{"id":"F2019L00604","name":"Regional Investment Corporation (Agristarter Loans) Rule 2019","slug":"regional-investment-corporation-agristarter-loans-rule-2019","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":99221,"registerId":"commonwealth-F2019L00604-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"## Part 1—Preliminary","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Name","content":"#### 1 Name\n\n  This instrument is the Regional Investment Corporation (Agristarter Loans) Rule 2019.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Authority","content":"#### 3 Authority\n\n  This instrument is made under section 54 of the Regional Investment Corporation Act 2018.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Definitions","content":"#### 4 Definitions\n\n    Note: A number of expressions used in this instrument are defined in the Act, including the following:\n    (a) Board;\n    (b) Corporation;\n    (d) responsible Ministers;\n    (e) constitutional trade or commerce.\n  In this instrument:\n  Act means the Regional Investment Corporation Act 2018.\n  agristarter loan means a first farmer loan or a succession loan.\n\n> farm asset successor means a person who holds the sole or a controlling interest in a farm business and:\n\n    (a) has recently inherited or will inherit farm assets; or\n    (b) has recently acquired or will acquire farm assets under a succession plan.\n\n> Note: Examples of farm assets include farm land, farm infrastructure and farm equipment.\n\n> farm business successor means a person who:\n\n    (a) has recently inherited or will inherit an interest in a farm business; or\n    (b) has recently acquired or will acquire an interest in a farm business under a succession plan.\n\n> first farmer means a person who is seeking to purchase, establish or develop a farm business in which the person holds or will hold the sole or a controlling interest.\n\n> first farmer loan means a loan made to a first farmer under section 9.\n\n> member of a farm business means, where the farm business is carried on by:\n\n    (a) a sole trader—the sole trader; or\n    (b) a partnership—a partner of the partnership; or\n    (c) a trust—a beneficiary or unit‑holder of the trust; or\n    (d) a corporation (within the meaning of the Corporations Act 2001)—a member of the corporation.\n\n> principal business pursuit of a person means a business pursuit:\n\n    (a) to which the person contributes or plans to contribute at least 50 per cent of their labour; and\n    (b) from which the person derives or plans to derive at least 50 percent of their income.\n  program means the Agristarter Loans Program.\n  program guidelines has the meaning set out in subsection 14(1).\n\n> succession arrangements mean the succession planning process or activities identified in the succession planning process.\n\n> succession loan means a loan made to a farm business, a farm business successor or a farm asset successor under section 8.","sortOrder":3},{"sectionNumber":"Part 2","sectionType":"part","heading":"Provision of Loans","content":"## Part 1—Preliminary\n\n#### 1 Name\n\n  This instrument is the Regional Investment Corporation (Agristarter Loans) Rule 2019.\n\n#### 3 Authority\n\n  This instrument is made under section 54 of the Regional Investment Corporation Act 2018.\n\n#### 4 Definitions\n\n    Note: A number of expressions used in this instrument are defined in the Act, including the following:\n    (a) Board;\n    (b) Corporation;\n    (d) responsible Ministers;\n    (e) constitutional trade or commerce.\n  In this instrument:\n  Act means the Regional Investment Corporation Act 2018.\n  agristarter loan means a first farmer loan or a succession loan.\n\n> farm asset successor means a person who holds the sole or a controlling interest in a farm business and:\n\n    (a) has recently inherited or will inherit farm assets; or\n    (b) has recently acquired or will acquire farm assets under a succession plan.\n\n> Note: Examples of farm assets include farm land, farm infrastructure and farm equipment.\n\n> farm business successor means a person who:\n\n    (a) has recently inherited or will inherit an interest in a farm business; or\n    (b) has recently acquired or will acquire an interest in a farm business under a succession plan.\n\n> first farmer means a person who is seeking to purchase, establish or develop a farm business in which the person holds or will hold the sole or a controlling interest.\n\n> first farmer loan means a loan made to a first farmer under section 9.\n\n> member of a farm business means, where the farm business is carried on by:\n\n    (a) a sole trader—the sole trader; or\n    (b) a partnership—a partner of the partnership; or\n    (c) a trust—a beneficiary or unit‑holder of the trust; or\n    (d) a corporation (within the meaning of the Corporations Act 2001)—a member of the corporation.\n\n> principal business pursuit of a person means a business pursuit:\n\n    (a) to which the person contributes or plans to contribute at least 50 per cent of their labour; and\n    (b) from which the person derives or plans to derive at least 50 percent of their income.\n  program means the Agristarter Loans Program.\n  program guidelines has the meaning set out in subsection 14(1).\n\n> succession arrangements mean the succession planning process or activities identified in the succession planning process.\n\n> succession loan means a loan made to a farm business, a farm business successor or a farm asset successor under section 8.\n\n## Part 2—Provision of Loans\n\n#### 5 Prescription of the program\n\n  (1) For the purposes of subsection 8(5) of the Act, the program is prescribed.\n  Purpose of program\n  (2) The purpose of the program is to provide loans to assist:\n    (a) first farmers to purchase, establish or develop a farm business in which they hold or will hold the sole or a controlling interest; or\n    (b) farm businesses, farm business successors and farm asset successors with succession arrangements.\n  Specified constitutional basis of program\n  (3) For the purposes of paragraph 8(5)(a) of the Act, the constitutional basis for the program is the power of the Parliament to make laws with respect to:\n    (a) trade and commerce with other countries, and among the States; and\n    (b) a Territory.\n\n#### 6 Application for an agristarter loan\n\n  (1) To obtain an agristarter loan, a first farmer, farm business, farm business successor or farm asset successor must make an application to the Corporation.\n  (3) The application must:\n    (a) be in writing; and\n    (b) include any information, and be accompanied by any documents, required by the Corporation.\n\n#### 7 When a business is an eligible farm business\n\n  (1) Eligible farm businesses are those:\n    (a) where at least one member of the farm business is an Australian citizen or a permanent resident; and\n    (b) that are financially viable, or have sound prospects of becoming financially viable within the term of the loan; and\n    (c) that undertake all primary production aspects of the business wholly within Australia; and\n    (f) that are carried on by a sole trader, partnership, a trust, or corporation (within the meaning of the Corporations Act 2001); and\n    (g) where the entity carrying on the farm business is registered for tax purposes in Australia with an Australian Business Number, and is registered under the A New Tax System (Goods and Services Tax) Act 1999; and\n    (h) where the entity carrying on the farm business is not under external administration or bankrupt.\n\n#### 8 Grant of a succession loan\n\n  Eligibility requirements—succession loans\n  (1) Subject to subsection (2), the Corporation may grant a loan to a farm business, a farm business successor or a farm asset successor (recipient) where the Corporation is satisfied that:\n    (a) the farm business is undertaking or has undertaken succession planning; and\n    (ab) the loan is to support succession arrangements; and\n    (b) the recipient has obtained or will obtain within a reasonable period a loan on commercial terms; and\n    (c) the recipient is in financial need of a concessional loan; and\n    (d) the recipient has the capacity to repay the loan; and\n    (e) in respect of a loan to support farm business succession, after the succession arrangements are carried out:\n    (i) at least one member of the farm business has experience operating a farm business or a demonstrated potential to operate a farm business; and\n    (ii) at least one member of the farm business intends to have the farm business as their principal business pursuit; and\n    (iii) the business will be an eligible farm business; and\n    (f) in respect of a loan to support farm asset succession, after the succession arrangements are carried out, the farm business in which the farm asset successor holds the sole or a controlling interest:\n    (i) will have at least one member who has experience operating a farm business or a demonstrated potential to operate a farm business; and\n    (ii) will have at least one member who intends to have the farm business as their principal business pursuit; and\n    (iii) will be an eligible farm business; and\n    (g) in respect of succession loans provided directly to a farm business, at least one member of the farm business has the farm business as their principal business pursuit.\n  When a succession loan must not be granted\n  (2) The Corporation must not grant a loan under subsection (1) unless:\n    (a) it is satisfied of the matters set out in subsection (1); and\n    (b) the loan is made:\n    (i) to support farm business succession in respect of a farm business that is engaged solely or mainly in producing commodities for constitutional trade or commerce; or\n    (ia) to support farm asset succession in respect of a farm business in which a farm asset successor holds the sole or a controlling interest, and that is engaged solely or mainly in producing commodities for constitutional trade or commerce; or\n    (ii) for the purpose of encouraging or promoting constitutional trade or commerce.\n\n#### 9 Grant of a first farmer loan\n\n  Eligibility requirements—first farmer loans\n  (1) Subject to subsection (2), the Corporation may grant a loan to a first farmer where the Corporation is satisfied that:\n    (aa) the loan is for one or more of the following purposes:\n    (i) purchasing the sole or a controlling interest in a farm business;\n    (ii) establishing a farm business in which the first farmer will hold the sole or a controlling interest;\n    (iii) developing a farm business that the first farmer has recently acquired or will acquire, being a farm business in which the first farmer holds or will hold the sole or a controlling interest;\n    (iv) developing a farm business that the first farmer has recently established or will establish, being a farm business in which the first farmer holds or will hold the sole or a controlling interest;\n    (v) developing a farm business that involves share farming or farm leasing (or both), being a farm business in which the first farmer holds the sole or a controlling interest; and\n\n> Note 1: A first farmer loan may be granted for one or more of the above purposes. The loan can be used to, among other things, purchase an interest in a farm business, acquire farm assets (including land, infrastructure, equipment and stock), refinance loans associated with a farm business, and cover farm costs (including operating expenses, costs associated with purchasing an interest in a farm business and costs associated with acquiring farm assets).\n\n> Note 2: Where the loan is granted for the purpose of developing a farm business that involves share farming or farm leasing (or both), the loan can be used to develop the farm business even if this results in the farm business no longer involving share farming or farm leasing.\n\n    (a) the first farmer has obtained or will obtain within a reasonable period a loan on commercial terms; and\n    (b) the first farmer is in financial need of a concessional loan; and\n    (c) the first farmer has the capacity to repay the loan; and\n    (d) the farm business will be an eligible farm business; and\n    (e) if subsection (1A) does not apply to the first farmer—the first farmer has not previously held the sole or a majority interest in a farm business other than a recently‑acquired or recently‑established farm business in respect of which the first farmer loan is sought; and\n    (f) the first farmer has at least three years of relevant on‑farm or equivalent experience; and\n    (g) the first farmer intends to have the farm business as their principal business pursuit.\n  (1A) For the purposes of paragraph 9(1)(e), this subsection applies to a first farmer who is seeking a first farmer loan if the first farmer:\n    (a) holds the sole or a majority interest in a farm business that involves share farming or farm leasing (or both); and\n    (b) has not previously held the sole or a majority interest in an estate in fee simple in land on which primary production aspects of a farm business were being undertaken.\n  When a first farmer loan must not be granted\n  (2) The Corporation must not grant a loan under subsection (1) unless:\n    (a) it is satisfied of the matters set out in subsection (1); and\n    (b) the loan is made:\n    (i) in respect of a farm business that is engaged solely or mainly in producing commodities for constitutional trade or commerce; or\n    (ii) for the purpose of encouraging or promoting constitutional trade or commerce.\n\n#### 10 Terms of agristarter loans\n\n  (1) Subject to subsections (2) and (3), the Corporation may set the terms and conditions upon which an agristarter loan is made.\n  Offering agristarter loans\n  (2) The maximum amount of an agristarter loan is the lesser of:\n    (a) the amount that would result in the recipient having 50 per cent of its total debt in Commonwealth funded concessional loans; or\n    (b) $2 million.\n  (3) The Corporation has discretion to set the terms and conditions upon which an agristarter loan is made, provided that the agristarter loan:\n    (aa) is, pursuant to its terms, to be applied:\n    (i) in the case of a succession loan—to support succession arrangements in respect of a farm business that is or will be an eligible farm business; and\n    (ii) in the case of a first farmer loan—to support the purchase, establishment or development of a farm business that is or will be an eligible farm business; and\n    (a) has an initial loan term of ten years; and\n    (b) has an initial interest‑only period of five years; and\n    (d) allows full or partial early repayment (of principal, interest or both, at the recipient’s discretion) at any time without penalty; and\n    (e) is backed by sufficient security.\n\n> Note: Part 2 of the Regional Investment Corporation Operating Mandate Direction 2018 deals with the interest rates applying to the loan.\n\n  Types of security the Corporation must consider\n  (5) For the purposes of paragraph (3)(e)—the Corporation must consider requiring security, including in the form of:\n    (a) a registered mortgage over land; or\n    (b) a registered mortgage over livestock; or\n    (c) a registered security interest in water rights.\n  Meaning of total debt\n  (6) For the purposes of paragraph (2)(a)—total debt means the total debt owed by the recipient in respect of the farm business, including:\n    (a) debt established on commercial terms, at commercial interest rates; and\n    (b) debt established under Commonwealth funded concessional loans,\n  but excluding debts which are not in respect of the farm business, such as personal, credit card and home loan debts.\n\n## Part 3—Administrative matters\n\n#### 11 Notice of decision to grant or refuse loan\n\n  The Corporation will ensure that applicants for agristarter loans are informed of the outcome of their loan application as soon as practicable after a decision on their application has been made.\n\n#### 12 Loan management\n\n  (1) The Corporation must undertake all aspects of its loan management in a prudential manner to minimise the risk of default.\n  (2) The Board must ensure that prudential and arrears management policies and procedures are developed and applied by the Corporation. The Board must ensure at all times that the loan management, arrears management, recovery action, foreclosure arrangements, waiver of debt, write‑offs and dispute/complaints handling are undertaken in accordance with those policies and procedures.\n  (3) In developing its policies and procedures in relation to loan management activities, the Corporation is expected to have regard to the concessional nature of loans and consider the impact on the farm business of any proposed action in relation to the loan. The Corporation must offer, and undertake where required, farm debt mediation.\n  (4) The Corporation may take loan recovery and foreclosure action. Where possible, decisions on foreclosure should be made by the Board, and not by a delegate.\n  (5) The Corporation may waive an unpaid loan debt, in accordance with its arrears management policies and procedures. Before waiving any unpaid loan debt, the Corporation must consult with, and take into account the views of, the responsible Ministers. Where possible, a decision to waive an unpaid loan debt should be made by the Board, and not by a delegate.\n  (6) The Corporation will offer and promote refinancing to eligible farm businesses under the program. This may include debt from other concessional loan programs.\n\n#### 13 Internal review\n\n  (1) The Board must ensure that an internal review procedure for decisions to grant or refuse loans is developed and applied by the Corporation.\n  (2) The internal review procedure is required to be transparent, robust and fair. Specifically, the internal review procedure:\n    (a) will require the internal review to be carried out by a person who was not the primary decision‑maker in the original decision;\n    (b) will require the decision on the internal review to be made by an officer within the Corporation who was not the primary decision‑maker in the original decision (who may be the same person referred to in paragraph (a)); and\n    (c) must be consistent with principles of procedural fairness.\n\n#### 14 Corporation must publish program guidelines\n\n  (1) The Corporation must develop and publish written guidelines relating to the program (the program guidelines).\n  (1A) The program guidelines must be developed in consultation with the responsible Ministers.\n  (2) Without limiting subsection (1), the program guidelines must:\n    (aa) specify the uses to which agristarter loans can be applied, consistently with this rule and having regard to the purpose of the program; and\n    (a) include details of the right to request an internal review of application decisions and the process for requesting such a review; and\n    (b) contain information about the types of security the Corporation will consider accepting in relation to a loan; and\n    (c) specify when the Corporation will consider a person to be an Australian citizen or permanent resident within the meaning of paragraph 7(1)(a).\n\n#### 15 Corporation must report to responsible Ministers\n\n  (1) The Corporation must provide a report to the responsible Ministers as at the end of every March, June, September and December in respect of the program. The report is to include information regarding the uptake of loans, details of the loan portfolio, financial performance information and any other matters requested by the responsible Ministers.\n  (2) The Corporation is expected to proactively advise the Commonwealth on matters that will improve the operation and policy outcomes of loans.\n\n> Note: In this instrument, a reference to a loan is a reference to an agristarter loan under this program (see section 4).\n\n#### 16 Responsible Ministers may give written directions\n\n  For the purposes of subparagraph 8(5)(b)(iii) of the Act, to the extent that the responsible Ministers cannot otherwise give directions to the Corporation under section 11 of the Act, the responsible Ministers may give written directions to the Corporation in relation to the program.\n\n## Part 4—Financial matters\n\n#### 17 Corporation may charge transaction costs\n\n  For the purposes of subparagraph 8(5)(b)(i) of the Act, the Corporation may charge a recipient for transaction costs incurred by the Corporation in relation to an agristarter loan.\n\n#### 18 Funding arrangements\n\n  (1) Funds for loans will be provided to the Corporation upon the Corporation’s request to enable the Corporation to advance loan funds to recipients as required.\n  (2) The Corporation must:\n    (a) only request funds as they are required to advance loan funds to recipients; and\n    (b) only use funds provided for loans for that purpose.\n  (3) The Corporation is authorised to collect all loan repayments (including principal repayments and payments of interest) and transaction costs from loan recipients.\n  (4) All loan repayments (including principal repayments and payments of interest) received by the Corporation from loan recipients must be paid to the Commonwealth as soon as reasonably practicable.\n  (5) Any funds received by the Corporation from farm businesses under section 17 to reimburse the Corporation for transaction costs may be retained by the Corporation and do not need to be paid to the Commonwealth.\n\n## Part 5—Application, saving and transitional provisions\n\n#### 19 Regional Investment Corporation Legislation Amendment (Interest Rates) Instrument 2026—application provision\n\n  The amendments of this instrument made by Part 2 of Schedule 1 to the Regional Investment Corporation Legislation Amendment (Interest Rates) Instrument 2026 apply in relation to the 6‑month period beginning on 1 February 2026 and each later 6‑month period.","sortOrder":4},{"sectionNumber":"5","sectionType":"section","heading":"Prescription of the program","content":"#### 5 Prescription of the program\n\n  (1) For the purposes of subsection 8(5) of the Act, the program is prescribed.\n  Purpose of program\n  (2) The purpose of the program is to provide loans to assist:\n    (a) first farmers to purchase, establish or develop a farm business in which they hold or will hold the sole or a controlling interest; or\n    (b) farm businesses, farm business successors and farm asset successors with succession arrangements.\n  Specified constitutional basis of program\n  (3) For the purposes of paragraph 8(5)(a) of the Act, the constitutional basis for the program is the power of the Parliament to make laws with respect to:\n    (a) trade and commerce with other countries, and among the States; and\n    (b) a Territory.","sortOrder":5},{"sectionNumber":"6","sectionType":"section","heading":"Application for an agristarter loan","content":"#### 6 Application for an agristarter loan\n\n  (1) To obtain an agristarter loan, a first farmer, farm business, farm business successor or farm asset successor must make an application to the Corporation.\n  (3) The application must:\n    (a) be in writing; and\n    (b) include any information, and be accompanied by any documents, required by the Corporation.","sortOrder":6},{"sectionNumber":"7","sectionType":"section","heading":"When a business is an eligible farm business","content":"#### 7 When a business is an eligible farm business\n\n  (1) Eligible farm businesses are those:\n    (a) where at least one member of the farm business is an Australian citizen or a permanent resident; and\n    (b) that are financially viable, or have sound prospects of becoming financially viable within the term of the loan; and\n    (c) that undertake all primary production aspects of the business wholly within Australia; and\n    (f) that are carried on by a sole trader, partnership, a trust, or corporation (within the meaning of the Corporations Act 2001); and\n    (g) where the entity carrying on the farm business is registered for tax purposes in Australia with an Australian Business Number, and is registered under the A New Tax System (Goods and Services Tax) Act 1999; and\n    (h) where the entity carrying on the farm business is not under external administration or bankrupt.","sortOrder":7},{"sectionNumber":"8","sectionType":"section","heading":"Grant of a succession loan","content":"#### 8 Grant of a succession loan\n\n  Eligibility requirements—succession loans\n  (1) Subject to subsection (2), the Corporation may grant a loan to a farm business, a farm business successor or a farm asset successor (recipient) where the Corporation is satisfied that:\n    (a) the farm business is undertaking or has undertaken succession planning; and\n    (ab) the loan is to support succession arrangements; and\n    (b) the recipient has obtained or will obtain within a reasonable period a loan on commercial terms; and\n    (c) the recipient is in financial need of a concessional loan; and\n    (d) the recipient has the capacity to repay the loan; and\n    (e) in respect of a loan to support farm business succession, after the succession arrangements are carried out:\n    (i) at least one member of the farm business has experience operating a farm business or a demonstrated potential to operate a farm business; and\n    (ii) at least one member of the farm business intends to have the farm business as their principal business pursuit; and\n    (iii) the business will be an eligible farm business; and\n    (f) in respect of a loan to support farm asset succession, after the succession arrangements are carried out, the farm business in which the farm asset successor holds the sole or a controlling interest:\n    (i) will have at least one member who has experience operating a farm business or a demonstrated potential to operate a farm business; and\n    (ii) will have at least one member who intends to have the farm business as their principal business pursuit; and\n    (iii) will be an eligible farm business; and\n    (g) in respect of succession loans provided directly to a farm business, at least one member of the farm business has the farm business as their principal business pursuit.\n  When a succession loan must not be granted\n  (2) The Corporation must not grant a loan under subsection (1) unless:\n    (a) it is satisfied of the matters set out in subsection (1); and\n    (b) the loan is made:\n    (i) to support farm business succession in respect of a farm business that is engaged solely or mainly in producing commodities for constitutional trade or commerce; or\n    (ia) to support farm asset succession in respect of a farm business in which a farm asset successor holds the sole or a controlling interest, and that is engaged solely or mainly in producing commodities for constitutional trade or commerce; or\n    (ii) for the purpose of encouraging or promoting constitutional trade or commerce.","sortOrder":8},{"sectionNumber":"9","sectionType":"section","heading":"Grant of a first farmer loan","content":"#### 9 Grant of a first farmer loan\n\n  Eligibility requirements—first farmer loans\n  (1) Subject to subsection (2), the Corporation may grant a loan to a first farmer where the Corporation is satisfied that:\n    (aa) the loan is for one or more of the following purposes:\n    (i) purchasing the sole or a controlling interest in a farm business;\n    (ii) establishing a farm business in which the first farmer will hold the sole or a controlling interest;\n    (iii) developing a farm business that the first farmer has recently acquired or will acquire, being a farm business in which the first farmer holds or will hold the sole or a controlling interest;\n    (iv) developing a farm business that the first farmer has recently established or will establish, being a farm business in which the first farmer holds or will hold the sole or a controlling interest;\n    (v) developing a farm business that involves share farming or farm leasing (or both), being a farm business in which the first farmer holds the sole or a controlling interest; and\n\n> Note 1: A first farmer loan may be granted for one or more of the above purposes. The loan can be used to, among other things, purchase an interest in a farm business, acquire farm assets (including land, infrastructure, equipment and stock), refinance loans associated with a farm business, and cover farm costs (including operating expenses, costs associated with purchasing an interest in a farm business and costs associated with acquiring farm assets).\n\n> Note 2: Where the loan is granted for the purpose of developing a farm business that involves share farming or farm leasing (or both), the loan can be used to develop the farm business even if this results in the farm business no longer involving share farming or farm leasing.\n\n    (a) the first farmer has obtained or will obtain within a reasonable period a loan on commercial terms; and\n    (b) the first farmer is in financial need of a concessional loan; and\n    (c) the first farmer has the capacity to repay the loan; and\n    (d) the farm business will be an eligible farm business; and\n    (e) if subsection (1A) does not apply to the first farmer—the first farmer has not previously held the sole or a majority interest in a farm business other than a recently‑acquired or recently‑established farm business in respect of which the first farmer loan is sought; and\n    (f) the first farmer has at least three years of relevant on‑farm or equivalent experience; and\n    (g) the first farmer intends to have the farm business as their principal business pursuit.\n  (1A) For the purposes of paragraph 9(1)(e), this subsection applies to a first farmer who is seeking a first farmer loan if the first farmer:\n    (a) holds the sole or a majority interest in a farm business that involves share farming or farm leasing (or both); and\n    (b) has not previously held the sole or a majority interest in an estate in fee simple in land on which primary production aspects of a farm business were being undertaken.\n  When a first farmer loan must not be granted\n  (2) The Corporation must not grant a loan under subsection (1) unless:\n    (a) it is satisfied of the matters set out in subsection (1); and\n    (b) the loan is made:\n    (i) in respect of a farm business that is engaged solely or mainly in producing commodities for constitutional trade or commerce; or\n    (ii) for the purpose of encouraging or promoting constitutional trade or commerce.","sortOrder":9},{"sectionNumber":"10","sectionType":"section","heading":"Terms of agristarter loans","content":"#### 10 Terms of agristarter loans\n\n  (1) Subject to subsections (2) and (3), the Corporation may set the terms and conditions upon which an agristarter loan is made.\n  Offering agristarter loans\n  (2) The maximum amount of an agristarter loan is the lesser of:\n    (a) the amount that would result in the recipient having 50 per cent of its total debt in Commonwealth funded concessional loans; or\n    (b) $2 million.\n  (3) The Corporation has discretion to set the terms and conditions upon which an agristarter loan is made, provided that the agristarter loan:\n    (aa) is, pursuant to its terms, to be applied:\n    (i) in the case of a succession loan—to support succession arrangements in respect of a farm business that is or will be an eligible farm business; and\n    (ii) in the case of a first farmer loan—to support the purchase, establishment or development of a farm business that is or will be an eligible farm business; and\n    (a) has an initial loan term of ten years; and\n    (b) has an initial interest‑only period of five years; and\n    (d) allows full or partial early repayment (of principal, interest or both, at the recipient’s discretion) at any time without penalty; and\n    (e) is backed by sufficient security.\n\n> Note: Part 2 of the Regional Investment Corporation Operating Mandate Direction 2018 deals with the interest rates applying to the loan.\n\n  Types of security the Corporation must consider\n  (5) For the purposes of paragraph (3)(e)—the Corporation must consider requiring security, including in the form of:\n    (a) a registered mortgage over land; or\n    (b) a registered mortgage over livestock; or\n    (c) a registered security interest in water rights.\n  Meaning of total debt\n  (6) For the purposes of paragraph (2)(a)—total debt means the total debt owed by the recipient in respect of the farm business, including:\n    (a) debt established on commercial terms, at commercial interest rates; and\n    (b) debt established under Commonwealth funded concessional loans,\n  but excluding debts which are not in respect of the farm business, such as personal, credit card and home loan debts.","sortOrder":10},{"sectionNumber":"Part 3","sectionType":"part","heading":"Administrative matters","content":"## Part 1—Preliminary\n\n#### 1 Name\n\n  This instrument is the Regional Investment Corporation (Agristarter Loans) Rule 2019.\n\n#### 3 Authority\n\n  This instrument is made under section 54 of the Regional Investment Corporation Act 2018.\n\n#### 4 Definitions\n\n    Note: A number of expressions used in this instrument are defined in the Act, including the following:\n    (a) Board;\n    (b) Corporation;\n    (d) responsible Ministers;\n    (e) constitutional trade or commerce.\n  In this instrument:\n  Act means the Regional Investment Corporation Act 2018.\n  agristarter loan means a first farmer loan or a succession loan.\n\n> farm asset successor means a person who holds the sole or a controlling interest in a farm business and:\n\n    (a) has recently inherited or will inherit farm assets; or\n    (b) has recently acquired or will acquire farm assets under a succession plan.\n\n> Note: Examples of farm assets include farm land, farm infrastructure and farm equipment.\n\n> farm business successor means a person who:\n\n    (a) has recently inherited or will inherit an interest in a farm business; or\n    (b) has recently acquired or will acquire an interest in a farm business under a succession plan.\n\n> first farmer means a person who is seeking to purchase, establish or develop a farm business in which the person holds or will hold the sole or a controlling interest.\n\n> first farmer loan means a loan made to a first farmer under section 9.\n\n> member of a farm business means, where the farm business is carried on by:\n\n    (a) a sole trader—the sole trader; or\n    (b) a partnership—a partner of the partnership; or\n    (c) a trust—a beneficiary or unit‑holder of the trust; or\n    (d) a corporation (within the meaning of the Corporations Act 2001)—a member of the corporation.\n\n> principal business pursuit of a person means a business pursuit:\n\n    (a) to which the person contributes or plans to contribute at least 50 per cent of their labour; and\n    (b) from which the person derives or plans to derive at least 50 percent of their income.\n  program means the Agristarter Loans Program.\n  program guidelines has the meaning set out in subsection 14(1).\n\n> succession arrangements mean the succession planning process or activities identified in the succession planning process.\n\n> succession loan means a loan made to a farm business, a farm business successor or a farm asset successor under section 8.\n\n## Part 2—Provision of Loans\n\n#### 5 Prescription of the program\n\n  (1) For the purposes of subsection 8(5) of the Act, the program is prescribed.\n  Purpose of program\n  (2) The purpose of the program is to provide loans to assist:\n    (a) first farmers to purchase, establish or develop a farm business in which they hold or will hold the sole or a controlling interest; or\n    (b) farm businesses, farm business successors and farm asset successors with succession arrangements.\n  Specified constitutional basis of program\n  (3) For the purposes of paragraph 8(5)(a) of the Act, the constitutional basis for the program is the power of the Parliament to make laws with respect to:\n    (a) trade and commerce with other countries, and among the States; and\n    (b) a Territory.\n\n#### 6 Application for an agristarter loan\n\n  (1) To obtain an agristarter loan, a first farmer, farm business, farm business successor or farm asset successor must make an application to the Corporation.\n  (3) The application must:\n    (a) be in writing; and\n    (b) include any information, and be accompanied by any documents, required by the Corporation.\n\n#### 7 When a business is an eligible farm business\n\n  (1) Eligible farm businesses are those:\n    (a) where at least one member of the farm business is an Australian citizen or a permanent resident; and\n    (b) that are financially viable, or have sound prospects of becoming financially viable within the term of the loan; and\n    (c) that undertake all primary production aspects of the business wholly within Australia; and\n    (f) that are carried on by a sole trader, partnership, a trust, or corporation (within the meaning of the Corporations Act 2001); and\n    (g) where the entity carrying on the farm business is registered for tax purposes in Australia with an Australian Business Number, and is registered under the A New Tax System (Goods and Services Tax) Act 1999; and\n    (h) where the entity carrying on the farm business is not under external administration or bankrupt.\n\n#### 8 Grant of a succession loan\n\n  Eligibility requirements—succession loans\n  (1) Subject to subsection (2), the Corporation may grant a loan to a farm business, a farm business successor or a farm asset successor (recipient) where the Corporation is satisfied that:\n    (a) the farm business is undertaking or has undertaken succession planning; and\n    (ab) the loan is to support succession arrangements; and\n    (b) the recipient has obtained or will obtain within a reasonable period a loan on commercial terms; and\n    (c) the recipient is in financial need of a concessional loan; and\n    (d) the recipient has the capacity to repay the loan; and\n    (e) in respect of a loan to support farm business succession, after the succession arrangements are carried out:\n    (i) at least one member of the farm business has experience operating a farm business or a demonstrated potential to operate a farm business; and\n    (ii) at least one member of the farm business intends to have the farm business as their principal business pursuit; and\n    (iii) the business will be an eligible farm business; and\n    (f) in respect of a loan to support farm asset succession, after the succession arrangements are carried out, the farm business in which the farm asset successor holds the sole or a controlling interest:\n    (i) will have at least one member who has experience operating a farm business or a demonstrated potential to operate a farm business; and\n    (ii) will have at least one member who intends to have the farm business as their principal business pursuit; and\n    (iii) will be an eligible farm business; and\n    (g) in respect of succession loans provided directly to a farm business, at least one member of the farm business has the farm business as their principal business pursuit.\n  When a succession loan must not be granted\n  (2) The Corporation must not grant a loan under subsection (1) unless:\n    (a) it is satisfied of the matters set out in subsection (1); and\n    (b) the loan is made:\n    (i) to support farm business succession in respect of a farm business that is engaged solely or mainly in producing commodities for constitutional trade or commerce; or\n    (ia) to support farm asset succession in respect of a farm business in which a farm asset successor holds the sole or a controlling interest, and that is engaged solely or mainly in producing commodities for constitutional trade or commerce; or\n    (ii) for the purpose of encouraging or promoting constitutional trade or commerce.\n\n#### 9 Grant of a first farmer loan\n\n  Eligibility requirements—first farmer loans\n  (1) Subject to subsection (2), the Corporation may grant a loan to a first farmer where the Corporation is satisfied that:\n    (aa) the loan is for one or more of the following purposes:\n    (i) purchasing the sole or a controlling interest in a farm business;\n    (ii) establishing a farm business in which the first farmer will hold the sole or a controlling interest;\n    (iii) developing a farm business that the first farmer has recently acquired or will acquire, being a farm business in which the first farmer holds or will hold the sole or a controlling interest;\n    (iv) developing a farm business that the first farmer has recently established or will establish, being a farm business in which the first farmer holds or will hold the sole or a controlling interest;\n    (v) developing a farm business that involves share farming or farm leasing (or both), being a farm business in which the first farmer holds the sole or a controlling interest; and\n\n> Note 1: A first farmer loan may be granted for one or more of the above purposes. The loan can be used to, among other things, purchase an interest in a farm business, acquire farm assets (including land, infrastructure, equipment and stock), refinance loans associated with a farm business, and cover farm costs (including operating expenses, costs associated with purchasing an interest in a farm business and costs associated with acquiring farm assets).\n\n> Note 2: Where the loan is granted for the purpose of developing a farm business that involves share farming or farm leasing (or both), the loan can be used to develop the farm business even if this results in the farm business no longer involving share farming or farm leasing.\n\n    (a) the first farmer has obtained or will obtain within a reasonable period a loan on commercial terms; and\n    (b) the first farmer is in financial need of a concessional loan; and\n    (c) the first farmer has the capacity to repay the loan; and\n    (d) the farm business will be an eligible farm business; and\n    (e) if subsection (1A) does not apply to the first farmer—the first farmer has not previously held the sole or a majority interest in a farm business other than a recently‑acquired or recently‑established farm business in respect of which the first farmer loan is sought; and\n    (f) the first farmer has at least three years of relevant on‑farm or equivalent experience; and\n    (g) the first farmer intends to have the farm business as their principal business pursuit.\n  (1A) For the purposes of paragraph 9(1)(e), this subsection applies to a first farmer who is seeking a first farmer loan if the first farmer:\n    (a) holds the sole or a majority interest in a farm business that involves share farming or farm leasing (or both); and\n    (b) has not previously held the sole or a majority interest in an estate in fee simple in land on which primary production aspects of a farm business were being undertaken.\n  When a first farmer loan must not be granted\n  (2) The Corporation must not grant a loan under subsection (1) unless:\n    (a) it is satisfied of the matters set out in subsection (1); and\n    (b) the loan is made:\n    (i) in respect of a farm business that is engaged solely or mainly in producing commodities for constitutional trade or commerce; or\n    (ii) for the purpose of encouraging or promoting constitutional trade or commerce.\n\n#### 10 Terms of agristarter loans\n\n  (1) Subject to subsections (2) and (3), the Corporation may set the terms and conditions upon which an agristarter loan is made.\n  Offering agristarter loans\n  (2) The maximum amount of an agristarter loan is the lesser of:\n    (a) the amount that would result in the recipient having 50 per cent of its total debt in Commonwealth funded concessional loans; or\n    (b) $2 million.\n  (3) The Corporation has discretion to set the terms and conditions upon which an agristarter loan is made, provided that the agristarter loan:\n    (aa) is, pursuant to its terms, to be applied:\n    (i) in the case of a succession loan—to support succession arrangements in respect of a farm business that is or will be an eligible farm business; and\n    (ii) in the case of a first farmer loan—to support the purchase, establishment or development of a farm business that is or will be an eligible farm business; and\n    (a) has an initial loan term of ten years; and\n    (b) has an initial interest‑only period of five years; and\n    (d) allows full or partial early repayment (of principal, interest or both, at the recipient’s discretion) at any time without penalty; and\n    (e) is backed by sufficient security.\n\n> Note: Part 2 of the Regional Investment Corporation Operating Mandate Direction 2018 deals with the interest rates applying to the loan.\n\n  Types of security the Corporation must consider\n  (5) For the purposes of paragraph (3)(e)—the Corporation must consider requiring security, including in the form of:\n    (a) a registered mortgage over land; or\n    (b) a registered mortgage over livestock; or\n    (c) a registered security interest in water rights.\n  Meaning of total debt\n  (6) For the purposes of paragraph (2)(a)—total debt means the total debt owed by the recipient in respect of the farm business, including:\n    (a) debt established on commercial terms, at commercial interest rates; and\n    (b) debt established under Commonwealth funded concessional loans,\n  but excluding debts which are not in respect of the farm business, such as personal, credit card and home loan debts.\n\n## Part 3—Administrative matters\n\n#### 11 Notice of decision to grant or refuse loan\n\n  The Corporation will ensure that applicants for agristarter loans are informed of the outcome of their loan application as soon as practicable after a decision on their application has been made.\n\n#### 12 Loan management\n\n  (1) The Corporation must undertake all aspects of its loan management in a prudential manner to minimise the risk of default.\n  (2) The Board must ensure that prudential and arrears management policies and procedures are developed and applied by the Corporation. The Board must ensure at all times that the loan management, arrears management, recovery action, foreclosure arrangements, waiver of debt, write‑offs and dispute/complaints handling are undertaken in accordance with those policies and procedures.\n  (3) In developing its policies and procedures in relation to loan management activities, the Corporation is expected to have regard to the concessional nature of loans and consider the impact on the farm business of any proposed action in relation to the loan. The Corporation must offer, and undertake where required, farm debt mediation.\n  (4) The Corporation may take loan recovery and foreclosure action. Where possible, decisions on foreclosure should be made by the Board, and not by a delegate.\n  (5) The Corporation may waive an unpaid loan debt, in accordance with its arrears management policies and procedures. Before waiving any unpaid loan debt, the Corporation must consult with, and take into account the views of, the responsible Ministers. Where possible, a decision to waive an unpaid loan debt should be made by the Board, and not by a delegate.\n  (6) The Corporation will offer and promote refinancing to eligible farm businesses under the program. This may include debt from other concessional loan programs.\n\n#### 13 Internal review\n\n  (1) The Board must ensure that an internal review procedure for decisions to grant or refuse loans is developed and applied by the Corporation.\n  (2) The internal review procedure is required to be transparent, robust and fair. Specifically, the internal review procedure:\n    (a) will require the internal review to be carried out by a person who was not the primary decision‑maker in the original decision;\n    (b) will require the decision on the internal review to be made by an officer within the Corporation who was not the primary decision‑maker in the original decision (who may be the same person referred to in paragraph (a)); and\n    (c) must be consistent with principles of procedural fairness.\n\n#### 14 Corporation must publish program guidelines\n\n  (1) The Corporation must develop and publish written guidelines relating to the program (the program guidelines).\n  (1A) The program guidelines must be developed in consultation with the responsible Ministers.\n  (2) Without limiting subsection (1), the program guidelines must:\n    (aa) specify the uses to which agristarter loans can be applied, consistently with this rule and having regard to the purpose of the program; and\n    (a) include details of the right to request an internal review of application decisions and the process for requesting such a review; and\n    (b) contain information about the types of security the Corporation will consider accepting in relation to a loan; and\n    (c) specify when the Corporation will consider a person to be an Australian citizen or permanent resident within the meaning of paragraph 7(1)(a).\n\n#### 15 Corporation must report to responsible Ministers\n\n  (1) The Corporation must provide a report to the responsible Ministers as at the end of every March, June, September and December in respect of the program. The report is to include information regarding the uptake of loans, details of the loan portfolio, financial performance information and any other matters requested by the responsible Ministers.\n  (2) The Corporation is expected to proactively advise the Commonwealth on matters that will improve the operation and policy outcomes of loans.\n\n> Note: In this instrument, a reference to a loan is a reference to an agristarter loan under this program (see section 4).\n\n#### 16 Responsible Ministers may give written directions\n\n  For the purposes of subparagraph 8(5)(b)(iii) of the Act, to the extent that the responsible Ministers cannot otherwise give directions to the Corporation under section 11 of the Act, the responsible Ministers may give written directions to the Corporation in relation to the program.\n\n## Part 4—Financial matters\n\n#### 17 Corporation may charge transaction costs\n\n  For the purposes of subparagraph 8(5)(b)(i) of the Act, the Corporation may charge a recipient for transaction costs incurred by the Corporation in relation to an agristarter loan.\n\n#### 18 Funding arrangements\n\n  (1) Funds for loans will be provided to the Corporation upon the Corporation’s request to enable the Corporation to advance loan funds to recipients as required.\n  (2) The Corporation must:\n    (a) only request funds as they are required to advance loan funds to recipients; and\n    (b) only use funds provided for loans for that purpose.\n  (3) The Corporation is authorised to collect all loan repayments (including principal repayments and payments of interest) and transaction costs from loan recipients.\n  (4) All loan repayments (including principal repayments and payments of interest) received by the Corporation from loan recipients must be paid to the Commonwealth as soon as reasonably practicable.\n  (5) Any funds received by the Corporation from farm businesses under section 17 to reimburse the Corporation for transaction costs may be retained by the Corporation and do not need to be paid to the Commonwealth.\n\n## Part 5—Application, saving and transitional provisions\n\n#### 19 Regional Investment Corporation Legislation Amendment (Interest Rates) Instrument 2026—application provision\n\n  The amendments of this instrument made by Part 2 of Schedule 1 to the Regional Investment Corporation Legislation Amendment (Interest Rates) Instrument 2026 apply in relation to the 6‑month period beginning on 1 February 2026 and each later 6‑month period.","sortOrder":11},{"sectionNumber":"11","sectionType":"section","heading":"Notice of decision to grant or refuse loan","content":"#### 11 Notice of decision to grant or refuse loan\n\n  The Corporation will ensure that applicants for agristarter loans are informed of the outcome of their loan application as soon as practicable after a decision on their application has been made.","sortOrder":12},{"sectionNumber":"12","sectionType":"section","heading":"Loan management","content":"#### 12 Loan management\n\n  (1) The Corporation must undertake all aspects of its loan management in a prudential manner to minimise the risk of default.\n  (2) The Board must ensure that prudential and arrears management policies and procedures are developed and applied by the Corporation. The Board must ensure at all times that the loan management, arrears management, recovery action, foreclosure arrangements, waiver of debt, write‑offs and dispute/complaints handling are undertaken in accordance with those policies and procedures.\n  (3) In developing its policies and procedures in relation to loan management activities, the Corporation is expected to have regard to the concessional nature of loans and consider the impact on the farm business of any proposed action in relation to the loan. The Corporation must offer, and undertake where required, farm debt mediation.\n  (4) The Corporation may take loan recovery and foreclosure action. Where possible, decisions on foreclosure should be made by the Board, and not by a delegate.\n  (5) The Corporation may waive an unpaid loan debt, in accordance with its arrears management policies and procedures. Before waiving any unpaid loan debt, the Corporation must consult with, and take into account the views of, the responsible Ministers. Where possible, a decision to waive an unpaid loan debt should be made by the Board, and not by a delegate.\n  (6) The Corporation will offer and promote refinancing to eligible farm businesses under the program. This may include debt from other concessional loan programs.","sortOrder":13},{"sectionNumber":"13","sectionType":"section","heading":"Internal review","content":"#### 13 Internal review\n\n  (1) The Board must ensure that an internal review procedure for decisions to grant or refuse loans is developed and applied by the Corporation.\n  (2) The internal review procedure is required to be transparent, robust and fair. Specifically, the internal review procedure:\n    (a) will require the internal review to be carried out by a person who was not the primary decision‑maker in the original decision;\n    (b) will require the decision on the internal review to be made by an officer within the Corporation who was not the primary decision‑maker in the original decision (who may be the same person referred to in paragraph (a)); and\n    (c) must be consistent with principles of procedural fairness.","sortOrder":14},{"sectionNumber":"14","sectionType":"section","heading":"Corporation must publish program guidelines","content":"#### 14 Corporation must publish program guidelines\n\n  (1) The Corporation must develop and publish written guidelines relating to the program (the program guidelines).\n  (1A) The program guidelines must be developed in consultation with the responsible Ministers.\n  (2) Without limiting subsection (1), the program guidelines must:\n    (aa) specify the uses to which agristarter loans can be applied, consistently with this rule and having regard to the purpose of the program; and\n    (a) include details of the right to request an internal review of application decisions and the process for requesting such a review; and\n    (b) contain information about the types of security the Corporation will consider accepting in relation to a loan; and\n    (c) specify when the Corporation will consider a person to be an Australian citizen or permanent resident within the meaning of paragraph 7(1)(a).","sortOrder":15},{"sectionNumber":"15","sectionType":"section","heading":"Corporation must report to responsible Ministers","content":"#### 15 Corporation must report to responsible Ministers\n\n  (1) The Corporation must provide a report to the responsible Ministers as at the end of every March, June, September and December in respect of the program. The report is to include information regarding the uptake of loans, details of the loan portfolio, financial performance information and any other matters requested by the responsible Ministers.\n  (2) The Corporation is expected to proactively advise the Commonwealth on matters that will improve the operation and policy outcomes of loans.\n\n> Note: In this instrument, a reference to a loan is a reference to an agristarter loan under this program (see section 4).","sortOrder":16},{"sectionNumber":"16","sectionType":"section","heading":"Responsible Ministers may give written directions","content":"#### 16 Responsible Ministers may give written directions\n\n  For the purposes of subparagraph 8(5)(b)(iii) of the Act, to the extent that the responsible Ministers cannot otherwise give directions to the Corporation under section 11 of the Act, the responsible Ministers may give written directions to the Corporation in relation to the program.","sortOrder":17},{"sectionNumber":"Part 4","sectionType":"part","heading":"Financial matters","content":"## Part 1—Preliminary\n\n#### 1 Name\n\n  This instrument is the Regional Investment Corporation (Agristarter Loans) Rule 2019.\n\n#### 3 Authority\n\n  This instrument is made under section 54 of the Regional Investment Corporation Act 2018.\n\n#### 4 Definitions\n\n    Note: A number of expressions used in this instrument are defined in the Act, including the following:\n    (a) Board;\n    (b) Corporation;\n    (d) responsible Ministers;\n    (e) constitutional trade or commerce.\n  In this instrument:\n  Act means the Regional Investment Corporation Act 2018.\n  agristarter loan means a first farmer loan or a succession loan.\n\n> farm asset successor means a person who holds the sole or a controlling interest in a farm business and:\n\n    (a) has recently inherited or will inherit farm assets; or\n    (b) has recently acquired or will acquire farm assets under a succession plan.\n\n> Note: Examples of farm assets include farm land, farm infrastructure and farm equipment.\n\n> farm business successor means a person who:\n\n    (a) has recently inherited or will inherit an interest in a farm business; or\n    (b) has recently acquired or will acquire an interest in a farm business under a succession plan.\n\n> first farmer means a person who is seeking to purchase, establish or develop a farm business in which the person holds or will hold the sole or a controlling interest.\n\n> first farmer loan means a loan made to a first farmer under section 9.\n\n> member of a farm business means, where the farm business is carried on by:\n\n    (a) a sole trader—the sole trader; or\n    (b) a partnership—a partner of the partnership; or\n    (c) a trust—a beneficiary or unit‑holder of the trust; or\n    (d) a corporation (within the meaning of the Corporations Act 2001)—a member of the corporation.\n\n> principal business pursuit of a person means a business pursuit:\n\n    (a) to which the person contributes or plans to contribute at least 50 per cent of their labour; and\n    (b) from which the person derives or plans to derive at least 50 percent of their income.\n  program means the Agristarter Loans Program.\n  program guidelines has the meaning set out in subsection 14(1).\n\n> succession arrangements mean the succession planning process or activities identified in the succession planning process.\n\n> succession loan means a loan made to a farm business, a farm business successor or a farm asset successor under section 8.\n\n## Part 2—Provision of Loans\n\n#### 5 Prescription of the program\n\n  (1) For the purposes of subsection 8(5) of the Act, the program is prescribed.\n  Purpose of program\n  (2) The purpose of the program is to provide loans to assist:\n    (a) first farmers to purchase, establish or develop a farm business in which they hold or will hold the sole or a controlling interest; or\n    (b) farm businesses, farm business successors and farm asset successors with succession arrangements.\n  Specified constitutional basis of program\n  (3) For the purposes of paragraph 8(5)(a) of the Act, the constitutional basis for the program is the power of the Parliament to make laws with respect to:\n    (a) trade and commerce with other countries, and among the States; and\n    (b) a Territory.\n\n#### 6 Application for an agristarter loan\n\n  (1) To obtain an agristarter loan, a first farmer, farm business, farm business successor or farm asset successor must make an application to the Corporation.\n  (3) The application must:\n    (a) be in writing; and\n    (b) include any information, and be accompanied by any documents, required by the Corporation.\n\n#### 7 When a business is an eligible farm business\n\n  (1) Eligible farm businesses are those:\n    (a) where at least one member of the farm business is an Australian citizen or a permanent resident; and\n    (b) that are financially viable, or have sound prospects of becoming financially viable within the term of the loan; and\n    (c) that undertake all primary production aspects of the business wholly within Australia; and\n    (f) that are carried on by a sole trader, partnership, a trust, or corporation (within the meaning of the Corporations Act 2001); and\n    (g) where the entity carrying on the farm business is registered for tax purposes in Australia with an Australian Business Number, and is registered under the A New Tax System (Goods and Services Tax) Act 1999; and\n    (h) where the entity carrying on the farm business is not under external administration or bankrupt.\n\n#### 8 Grant of a succession loan\n\n  Eligibility requirements—succession loans\n  (1) Subject to subsection (2), the Corporation may grant a loan to a farm business, a farm business successor or a farm asset successor (recipient) where the Corporation is satisfied that:\n    (a) the farm business is undertaking or has undertaken succession planning; and\n    (ab) the loan is to support succession arrangements; and\n    (b) the recipient has obtained or will obtain within a reasonable period a loan on commercial terms; and\n    (c) the recipient is in financial need of a concessional loan; and\n    (d) the recipient has the capacity to repay the loan; and\n    (e) in respect of a loan to support farm business succession, after the succession arrangements are carried out:\n    (i) at least one member of the farm business has experience operating a farm business or a demonstrated potential to operate a farm business; and\n    (ii) at least one member of the farm business intends to have the farm business as their principal business pursuit; and\n    (iii) the business will be an eligible farm business; and\n    (f) in respect of a loan to support farm asset succession, after the succession arrangements are carried out, the farm business in which the farm asset successor holds the sole or a controlling interest:\n    (i) will have at least one member who has experience operating a farm business or a demonstrated potential to operate a farm business; and\n    (ii) will have at least one member who intends to have the farm business as their principal business pursuit; and\n    (iii) will be an eligible farm business; and\n    (g) in respect of succession loans provided directly to a farm business, at least one member of the farm business has the farm business as their principal business pursuit.\n  When a succession loan must not be granted\n  (2) The Corporation must not grant a loan under subsection (1) unless:\n    (a) it is satisfied of the matters set out in subsection (1); and\n    (b) the loan is made:\n    (i) to support farm business succession in respect of a farm business that is engaged solely or mainly in producing commodities for constitutional trade or commerce; or\n    (ia) to support farm asset succession in respect of a farm business in which a farm asset successor holds the sole or a controlling interest, and that is engaged solely or mainly in producing commodities for constitutional trade or commerce; or\n    (ii) for the purpose of encouraging or promoting constitutional trade or commerce.\n\n#### 9 Grant of a first farmer loan\n\n  Eligibility requirements—first farmer loans\n  (1) Subject to subsection (2), the Corporation may grant a loan to a first farmer where the Corporation is satisfied that:\n    (aa) the loan is for one or more of the following purposes:\n    (i) purchasing the sole or a controlling interest in a farm business;\n    (ii) establishing a farm business in which the first farmer will hold the sole or a controlling interest;\n    (iii) developing a farm business that the first farmer has recently acquired or will acquire, being a farm business in which the first farmer holds or will hold the sole or a controlling interest;\n    (iv) developing a farm business that the first farmer has recently established or will establish, being a farm business in which the first farmer holds or will hold the sole or a controlling interest;\n    (v) developing a farm business that involves share farming or farm leasing (or both), being a farm business in which the first farmer holds the sole or a controlling interest; and\n\n> Note 1: A first farmer loan may be granted for one or more of the above purposes. The loan can be used to, among other things, purchase an interest in a farm business, acquire farm assets (including land, infrastructure, equipment and stock), refinance loans associated with a farm business, and cover farm costs (including operating expenses, costs associated with purchasing an interest in a farm business and costs associated with acquiring farm assets).\n\n> Note 2: Where the loan is granted for the purpose of developing a farm business that involves share farming or farm leasing (or both), the loan can be used to develop the farm business even if this results in the farm business no longer involving share farming or farm leasing.\n\n    (a) the first farmer has obtained or will obtain within a reasonable period a loan on commercial terms; and\n    (b) the first farmer is in financial need of a concessional loan; and\n    (c) the first farmer has the capacity to repay the loan; and\n    (d) the farm business will be an eligible farm business; and\n    (e) if subsection (1A) does not apply to the first farmer—the first farmer has not previously held the sole or a majority interest in a farm business other than a recently‑acquired or recently‑established farm business in respect of which the first farmer loan is sought; and\n    (f) the first farmer has at least three years of relevant on‑farm or equivalent experience; and\n    (g) the first farmer intends to have the farm business as their principal business pursuit.\n  (1A) For the purposes of paragraph 9(1)(e), this subsection applies to a first farmer who is seeking a first farmer loan if the first farmer:\n    (a) holds the sole or a majority interest in a farm business that involves share farming or farm leasing (or both); and\n    (b) has not previously held the sole or a majority interest in an estate in fee simple in land on which primary production aspects of a farm business were being undertaken.\n  When a first farmer loan must not be granted\n  (2) The Corporation must not grant a loan under subsection (1) unless:\n    (a) it is satisfied of the matters set out in subsection (1); and\n    (b) the loan is made:\n    (i) in respect of a farm business that is engaged solely or mainly in producing commodities for constitutional trade or commerce; or\n    (ii) for the purpose of encouraging or promoting constitutional trade or commerce.\n\n#### 10 Terms of agristarter loans\n\n  (1) Subject to subsections (2) and (3), the Corporation may set the terms and conditions upon which an agristarter loan is made.\n  Offering agristarter loans\n  (2) The maximum amount of an agristarter loan is the lesser of:\n    (a) the amount that would result in the recipient having 50 per cent of its total debt in Commonwealth funded concessional loans; or\n    (b) $2 million.\n  (3) The Corporation has discretion to set the terms and conditions upon which an agristarter loan is made, provided that the agristarter loan:\n    (aa) is, pursuant to its terms, to be applied:\n    (i) in the case of a succession loan—to support succession arrangements in respect of a farm business that is or will be an eligible farm business; and\n    (ii) in the case of a first farmer loan—to support the purchase, establishment or development of a farm business that is or will be an eligible farm business; and\n    (a) has an initial loan term of ten years; and\n    (b) has an initial interest‑only period of five years; and\n    (d) allows full or partial early repayment (of principal, interest or both, at the recipient’s discretion) at any time without penalty; and\n    (e) is backed by sufficient security.\n\n> Note: Part 2 of the Regional Investment Corporation Operating Mandate Direction 2018 deals with the interest rates applying to the loan.\n\n  Types of security the Corporation must consider\n  (5) For the purposes of paragraph (3)(e)—the Corporation must consider requiring security, including in the form of:\n    (a) a registered mortgage over land; or\n    (b) a registered mortgage over livestock; or\n    (c) a registered security interest in water rights.\n  Meaning of total debt\n  (6) For the purposes of paragraph (2)(a)—total debt means the total debt owed by the recipient in respect of the farm business, including:\n    (a) debt established on commercial terms, at commercial interest rates; and\n    (b) debt established under Commonwealth funded concessional loans,\n  but excluding debts which are not in respect of the farm business, such as personal, credit card and home loan debts.\n\n## Part 3—Administrative matters\n\n#### 11 Notice of decision to grant or refuse loan\n\n  The Corporation will ensure that applicants for agristarter loans are informed of the outcome of their loan application as soon as practicable after a decision on their application has been made.\n\n#### 12 Loan management\n\n  (1) The Corporation must undertake all aspects of its loan management in a prudential manner to minimise the risk of default.\n  (2) The Board must ensure that prudential and arrears management policies and procedures are developed and applied by the Corporation. The Board must ensure at all times that the loan management, arrears management, recovery action, foreclosure arrangements, waiver of debt, write‑offs and dispute/complaints handling are undertaken in accordance with those policies and procedures.\n  (3) In developing its policies and procedures in relation to loan management activities, the Corporation is expected to have regard to the concessional nature of loans and consider the impact on the farm business of any proposed action in relation to the loan. The Corporation must offer, and undertake where required, farm debt mediation.\n  (4) The Corporation may take loan recovery and foreclosure action. Where possible, decisions on foreclosure should be made by the Board, and not by a delegate.\n  (5) The Corporation may waive an unpaid loan debt, in accordance with its arrears management policies and procedures. Before waiving any unpaid loan debt, the Corporation must consult with, and take into account the views of, the responsible Ministers. Where possible, a decision to waive an unpaid loan debt should be made by the Board, and not by a delegate.\n  (6) The Corporation will offer and promote refinancing to eligible farm businesses under the program. This may include debt from other concessional loan programs.\n\n#### 13 Internal review\n\n  (1) The Board must ensure that an internal review procedure for decisions to grant or refuse loans is developed and applied by the Corporation.\n  (2) The internal review procedure is required to be transparent, robust and fair. Specifically, the internal review procedure:\n    (a) will require the internal review to be carried out by a person who was not the primary decision‑maker in the original decision;\n    (b) will require the decision on the internal review to be made by an officer within the Corporation who was not the primary decision‑maker in the original decision (who may be the same person referred to in paragraph (a)); and\n    (c) must be consistent with principles of procedural fairness.\n\n#### 14 Corporation must publish program guidelines\n\n  (1) The Corporation must develop and publish written guidelines relating to the program (the program guidelines).\n  (1A) The program guidelines must be developed in consultation with the responsible Ministers.\n  (2) Without limiting subsection (1), the program guidelines must:\n    (aa) specify the uses to which agristarter loans can be applied, consistently with this rule and having regard to the purpose of the program; and\n    (a) include details of the right to request an internal review of application decisions and the process for requesting such a review; and\n    (b) contain information about the types of security the Corporation will consider accepting in relation to a loan; and\n    (c) specify when the Corporation will consider a person to be an Australian citizen or permanent resident within the meaning of paragraph 7(1)(a).\n\n#### 15 Corporation must report to responsible Ministers\n\n  (1) The Corporation must provide a report to the responsible Ministers as at the end of every March, June, September and December in respect of the program. The report is to include information regarding the uptake of loans, details of the loan portfolio, financial performance information and any other matters requested by the responsible Ministers.\n  (2) The Corporation is expected to proactively advise the Commonwealth on matters that will improve the operation and policy outcomes of loans.\n\n> Note: In this instrument, a reference to a loan is a reference to an agristarter loan under this program (see section 4).\n\n#### 16 Responsible Ministers may give written directions\n\n  For the purposes of subparagraph 8(5)(b)(iii) of the Act, to the extent that the responsible Ministers cannot otherwise give directions to the Corporation under section 11 of the Act, the responsible Ministers may give written directions to the Corporation in relation to the program.\n\n## Part 4—Financial matters\n\n#### 17 Corporation may charge transaction costs\n\n  For the purposes of subparagraph 8(5)(b)(i) of the Act, the Corporation may charge a recipient for transaction costs incurred by the Corporation in relation to an agristarter loan.\n\n#### 18 Funding arrangements\n\n  (1) Funds for loans will be provided to the Corporation upon the Corporation’s request to enable the Corporation to advance loan funds to recipients as required.\n  (2) The Corporation must:\n    (a) only request funds as they are required to advance loan funds to recipients; and\n    (b) only use funds provided for loans for that purpose.\n  (3) The Corporation is authorised to collect all loan repayments (including principal repayments and payments of interest) and transaction costs from loan recipients.\n  (4) All loan repayments (including principal repayments and payments of interest) received by the Corporation from loan recipients must be paid to the Commonwealth as soon as reasonably practicable.\n  (5) Any funds received by the Corporation from farm businesses under section 17 to reimburse the Corporation for transaction costs may be retained by the Corporation and do not need to be paid to the Commonwealth.\n\n## Part 5—Application, saving and transitional provisions\n\n#### 19 Regional Investment Corporation Legislation Amendment (Interest Rates) Instrument 2026—application provision\n\n  The amendments of this instrument made by Part 2 of Schedule 1 to the Regional Investment Corporation Legislation Amendment (Interest Rates) Instrument 2026 apply in relation to the 6‑month period beginning on 1 February 2026 and each later 6‑month period.","sortOrder":18},{"sectionNumber":"17","sectionType":"section","heading":"Corporation may charge transaction costs","content":"#### 17 Corporation may charge transaction costs\n\n  For the purposes of subparagraph 8(5)(b)(i) of the Act, the Corporation may charge a recipient for transaction costs incurred by the Corporation in relation to an agristarter loan.","sortOrder":19},{"sectionNumber":"18","sectionType":"section","heading":"Funding arrangements","content":"#### 18 Funding arrangements\n\n  (1) Funds for loans will be provided to the Corporation upon the Corporation’s request to enable the Corporation to advance loan funds to recipients as required.\n  (2) The Corporation must:\n    (a) only request funds as they are required to advance loan funds to recipients; and\n    (b) only use funds provided for loans for that purpose.\n  (3) The Corporation is authorised to collect all loan repayments (including principal repayments and payments of interest) and transaction costs from loan recipients.\n  (4) All loan repayments (including principal repayments and payments of interest) received by the Corporation from loan recipients must be paid to the Commonwealth as soon as reasonably practicable.\n  (5) Any funds received by the Corporation from farm businesses under section 17 to reimburse the Corporation for transaction costs may be retained by the Corporation and do not need to be paid to the Commonwealth.","sortOrder":20},{"sectionNumber":"Part 5","sectionType":"part","heading":"Application, saving and transitional provisions","content":"## Part 5—Application, saving and transitional provisions","sortOrder":21},{"sectionNumber":"19","sectionType":"section","heading":"Regional Investment Corporation Legislation Amendment (Interest Rates) Instrument 2026—application provision","content":"#### 19 Regional Investment Corporation Legislation Amendment (Interest Rates) Instrument 2026—application provision\n\n  The amendments of this instrument made by Part 2 of Schedule 1 to the Regional Investment Corporation Legislation Amendment (Interest Rates) Instrument 2026 apply in relation to the 6‑month period beginning on 1 February 2026 and each later 6‑month period.","sortOrder":22}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":5,"scope_assessment":{"changed":false,"description":"The legislation appears consistent with its original purpose of establishing the Agristarter Loans Program. The 2026 amendment provision (section 19) regarding interest rates represents a technical update rather than scope expansion."},"complexity_factors":["Multiple defined terms (12+ in section 4 alone, plus references to parent Act definitions)","Nested eligibility conditions with cross-references between sections 7, 8, and 9","Dual loan streams (first farmer vs succession) with overlapping but distinct requirements","Constitutional trade or commerce limitations creating conditional operation","Complex financial calculations for loan caps (50% debt ratio rule in section 10)","Exception to exception structure in section 9(1A) for share farmers","Multiple entity types covered (sole traders, partnerships, trusts, corporations) with different membership rules"],"plain_english_summary":"The Agristarter Loans Program creates government‑backed, concessional loans (up to $2 million, with staged terms) to help first farmers and family farm successors buy, start, develop or transfer farm businesses and refinance farm debt. It’s aimed at Australians ready to run a viable farm as their main occupation.\n\nBy lowering entry and succession barriers, the program supports rural continuity and agricultural viability while imposing eligibility checks, commercial co‑finance, security over farm assets, and careful default/mediation processes."},"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":false,"description":"This Rule prescribes and operationalises the Agristarter Loans Program set out under the Regional Investment Corporation Act 2018. The text primarily establishes eligibility, terms, administrative procedures and funding mechanics consistent with that statutory purpose. The only explicit later amendment referenced (section 19) controls the temporal application of interest‑rate amendments made by a separate 2026 instrument; that changes operational application of interest rates but does not broaden who may receive loans, the purposes for which loans may be made, or the core eligibility framework. Accordingly, the program’s substantive scope (who is targeted and for what purpose) has not been expanded beyond its original design in this instrument."},"complexity_factors":["Multiple defined terms in section 4 (approx. a dozen key definitions such as first farmer, farm business successor, agristarter loan, eligible farm business).","Eligibility rules split across two loan types (succession loans in s8 and first farmer loans in s9) with layered conditions and cross‑references (experience, principal business pursuit, financial need, commercial loan availability).","Mandatory ‘must not grant’ constraints tied to constitutional trade/commerce tests (s8(2) and s9(2)), adding legal boundary conditions and interpretation risk. ","Loan cap formula uses an internally defined concept ‘total debt’ and a proportional rule (lesser of $2m or amount producing 50% concessional share) (s10(2) and s10(6)).","Multiple discretionary elements: Corporation sets terms within constraints (s10(1),(3)); Board discretion on foreclosure and waivers (s12(4)–(5)); Ministers’ power to direct (s16).","Operational requirements and procedures to be developed and published (program guidelines, internal review process, prudential policies), increasing administrative detail and potential variability (s12–15).","Cross‑references to other instruments and Acts (Regional Investment Corporation Act 2018, Operating Mandate Direction 2018 for interest rates, and the later Interest Rates Instrument 2026 amendment in s19).","Transitional/application provision for 2026 interest rate instrument applying on recurring 6‑month periods (s19) introduces recurring temporal condition to interest rate application."],"plain_english_summary":"**What this Rule does (mechanically)**\n\n- Prescribes the Agristarter Loans Program administered by the Regional Investment Corporation (the Corporation) and sets the legal rules for who can apply, what loans can be made, how they are to be managed, and how the program is funded (sections 5, 6, 8–10, 14, 17–18).\n- Defines key terms used in the Rule (for example, first farmer, farm business successor, farm asset successor, eligible farm business, agristarter loan) so that eligibility tests and other requirements are specific (section 4).\n- Creates two loan types:\n  - Succession loans to support farm succession arrangements (section 8).\n  - First farmer loans to help new operators buy, establish or develop a farm business (section 9).\n- Sets eligibility conditions and mandatory limits. Loans may only be made where the Corporation is satisfied of a list of conditions (capacity to repay, financial need for concessional lending, commercial lending being or becoming available, the business being or becoming an eligible farm business, and other experience/principal-pursuit tests) (sections 7–9).\n- Caps loan size at the lesser of $2 million or the amount that would cause a recipient’s Commonwealth-funded concessional debt to be 50% of total farm-business debt (section 10(2)).\n- Provides standard contractual features: 10‑year initial term, a 5‑year initial interest‑only period, ability to make early repayments without penalty, and requirement that loans be backed by “sufficient security” (section 10(3)–(5)).\n- Requires the Corporation to develop and publish program guidelines (developed in consultation with responsible Ministers) and to operate prudentially (sections 12, 14). The guidelines must state permitted uses of loan funds, securities it will consider, and internal review procedures (section 14).\n- Establishes administrative controls: internal review of decisions, reporting to responsible Ministers every quarter, ability for responsible Ministers to give written directions about the program, and transactional charging/collection and funding mechanics (sections 11, 13–16, 17–18).\n- Includes an application (transitional) clause that ties amendments made by an Interest Rates Instrument (2026) to six‑month application periods (section 19).\n\n**Who this affects**\n\n- Potential recipients: first farmers (people seeking sole/controlling ownership of a farm business), farm businesses, farm business successors, and farm asset successors who meet the eligibility criteria (section 4; sections 7–9).\n- The Commonwealth (through the Corporation and responsible Ministers) because the Commonwealth supplies funds for loans, receives repayments, and is involved in oversight and occasional direction (sections 15, 17–18, 16).\n- Private lenders and other concessional lenders: the Rule requires applicants to have (or expect to obtain) commercial finance and limits the share of concessional Commonwealth debt (section 9(1)(a); section 10(2)). That creates an interface with private lending markets.\n\n**Why it matters (practical effects and mechanics)**\n\n- Access and timing: The Rule creates a formal path for targeted concessional loans with defined terms (10‑year term, 5‑year interest‑only). That alters cash‑flow profiles for approved borrowers (s10(3)(a)–(b)).\n- Concentrated benefits: Financial advantage (concessional interest/term) goes to successful applicants who meet specific criteria—benefits are concentrated on those recipients (s8–9, s10). Costs (funding the concessional element, and any write‑offs) fall on the Commonwealth (s18(4)).\n- Limits to subsidy and an incentive to use commercial finance: the cap (50% of total farm‑business debt or $2m) limits the extent to which recipients can rely on concessional Commonwealth debt and encourages respondents to source commercial capital alongside concessional loans (s10(2)).\n- Succession and ownership effects: the program conditions (experience, principal business pursuit, succession planning) explicitly aim to shape who runs farms after succession or entry—these are administrative tests the Corporation applies to lending decisions (s8(1)(e)–(f); s9(1)(f)–(g)).\n- Security and asset use: the Corporation may require security such as registered mortgages over land or livestock and security interests in water rights; that affects how farm assets can be used or re‑encumbered (s10(5)).\n- Administrative and compliance costs: applicants must complete written applications and provide documents, and the Corporation must develop guidelines, run internal review procedures, monitor prudentially and report quarterly to Ministers—those are explicit compliance and administrative obligations (s6, s12–15).\n\n**Trade‑offs, incentives and implementation risks (how the Rule shapes behaviour and where risks lie)**\n\n- Incentives to apply for concessional finance: by offering concessional terms while requiring evidence of commercial finance being available and a limit on concessional share, the Rule seeks to blend public and private finance. That creates a substitution effect (some applicants will replace more costly commercial finance with cheaper Commonwealth finance, up to the cap) (s9(1)(a); s10(2)).\n- Moral hazard and repayment assessments: concessional terms and an initial interest‑only period reduce immediate cash pressure on borrowers but increase the need for robust assessment of capacity to repay and loan management to limit default risk. The Board must adopt prudential arrears and recovery policies, and waivers of debt require consultation with Ministers (s12(1)–(5)).\n- Concentration of decision power and discretion: while the Corporation and its Board make eligibility and recovery decisions, Ministers can give written directions about the program (s16), and the Corporation has discretion over loan terms within the stated constraints (s10(1), (3)). That creates some operational flexibility but also political oversight.\n- Administrative burden and potential delays: the Rule requires the Corporation to publish guidelines (in consultation with Ministers), run internal reviews and report quarterly—each step adds process time and resourcing requirements (s13–15).\n- Potential crowding‑out of private lenders in targeted cases: because the program directly reduces financing costs for approved borrowers, local banks or non‑bank lenders may find less business in segments where eligible applicants prefer Agristarter loans—although the 50% concessional cap and the ‘commercial loan obtained or will obtain’ condition limit this effect (s9(1)(a); s10(2)).\n- Limited program scope tied to trade/commerce: loans must relate to farm businesses producing commodities for constitutional trade or commerce or be for the purpose of encouraging or promoting that trade (s8(2), s9(2)). That places a constitutional (legal) boundary on program eligibility.\n\n**Key sections to check when using the Rule**\n\n- Definitions and who counts as a ‘‘first farmer’’ or ‘‘successor’’: section 4.\n- Eligibility and prohibited grants: sections 7–9.\n- Loan caps and terms: section 10 (including security types in s10(5)).\n- Loan management, waivers and Board responsibilities: section 12.\n- Program guidelines, internal review and reporting: sections 13–15.\n- Ministers’ directions and funding/repayment mechanics: sections 16 and 18.\n- Transaction charges the Corporation may levy: section 17.\n\n(References in parentheses are to the Rule’s section numbers.)"},"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"}},"importantCases":[],"_links":{"self":"/api/acts/regional-investment-corporation-agristarter-loans-rule-2019","history":"/api/acts/regional-investment-corporation-agristarter-loans-rule-2019/history","analysis":"/api/acts/regional-investment-corporation-agristarter-loans-rule-2019/analysis","conflicts":"/api/acts/regional-investment-corporation-agristarter-loans-rule-2019/conflicts","importantCases":"/api/acts/regional-investment-corporation-agristarter-loans-rule-2019/important-cases","documents":"/api/acts/regional-investment-corporation-agristarter-loans-rule-2019/documents"}}