a person for the purposes of this Act may, if the person is a company or registered body within the meaning of the Corporations Act 2001 of the Commonwealth, be served on the person in accordance with that Act.\n31—Offences by bodies corporate\n\t(1)\tIf a body corporate is guilty of an offence against this Act (other than an offence against the regulations), each director of the body corporate is guilty of an offence and liable to the same penalty as is prescribed for the principal offence if the prosecution proves that—\n\t(a)\tthe director knew, or ought reasonably to have known, that there was a significant risk that such an offence would be committed; and\n\t(b)\tthe director was in a position to influence the conduct of the body corporate in relation to the commission of such an offence; and\n\t(c)\tthe director failed to exercise due diligence to prevent the commission of the offence.\n\t(2)\tThe regulations may make provision in relation to the criminal liability of a director of a body corporate that is guilty of an offence against the regulations.\n32—Regulations\n\t(1)\tThe Governor may make such regulations as are contemplated by this Act, or as are necessary or expedient for the purposes of this Act.\n\t(2)\tWithout limiting the generality of subsection (1), the regulations may—\n\t(a)\tbe of general or limited application and vary in operation according to factors stated in the regulation; and\n\t(b)\tprescribe fines, not exceeding $5 000, for offences against the regulations; and\n\t(c)\tprescribe fees or charges in respect of matters under this Act, and provide for the waiver or refund of such fees or charges; and\n\t(d)\tmake provisions of a saving or transitional nature.\n\t(3)\tThe regulations may—\n\t(a)\tbe of general application or vary in their application according to prescribed factors; and\n\t(b)\tprovide that a matter or thing in respect of which regulations may be made is to be determined according to the discretion of the Commission or a specified person or body.\nSchedule 1—Transitional provision\n1—Transitional provision\nThis Act applies to a farm debt (whether or not incurred before or after the commencement of section 8) in respect of which no enforcement action was taken before the commencement of that section.\nLegislative history\nNotes\n\t•\tPlease note—References in the legislation to other legislation or instruments or to titles of bodies or offices are not automatically updated as part of the program for the revision and publication of legislation and therefore may be obsolete.\n\t•\tEarlier versions of this Act (historical versions) are listed at the end of the legislative history.\n\t•\tFor further information relating to the Act and subordinate legislation made under the Act see the Index of South Australian Statutes or www.legislation.sa.gov.au.\nPrincipal Act and amendments\nNew entries appear in bold.\nYear\nNo\nTitle\nAssent\nCommencement\n2018\n7\nFarm Debt Mediation Act 2018 \n2.8.2018\n3.9.2018 (Gazette 30.8.2018 p3253)\n2019\n33\nLandscape South Australia Act 2019\n21.11.2019\nSch 5 (cl 18)—1.7.2020 (Gazette 25.6.2020 p3502)\n2024\n65\nStatutes Amendment (Small Business Commission and Retail and Commercial Leases) Act 2024\n5.12.2024\nPt 5 (ss 78 to 96)—1.7.2025 (Gazette 19.6.2025 p1865)\nProvisions amended\nNew entries appear in bold.\nEntries that relate to provisions that have been deleted appear in italics.\nProvision\nHow varied\nCommencement\nPt 1\n\n\ns 2\nomitted under Legislation Revision and Publication Act 2002\n1.7.2020\ns 4\n\n\ns 4(1)\n\n\nCommissioner\ndeleted by 65/2024 s 78(1)\n1.7.2025\nCommission\ninserted by 65/2024 s 78(1)\n1.7.2025\nfarm property\namended by 33/2019 Sch 5 cl 18\n1.7.2020\nmediator\namended by 65/2024 s 78(2)\n1.7.2025\nSmall Business Commissioner\ndeleted by 65/2024 s 78(3)\n1.7.2025\nPt 2\n\n\ns 8\n\n\ns 8(2)\namended by 65/2024 s 79\n1.7.2025\ns 9\n\n\ns 9(2) and (4)\namended by 65/2024 s 80\n1.7.2025\ns 10\n\n\ns 10(2)—(4)\namended by 65/2024 s 81\n1.7.2025\ns 12\n\n\ns 12(1) and (2)\namended by 65/2024 s 82\n1.7.2025\ns 13\n\n\ns 13(1) and (2)\namended by 65/2024 s 83\n1.7.2025\ns 14\n\n\ns 14(1) and (2)\namended by 65/2024 s 84\n1.7.2025\ns 15\n\n\ns 15(1) and (2)\namended by 65/2024 s 85\n1.7.2025\ns 17\namended by 65/2024 s 86\n1.7.2025\ns 18\namended by 65/2024 s 87\n1.7.2025\nPt 3\n\n\nheading\namended by 65/2024 s 88\n1.7.2025\nPt 3 Div 1\n\n\nheading\namended by 65/2024 s 89\n1.7.2025\ns 19\namended by 65/2024 s 90\n1.7.2025\ns 20\n\n\nheading\namended by 65/2024 s 91(1)\n1.7.2025\ns 20(1)\namended by 65/2024 s 91(2)—(6)\n1.7.2025\ns 20(2)\namended by 65/2024 s 91(7)\n1.7.2025\ns 20(3)\namended by 65/2024 s 91(8)\n1.7.2025\nPt 3 Div 2\n\n\ns 21\n\n\ns 21(1)\namended by 65/2024 s 92\n1.7.2025\ns 22\nheading amended by 65/2024 s 93(1)\n1.7.2025\n\namended by 65/2024 s 93(2)\n1.7.2025\ns 23\n\n\ns 23(2)\namended by 65/2024 s 94\n1.7.2025\ns 23(5)\namended by 65/2024 s 94\n1.7.2025\ns 23(7)\namended by 65/2024 s 94\n1.7.2025\ns 25\n\n\ns 25(1)—(4)\namended by 65/2024 s 95\n1.7.2025\nPt 4\n\n\ns 32\n\n\ns 32(3)\namended by 65/2024 s 96\n1.7.2025\nHistorical versions\n1.7.2020\n\n","sortOrder":0}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":5,"scope_assessment":{"changed":false,"description":"The legislation remains focused on its original purpose: providing a mediation framework for farm debt disputes. The 2024 amendments replaced the 'Small Business Commissioner' with the 'Small Business Commission' and updated various procedural sections, but this appears to be administrative restructuring rather than scope expansion. The core mechanism—mandatory pre-enforcement mediation for farm debts—remains unchanged from the 2018 original intent."},"complexity_factors":["Multiple certificate types (prohibition vs exemption) with different triggers, durations, and legal effects","Nested conditional logic in sections 12 and 14 determining eligibility for certificates (e.g., 'if (a) and (b) and (c) and (d)(i)(A) or (B) or (ii)')","17 defined terms in section 4, some with their own sub-definitions and exclusions (e.g., 'farm mortgage' excludes stock mortgages, crop liens, and certain leases)","Cross-references to Commonwealth legislation (Bankruptcy Act, Corporations Act, Personal Property Securities Act, National Consumer Credit Protection Act)","Complex duration calculations for exemption certificates in section 17 with six different scenarios (a through f) each triggering different 3-year or 3-year-3-month periods","Presumptions of refusal in section 18 that operate as deemed conduct for legal purposes","Interaction between state and federal law (particularly regarding security interests and banking regulation)"],"plain_english_summary":"**What this law does:**\n\nThis Act creates a mandatory \"pause button\" for farmers facing debt trouble. Before a bank or creditor can repossess farm property or take other enforcement action, they must offer the farmer a chance to mediate (a structured negotiation process with a neutral third party helping both sides talk).\n\n**Who it affects:**\n\n- **Farmers**: People or businesses mainly engaged in farming (crops, livestock, aquaculture, etc.) who owe money secured by farm property.\n- **Creditors**: Banks and lenders who hold mortgages over farms or farm machinery.\n- **The Small Business Commission**: The government body that runs the system, appoints mediators, and issues certificates.\n\n**How it works:**\n\n1. **Notice requirement**: A creditor must give the farmer 21 days' notice before taking enforcement action, informing them that mediation is available.\n2. **Mediation request**: The farmer can request mediation within those 21 days (or even before default).\n3. **Pause on enforcement**: Once mediation is requested, the creditor cannot repossess property or enforce the debt until mediation finishes or an exemption is granted.\n4. **Certificates**: \n   - **Prohibition certificate**: Issued to farmers when creditors refuse to mediate or drag their feet—this legally blocks the creditor from taking action for up to 6 months.\n   - **Exemption certificate**: Issued to creditors when mediation is complete or the farmer refuses to participate—this allows the creditor to proceed with enforcement.\n5. **Confidentiality**: What happens in mediation stays in mediation (with specific exceptions).\n\n**Why it matters:**\n\nFarming is vulnerable to drought, market crashes, and weather disasters. This law prevents creditors from immediately foreclosing on family farms, giving farmers breathing room to renegotiate debts, restructure finances, or find alternative solutions without losing their land immediately. It levels the playing field by forcing creditors to negotiate before enforcing.\n\n**Key protections:**\n- Any attempt to contract out of these rights is void (invalid).\n- Creditors cannot bypass the process—enforcement action taken without following this Act is legally void (completely invalid).\n- Farmers don't have to agree to debt reduction to prove they're negotiating in good faith."},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"The Act’s core purpose — to require an opportunity for mediation before enforcement of farm mortgages — remains the operative scope. Subsequent amendments reflected in the history (notably the 2019 change widening the definition of farm property to include certain water rights, and administrative updates in 2024 replacing office-holder names and refining Commission powers, forms and fees) are primarily machinery and definitional updates rather than an expansion beyond the original mediation-before-enforcement model. Those amendments broadened what counts as farm property in some cases and shifted administrative responsibility and procedural detail to the Commission, but did not change the Act’s central function or add new substantive remedies."},"complexity_factors":["Relatively short Act with 32 sections plus a schedule","Clear interpretation section with roughly 20 defined terms (e.g. farm debt, farm mortgage, farmer, Commission) (s 4)","Two parallel certificate pathways with conditional triggers and multiple time limits (prohibition certificate ss 12–13; exemption certificate ss 14–17)","Several prescribed timeframes to track (21 days for farmer response s 8; 10 days for creditor to notify Commission s 10(4); 3 months as a trigger for certificates ss 12(1)(d)(ii), 14(1)(c))","Important cross-references and exclusions to Commonwealth laws (PPSA, Bankruptcy Act, Corporations Act, Banking Act) (s 5, s 7, s 4 definitions)","Delegation of detail to the Commission and to regulations (forms, fees, fees waiver, designation of statutory enforcement notices, discretion in regulations) (ss 20, 25, 32)","Confidentiality regime with criminal penalties and admissibility exceptions (s 24)","Transitional provision applying to unresolved enforcement actions (Schedule 1)"],"plain_english_summary":"**What this law does (mechanics first)\n\n- Requires creditors who hold a mortgage over farm land or farm machinery (a “farm mortgage”) to give a prescribed written notice before they take enforcement steps (for example, to take possession of farm property). The notice must explain that mediation is available and give the farmer 21 days to request mediation (see s 8).  \n- If a farmer requests mediation, the creditor must not take enforcement action while the mediation process applies (see ss 9, 11).  \n- If mediation is agreed, the Small Business Commission (the Commission) arranges a mediator and the mediation is run with limited formality and promptness (see ss 19–23). Mediators cannot give legal advice or act as arbitrators (s 21).  \n- If mediation does not happen or is not satisfactory, either party can apply to the Commission for a certificate that changes the creditor’s ability to enforce:  \n  - A prohibition certificate (issued to a farmer) prevents the creditor from enforcing the mortgage while the certificate is in force (ss 12–13).  \n  - An exemption certificate (issued to a creditor) allows the creditor to be exempt from the Act while the certificate is in force and continue enforcement or proceedings begun while it was in force (ss 14–17).  \n- Mediation is confidential; what is said in mediation is generally not admissible in court (s 24).  \n- Parties pay a mediation fee set by the Commission, although the Commission may waive or reduce it (s 25).  \n- Enforcement steps that breach the Act are void (s 6), and attempts to contract out of the Act or to waive the mediation rights are void (ss 27–28).  \n\nWhat the law says it is for\n\n- The Act’s stated object is to provide “efficient and equitable” resolution of farm debt disputes by requiring creditors to offer farmers an opportunity for mediation before enforcement of farm mortgages (s 3).\n\nWho it affects\n\n- Farmers: persons or bodies principally engaged in farming operations whose farm debts are secured by a farm mortgage (s 4 definitions; s 5 limits).  \n- Creditors: any person owed a farm debt secured by a farm mortgage (s 4).  \n- The Commission: the body that runs the system, engages mediators, issues certificates and sets forms and fees (ss 19–20).  \n- Excluded groups: farmers under bankruptcy control or bankruptcy petition, and externally-administered corporations (s 5(2)). Certain security interests and types of mortgages (stock mortgages, crop/wool liens, leasing interests, some PPSA interests) are excluded from the definition of farm mortgage (s 4).  \n\nWhy it matters (trade-offs, costs, who pays, who decides)\n\n- Who pays the direct costs: each party to mediation pays the fee set by the Commission (s 25). The Commission can waive or reduce fees (s 25(4)).  \n- Who bears delay and enforcement risk: creditors face a statutory requirement to pause enforcement while mediation is in play (s 11), and enforcement taken in breach is void (s 6). That delays creditor remedies and can impose time and carrying costs on creditors and on lending institutions.  \n- Incentives created: creditors are incentivised to engage in mediation (or to secure an exemption certificate) because refusing to participate can give farmers grounds for a prohibition certificate that bars enforcement for a period (ss 10, 12–13). Farmers are incentivised to request mediation to obtain procedural protection from enforcement (ss 8–9, 12–13).  \n- What creditors can do to avoid delay: they can participate in mediation and, if mediation is satisfactory (or if the farmer refused), apply for an exemption certificate that removes the Act’s constraints for a defined period (ss 14–17). Exemption certificates can allow enforcement to proceed and allow steps commenced while the certificate was in force to continue after expiry (s 15(4)).  \n- Administrative discretion and implementation risk: the Commission controls forms, the appointment and qualifications of mediators, fees, and issues certificates (ss 20, 22, 25). The Minister may designate certain notices as statutory enforcement notices (s 4(2)). Regulations may add detail and grant further discretion (s 32). Those delegations create points where implementation choices (forms, fee levels, timeframes and limits) materially affect how the law operates in practice.  \n- Compliance burden and procedural detail: creditors must follow prescribed notice forms and timeframes (s 8), and both parties must use Commission-approved forms to request or respond to mediation (ss 9–10). Records and communication practices will therefore be needed.  \n- Effects on credit markets and behaviour: by inserting a mandatory mediation step before enforcement, the law changes the timing and cost of enforcing farm-backed credit. Lenders may respond by adjusting lending terms, price of credit, taking different security not covered by the Act, or by seeking exemption certificates where available (ss 4, 14–17).  \n\nKey practical points and limits\n\n- Confidentiality protects mediation discussions from being used in court, but written agreements reached in mediation are enforceable (s 24(4)–(5)).  \n- The Act does not displace other federal laws such as the Personal Property Securities Act, certain consumer credit laws, or the Banking Act duties (s 7).  \n- The Commission’s reports and mediator reports are relevant to the Commission’s decisions on certificates (ss 13(2), 15(2), 20(1)(e)).  \n\nSelective section references for quick lookup: enforcement void (s 6); notice and 21‑day window (s 8); farmer request (s 9); creditor response and notification (s 10); postponement of enforcement (s 11); prohibition certificate (ss 12–13); exemption certificate (ss 14–17); Commission functions (ss 19–20); confidentiality (s 24); mediation fees (s 25); contracting out and waiver void (ss 27–28)."},"issue_detection":{"absurdities":[],"contradictions":[]},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"summary":{"complexity_score":5,"scope_assessment":{"changed":false,"description":"Based on general knowledge of this Act, it appears to have remained consistent with its original intent: protecting farm operators from precipitous enforcement action by requiring mandatory mediation first. No significant scope changes are known, but this cannot be fully verified without access to the current legislative text."},"complexity_factors":["Interaction between state mediation requirements and federal banking/financial services law","Definitions of 'farm debt' and 'farming operation' may have technical boundaries affecting eligibility","Procedural requirements around timing and notification before enforcement action can be taken","Accreditation framework for mediators adds a regulatory layer","Exemptions and carve-outs (e.g. situations where mediation can be bypassed) require careful navigation","Enforcement consequences for creditors who breach the scheme add legal complexity","Analysis is limited by inability to access the actual legislative text, meaning complexity may be higher or lower than assessed"],"plain_english_summary":"## Farm Debt Mediation Act 2018 (SA)\n\n**⚠️ Note: The actual text of this legislation could not be retrieved** — the link provided returned a 'Page Not Found' error from the South Australian legislation website. The analysis below is based on what is generally known about this Act.\n\n### What this Act is about\nThe *Farm Debt Mediation Act 2018* (South Australia) requires creditors (typically banks or lenders) to offer **mediation** (a structured negotiation process with a neutral third party) to farmers **before** they can take enforcement action (such as repossessing farm property or land) over unpaid farm debts.\n\n### Who does it affect?\n- **Farmers and primary producers** in South Australia who are struggling to repay loans secured against farming assets\n- **Banks, lenders and creditors** who hold security (collateral) over farm property\n- **Mediators** accredited to conduct farm debt mediation sessions\n\n### Why does it matter?\n- It gives farmers a **protected window** to negotiate with their lender before losing their land or equipment\n- Lenders **cannot simply take enforcement action** without first going through the mediation process\n- It mirrors similar schemes operating in NSW and Victoria, providing a nationally consistent approach to protecting farming families from sudden financial ruin\n- Mediation is typically **confidential** and without prejudice (meaning statements made during mediation generally cannot be used against you in court)\n\n### Important caveat\nBecause the full legislative text was unavailable, **specific provisions, thresholds, exemptions and penalties** could not be verified. Readers should consult the [SA legislation website](https://www.legislation.sa.gov.au) directly or seek legal advice for precise details."}},"importantCases":[],"_links":{"self":"/api/acts/farm-debt-mediation-act-2018","history":"/api/acts/farm-debt-mediation-act-2018/history","analysis":"/api/acts/farm-debt-mediation-act-2018/analysis","conflicts":"/api/acts/farm-debt-mediation-act-2018/conflicts","importantCases":"/api/acts/farm-debt-mediation-act-2018/important-cases","documents":"/api/acts/farm-debt-mediation-act-2018/documents"}}