{"id":"F2018L00778","name":"Regional Investment Corporation Operating Mandate Direction 2018","slug":"regional-investment-corporation-operating-mandate-direction-2018","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":97418,"registerId":"commonwealth-F2018L00778-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Regional Investment Corporation Operating Mandate Direction 2018","content":"![Commonwealth Coat of Arms of Australia](image.001.png)\n\nRegional Investment Corporation Operating Mandate Direction 2018\n\nmade under subsection 11(1) of the\n\nRegional Investment Corporation Act 2018\n\nCompilation No. 7\n\nCompilation date: 28 January 2026\n\nIncludes amendments: F2026L00049\n\nAbout this compilation\n\nThis compilation\n\nThis is a compilation of the Regional Investment Corporation Operating Mandate Direction 2018 that shows the text of the law as amended and in force on 28 January 2026 (the compilation date).\n\nThe notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.\n\nUncommenced amendments\n\nThe effect of uncommenced amendments is not shown in the text of the compiled law. The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au).\n\nApplication, saving and transitional provisions\n\nIf the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.\n\nEditorial changes\n\nFor more information about any editorial changes made in this compilation, see the endnotes.\n\nPresentational changes\n\nThe Legislation Act 2003 provides for First Parliamentary Counsel to make presentational changes to a compilation. Presentational changes are applied to give a more consistent look and feel to legislation published on the Register, and enable the user to more easily navigate those documents.\n\nModifications\n\nIf the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. Any modifications affecting the law are accessible on the Register.\n\nSelf‑repealing provisions\n\nIf a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.\n\nPart 1—Preliminary\n\n1. Name of Instrument\n\nThis instrument is the Regional Investment Corporation Operating Mandate Direction 2018.\n\n2. Authority\n\nThis instrument is made under subsection 11(1) of the Regional Investment Corporation Act 2018.\n\n4. Definitions\n\n> Note: A number of expressions used in this document are defined in the Act, including the following:\n\n    (a) Agriculture Minister;\n    (b) Board;\n    (c) Corporation;\n    (d) Desertification Convention;\n    (e) farm business loan;\n    (f) responsible Ministers.\n\nIn this instrument:\n\nAct means the Regional Investment Corporation Act 2018.\n\nAgriculture Department means the Department administered by the Agriculture Minister.\n\nCommonwealth borrowing costs component has the meaning given by section 4A.\n\nCorporation administrative costs component has the meaning given by section 4A.\n\ndrought loan means a farm business concessional loan that helps a farm business to prepare for, manage through and recover from periods of drought.\n\nfarm business concessional loan means a farm business loan offered under the farm business concessional loan program.\n\nfarm business concessional loan program means the farm business concessional loan program described in Schedule 1 to be administered by the Corporation in accordance with this instrument.\n\nPart 2—Interest rates on loans\n\n4A Interest rates on farm business loans\n\n(1) The Corporation must set, and adjust as required, the interest rates on all farm business loans in accordance with this section.\n\n(2) The interest rate for a period is the sum of the following components for that period:\n\n(a) the Commonwealth borrowing costs component;\n\n(b) the Corporation administrative costs component.\n\nCommonwealth borrowing costs component for period 1 February to 31 July\n\n(3) The Commonwealth borrowing costs component, for a 6‑month period (the relevant period) beginning on a 1 February, is worked out as follows:\n\nMethod statement\n\nStep 1. Work out the average of the daily 10‑year Australian Government bond rate for the most recent 6‑month period beginning on 1 May (with the average worked out to 2 decimal places, rounding up if the third decimal place is 5 or more).\n\nStep 2. Compare that average with the Commonwealth borrowing costs component for the most recent 6‑month period beginning on 1 August.\n\nStep 3. If there is a more than 0.1% difference between that average and the Commonwealth borrowing costs component for the most recent 6‑month period beginning on 1 August, the Commonwealth borrowing costs component, for the relevant period, is that average.\n\nStep 4. If there is not a more than 0.1% difference between that average and the Commonwealth borrowing costs component for the most recent 6‑month period beginning on 1 August, the Commonwealth borrowing costs component, for the relevant period, remains the Commonwealth borrowing costs component referred to in step 2.\n\nCommonwealth borrowing costs component for period 1 August to 31 January\n\n(4) The Commonwealth borrowing costs component, for a 6‑month period (the relevant period) beginning on a 1 August, is worked out as follows:\n\nMethod statement\n\nStep 1. Work out the average of the daily 10‑year Australian Government bond rate for the most recent 6‑month period beginning on 1 November (with the average worked out to 2 decimal places, rounding up if the third decimal place is 5 or more).\n\nStep 2. Compare that average with the Commonwealth borrowing costs component for the most recent 6‑month period beginning on 1 February.\n\nStep 3. If there is a more than 0.1% difference between that average and the Commonwealth borrowing costs component for the most recent 6‑month period beginning on 1 February, the Commonwealth borrowing costs component, for the relevant period, is that average.\n\nStep 4. If there is not a more than 0.1% difference between that average and the Commonwealth borrowing costs component for the most recent 6‑month period beginning on 1 February, the Commonwealth borrowing costs component, for the relevant period, remains the Commonwealth borrowing costs component referred to in step 2.\n\nCorporation administrative costs component for period 1 February to 31 July\n\n(5) The Corporation administrative costs component, for a 6‑month period beginning on a 1 February, is, subject to a direction under section 12 of the Act in relation to that period, the Corporation administrative costs component for the most recent 6‑month period beginning on 1 August.\n\nCorporation administrative costs component for period 1 August to 31 January\n\n(6) The Corporation administrative costs component, for a 6‑month period beginning on a 1 August, is, subject to a direction under section 12 of the Act in relation to that period, the Corporation administrative costs component for the most recent 6‑month period beginning on 1 February.\n\n4B Interest rates on other loans\n\nThe Corporation must ensure that the interest rates on all loans made under programs prescribed by the rules for the purposes of paragraph 8(1)(g) of the Act are the interest rates applicable to farm business loans under section 4A of this instrument.\n\nPart 3—Other directions\n\n5. Introduction\n\n(1) The Corporation will administer farm business loans. It will provide streamlined and nationally consistent Commonwealth concessional finance supporting regional Australia.\n\n(2) The Corporation will undertake its functions in an efficient and effective manner to meet its policy objectives. It will treat clients fairly and equitably providing a nationally consistent service.\n\n(3) The Corporation will assist the Commonwealth in effectively responding to the needs of Australian farm businesses and regional communities, and supporting the growth of regional economies across Australia.\n\n6. Policy objectives\n\n(1) In establishing the Corporation, the Commonwealth is providing practical support to help rural and regional communities achieve economic growth and agricultural productivity.\n\nFarm business loans\n\n(2) The farm business loans will provide low cost finance to farm businesses that are in financial need of assistance, to recover from short‑term hardship, but are assessed as financially viable over the long‑term and able to repay.\n\n(3) The Corporation will deliver farm business loans that will:\n\n(a) support the long‑term strength, resilience and profitability of Australian farm businesses by helping them to build and maintain diversity in the markets they supply, and take advantage of new and emerging opportunities across Australia and overseas; or\n\n(b) assist farm businesses to prepare for, manage through and recover from periods of drought.\n\n(5) The full policy objectives of the farm business concessional loan program are detailed in Schedule 1.\n\n7. Funding arrangements\n\n(1) The Corporation will be funded by an appropriation through an Act of Parliament.\n\nFarm business loan funds\n\n(2) Funds for farm business loans will be provided to the Corporation upon the Corporation’s request to enable the Corporation to advance loan funds to recipients as required. The Corporation must:\n\n(a) only request funds as they are required to advance loan funds to recipients;\n\n(b) only use funds provided for farm business loans for that purpose.\n\n(3) The Corporation is authorised to collect all loan repayments (including principal repayments and payments of interest) from farm business loan recipients.\n\n(4) Subject to subsection 7(5) below, all loan repayments (including principal repayments and payments of interest) received by the Corporation from farm business loan recipients must be paid to the Commonwealth as soon as reasonably practicable.\n\n(5) Any funds received by the Corporation from farm businesses under section 47 of the Act to reimburse costs the Corporation has incurred in relation to the farm business loan may be retained by the Corporation and do not need to be paid to the Commonwealth.\n\nAdministrative expenses\n\n(8) Funds provided to the Corporation for administrative expenses must only be used for that purpose.\n\n9. Farm business loans\n\nProgram guidelines\n\n(1) The Corporation must develop and publish guidelines for each program of farm business loans consistent with this instrument and in consultation with the responsible Ministers.\n\nOffering farm business loans\n\n(2) The Corporation is to administer the farm business concessional loan program. The Corporation can only offer farm business loans under the farm business concessional loan program in accordance with the specifications set out in Schedule 1.\n\n(3) In administering the farm business concessional loan program, the Corporation must be satisfied that an applicant fulfils the mandatory requirements set out in Schedule 1 before the Corporation offers that applicant a farm business loan.\n\n(4) The Corporation will offer and promote refinancing to eligible farm businesses under the farm business concessional loan program. This may include debt from previous concessional loan programs.\n\n(5) For each program of farm business loans that the Corporation administers, the Corporation should be mindful that the Commonwealth is not seeking to impede appropriate structural adjustment nor be the lender of last resort to the farming sector. To this end, the Corporation should not provide loans to applicants who have intentionally pursued high risk strategies and practices without adequately assessing risks and seeking to mitigate them where possible.\n\n(6) The Corporation will ensure that farm business loan applicants are informed of the outcome of their loan application as soon as practicable after a decision on their application has been made.\n\n11. 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\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 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\nFarm business loans\n\n(3) In developing its policies and procedures in relation to farm business loan management activities, the Corporation is expected to have regard to the concessional nature of the farm business loans and consider the impact on the farm business of any proposed action in relation to the farm business loan. The Corporation must offer, and undertake where required, farm debt mediation.\n\n(4) The Corporation may take farm business loan recovery and foreclosure action. Any decision on foreclosure of a farm business loan must be made by the Board and cannot be delegated.\n\n(5) The Corporation may waive an unpaid farm business loan debt, in accordance with its arrears management policies and procedures. Before waiving any unpaid farm business loan debt, the Corporation must consult with, and take into account the views of the responsible Ministers. Any decision to waive an unpaid farm business loan debt must be made by the Board and cannot be delegated.\n\n12. Internal review\n\n(1) The Board must ensure that an internal review procedure for decisions to grant or refuse farm business loans is developed and applied by the Corporation.\n\n(2) The internal review procedure is required to be transparent, robust and fair. Specifically the internal review procedure:\n\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\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\n(c) must be consistent with principles of procedural fairness.\n\n(3) The Corporation must include details of the right to request an internal review of application decisions and the process for requesting such a review in the farm business loan guidelines.\n\n13. Service provision\n\nThe Corporation is expected to develop and implement service level standards to ensure the Corporation and any external service provider contracted by the Corporation to deliver services on its behalf, treat applicants and stakeholders in a fair, transparent and timely manner. These standards should be developed in accordance with benchmarked best practice standards.\n\n14. Support from responsible Ministers\n\nThe Corporation must consider, and use as appropriate, the support made available by responsible Ministers to assist in its establishment. The Commonwealth, through the Agriculture Department, will provide guidance and options including to establish organisational structures, logistical arrangements and corporate and operational policies, as well as draft program guidelines and documentation to assist with procurement processes.\n\n15. Communication and stakeholder engagement\n\n(1) For farm business loans the Corporation must undertake ongoing engagement with relevant industry stakeholders to ensure loan products offered can respond to issues as they emerge. The Corporation will undertake communication activities to promote the Corporation and manage and drive demand of programs, ensuring in‑need eligible farm businesses are aware of, and have ready access to, concessional finance.\n\n(3) The Corporation must also work flexibly and constructively with Commonwealth entities to ensure the implementation and ongoing administration of farm business loans are undertaken in a manner that is consistent with broader government policy and supports timely responses to emerging issues and/or industry‑specific crises.\n\n16. Reporting\n\n(1) The Corporation must provide a farm business loan report to the responsible Ministers as at the end of every March, June, September and December in respect of each farm business loan program it administers. The farm business loan report is to include information regarding the uptake of loans for each program, details of the loan portfolio, financial performance information and any other matters requested by the responsible Ministers.\n\n(3) The Corporation must provide any additional information requested to either responsible Minister as and when requested.\n\n17. Other advice\n\n(1) The Corporation is expected to proactively advise the Commonwealth on matters that will improve the operation and policy outcomes of farm business loans.\n\n(2) The Corporation will keep abreast of ongoing and emerging agricultural industry issues to manage demand for finance and ensure assistance is reaching eligible farm businesses that are most in need.\n\n(4) On request, the Corporation will provide advice to responsible Ministers on the application of this instrument to an emerging issue or industry crisis, including how, where appropriate, the Corporation can respond.\n\n18. Corporate Governance\n\nThe Corporation is expected to have regard to principles of best practice in determining its approach to corporate governance principles, including environmental, social and governance issues.\n\n19. Reputation\n\nThe Corporation must not act in a way that is likely to cause damage to the Commonwealth’s reputation.\n\nPart 4—Application, saving and transitional provisions\n\n20 Regional Investment Corporation Operating Mandate Amendment (Drought Loans—Interest‑free Period) Direction 2019—transitional and application provisions\n\nDefinitions\n\n(1) In this section:\n\namendment means the amendment of Schedule 1 made by the Regional Investment Corporation Operating Mandate Amendment (Drought Loans— Interest‑free Period) Direction 2019.\n\ncommencement means the commencement of the Regional Investment Corporation Operating Mandate Amendment (Drought Loans—Interest‑free Period) Direction 2019.\n\nDrought loans offered after commencement\n\n(2) The amendment applies in relation to a drought loan offered by the Corporation after commencement.\n\nDrought loans offered before commencement but not yet drawn down\n\n(3) Subject to subsection (5), if a drought loan was offered to a farm business at any time before commencement, but the loan had not been drawn down immediately before commencement:\n\n(a) the amendment applies in relation to the loan; and\n\n(b) despite the actual terms and conditions of the offer, the loan is taken to have been offered on the basis of an initial interest‑free period of 2 years, followed by an interest‑only period of 3 years; and\n\n(c) the Corporation must give a written notice to the farm business stating the effects of this subsection and subsection (5) in relation to the particular circumstances of the loan.\n\nNote: Paragraph (b) does not affect the terms of the offer as they apply in relation to the period of the loan remaining after the end of the interest‑only period mentioned in that paragraph.\n\nDrought loans drawn down before commencement\n\n(4) Subject to subsection (5), if a drought loan was drawn down by a farm business at any time before commencement:\n\n(a) in relation to the 5‑year period starting on the day the loan was drawn down, despite the actual terms and conditions of the loan, the loan is taken to have been made upon the basis of the following terms:\n\n(i) an interest‑only period starting on the day the loan was drawn down and ending on 31 December 2019;\n\n(ii) an interest‑free period starting on 1 January 2020 and ending on 31 December 2021;\n\n(iii) an interest‑only period for the remainder of that 5‑year period; and\n\n(b) the Corporation must give a written notice to the farm business stating the effects of this subsection and subsection (5) in relation to the particular circumstances of the loan.\n\nNote: Paragraph (a) does not affect the terms of the loan as they apply in relation to the period of the loan remaining after the end of the 5‑year period mentioned in that paragraph.\n\nElection for amendment not to apply\n\n(5) If a farm business to which a drought loan has, before commencement, been offered or made gives a written notice to the Corporation before 1 January 2020 electing not to be covered by subsection (3) or (4):\n\n(a) the amendment does not apply in relation to the offer or the loan (as the case may be); and\n\n(b) the farm business is not covered by subsection (3) or (4) (as the case may be).\n\n21 Regional Investment Corporation (Drought and Small Business Drought Loans)(Cessation of Interest‑Free Period) Amendment Instrument 2020—transitional and application provisions\n\n(1) In this section:\n\ncommencement day means 1 October 2020.\n\nNote: This is the day on which the instrument that made the relevant amendments commenced.\n\nrelevant amendments means the amendments to this Operating Mandate made by the Regional Investment Corporation (Drought and Small Business Drought Loans)(Cessation of Interest‑Free Period) Amendment Instrument 2020.\n\n(2) Where an application for a drought loan was made before the commencement day, this Operating Mandate applies in relation to the application and any loan offered on the basis of the application as if the relevant amendments had not been made.\n\n22 Regional Investment Corporation Legislation Amendment (Interest Rates) Instrument 2025—application provision\n\nThe amendments made by Part 1 of Schedule 1 to the Regional Investment Corporation Legislation Amendment (Interest Rates) Instrument 2025 apply to the setting of interest rates as mentioned in section 8 after the day on which this section commences.\n\n23 Regional Investment Corporation Legislation Amendment (Interest Rates) Instrument 2026—application and transitional provisions\n\n(1) Sections 4A and 4B, as inserted by Part 1 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.\n\n(2) For the purposes of section 4A:\n\n(a) the Commonwealth borrowing costs component, for the 6‑month period beginning on 1 February 2026, is taken to be 4.28%; and\n\n(b) the Corporation administrative costs component, for the 6‑month period beginning on 1 February 2026, is taken to be 0.9%.\n\nSCHEDULE 1 – FARM BUSINESS CONCESSIONAL LOAN PROGRAM\n\nPolicy objectives\n\nFarm business concessional loans seek to support the long‑term strength, resilience and profitability of Australian farm businesses by helping them to:\n\n(a) build and maintain diversity in the markets they supply and take advantage of new and emerging opportunities across Australia and overseas; or\n\n(b) prepare for, manage through and recover from periods of drought.\n\nLoan specifications\n\nOffering farm business concessional loans\n\nThe maximum amount of an applicant’s farm business concessional loan or loans is the lesser of:\n\n(a) an amount that would result in the farm business having 50 per cent of its total debt in Commonwealth funded concessional loans; or\n\n(b) $2 million in total.\n\nNote: ‘Total debt’ is the sum total of debt established on commercial terms, at commercial interest rates, plus all Commonwealth funded concessional loans provided to the farm business; and\n\n‘Commonwealth funded concessional loans’ includes the Commonwealth loans identified in the program guidelines.\n\nThe Corporation has discretion to set the terms and conditions upon which a farm business concessional loan is made, provided that the farm business concessional loan:\n\n(a) falls within the definition of a ‘farm business loan’ in the Act;\n\n(b) has an initial loan term of ten years;\n\n(c) has an initial interest‑only period of five years; and\n\n(d) allows full or partial early repayment (of principal and/or interest) at any time without penalty.\n\nLoan security and capacity to repay\n\nThe Corporation must not approve a farm business concessional loan application unless:\n\n(a) the farm business is assessed as having the capacity to repay the loan; and\n\n(b) sufficient security for the loan is provided by the farm business.\n\nThe Board has discretion to determine what security it requires for each farm business loan.\n\nThe Corporation must develop guidelines regarding the type of security that it will consider for a farm business concessional loan. The Corporation must consider at least the following types of security:\n\n(a) registered mortgage over land;\n\n(b) registered livestock mortgage; and\n\n(c) registered security interest in water rights.\n\nMandatory requirements\n\nEligibility\n\nA farm business will only be eligible for a farm business concessional loan if the loan falls within the definition of ‘farm business loan’ in the Act. Generally, eligible farm businesses will either:\n\n(a) solely or mainly supply, or intend to solely or mainly supply, products interstate or outside Australia; or\n\n(b) be located in an ‘affected area’ as defined in the Desertification Convention and have a drought management plan which outlines the activities the loan will be spent on.\n\nIn addition, eligible farm businesses are those:\n\n(a) who are in financial need of a concessional loan;\n\n(b) where at least one member of the farm business is an Australian citizen or a permanent resident as defined in the program guidelines;\n\n(c) that are assessed as financially viable, or as having sound prospects of a return to financial viability within the term of the concessional loan;\n\n(d) that have existing commercial debt and the support of their commercial lender to the proposed concessional loan;\n\n(e) that undertake all primary production aspects of the business wholly within Australia;\n\n(f) where at least one member:\n\ni. has experience operating a farm business; and\n\nii. has the farm business as their principal business pursuit (in terms of being where they contribute the majority of their labour and where they derive the majority of their income)\n\n(g) that operate as a sole trader, partnership, trust or private company;\n\n(h) that are registered for tax purposes in Australia with an Australian Business Number (ABN) and registered for GST; and\n\n(i) that are not under external administration or bankruptcy.\n\nApproved loan purpose\n\nBroadly, farm business concessional loans will be made available for debt restructuring, and new debt for operating expenses, productivity enhancements, drought preparedness, management and recovery activities, in line with the policy objectives of the program.\n\nSpecific eligible and non‑eligible loan purposes will be outlined in program guidelines.\n\n> Note: Endnotes\n\n> Note: Endnote 1—About the endnotes\n\nThe endnotes provide information about this compilation and the compiled law.\n\nThe following endnotes are included in every compilation:\n\nEndnote 1—About the endnotes\n\nEndnote 2—Abbreviation key\n\nEndnote 3—Legislation history\n\nEndnote 4—Amendment history\n\nAbbreviation key—Endnote 2\n\nThe abbreviation key sets out abbreviations that may be used in the endnotes.\n\nLegislation history and amendment history—Endnotes 3 and 4\n\nAmending laws are annotated in the legislation history and amendment history.\n\nThe legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.\n\nThe amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.\n\nEditorial changes\n\nThe Legislation Act 2003 authorises First Parliamentary Counsel to make editorial and presentational changes to a compiled law in preparing a compilation of the law for registration. The changes must not change the effect of the law. Editorial changes take effect from the compilation registration date.\n\nIf the compilation includes editorial changes, the endnotes include a brief outline of the changes in general terms. Full details of any changes can be obtained from the Office of Parliamentary Counsel.\n\nMisdescribed amendments\n\nA misdescribed amendment is an amendment that does not accurately describe how an amendment is to be made. If, despite the misdescription, the amendment can be given effect as intended, then the misdescribed amendment can be incorporated through an editorial change made under section 15V of the Legislation Act 2003.\n\nIf a misdescribed amendment cannot be given effect as intended, the amendment is not incorporated and “(md not incorp)” is added to the amendment history.\n\n> Note: Endnote 2—Abbreviation key\n\n| ad = added or inserted                         | orig = original                          |\n| ---------------------------------------------- | ---------------------------------------- |\n| am = amended                                   | p = page(s)                              |\n| amdt = amendment                               | para = paragraph(s)/subparagraph(s)      |\n| C[x] = Compilation No. x                       | /sub‑subparagraph(s)                     |\n| ch = Chapter(s)                                | pres = present                           |\n| cl = clause(s)                                 | prev = previous                          |\n| cont. = continued                              | (prev…) = previously                     |\n| def = definition(s)                            | pt = Part(s)                             |\n| Dict = Dictionary                              | r = regulation(s)/Court rule(s)          |\n| disallowed = disallowed by Parliament          | reloc = relocated                        |\n| div = Division(s)                              | renum = renumbered                       |\n| ed = editorial change                          | rep = repealed                           |\n| exp = expires/expired or ceases/ceased to have | rs = repealed and substituted            |\n| effect                                         | s = section(s)/subsection(s)             |\n| gaz = gazette                                  | /rule(s)/subrule(s)/order(s)/suborder(s) |\n| LA = Legislation Act 2003                      | sch = Schedule(s)                        |\n| LIA = Legislative Instruments Act 2003         | SLI = Select Legislative Instrument      |\n| (md) = misdescribed amendment can be given     | SR = Statutory Rules                     |\n| effect                                         | sub ch = Sub‑Chapter(s)                  |\n| (md not incorp) = misdescribed amendment       | sub div = Subdivision(s)                 |\n| cannot be given effect                         | sub pt = Subpart(s)                      |\n| mod = modified/modification                    | underlining = whole or part not          |\n| No. = Number(s)                                | commenced or to be commenced             |\n| Ord = Ordinance                                |                                          |\n\n> Note: Endnote 3—Legislation history\n\n| Name                                                                                                                                    | Registration               | Commencement                                    | Application, saving and transitional provisions |\n| --------------------------------------------------------------------------------------------------------------------------------------- | -------------------------- | ----------------------------------------------- | ----------------------------------------------- |\n| Regional Investment Corporation Operating Mandate Direction 2018                                                                        | 15 June 2018 (F2018L00778) | 16 June 2018 (s 3)                              |                                                 |\n| Regional Investment Corporation Operating Mandate (Amendment) Direction 2018                                                            | 14 Sept 2018 (F2018L01293) | 15 Sept 2018 (s 3)                              | —                                               |\n| Regional Investment Corporation Operating Mandate (Amendment) Direction 2019                                                            | 28 Mar 2019 (F2019L00434)  | 29 Mar 2019 (s 3)                               | —                                               |\n| Regional Investment Corporation Operating Mandate Amendment (Drought Loans—Interest‑free Period) Direction 2019                         | 20 Nov 2019 (F2019L01483)  | 21 Nov 2019 (s 2(1) item 1)                     | —                                               |\n| Regional Investment Corporation (Drought and Small Business Drought Loans)(Cessation of Interest‑Free Period) Amendment Instrument 2020 | 23 Sept 2020 (F2020L01201) | sch 1 (items 1, 2): 1 Oct 2020 (s 2)            | —                                               |\n| Regional Investment Corporation Operating Mandate Amendment (National Water Infrastructure Loan Facility) Directions 2020               | 23 Dec 2020 (F2020L01707)  | 24 Dec 2020 (s 2(1) item 1)                     | —                                               |\n| Regional Investment Corporation Legislation Amendment (Interest Rates) Instrument 2025                                                  | 30 July 2025 (F2025L00890) | sch 1 (items 1‑8): 30 July 2025 (s 2(1) item 1) | —                                               |\n| Regional Investment Corporation Legislation Amendment (Interest Rates) Instrument 2026                                                  | 28 Jan 2026 (F2026L00049)  | sch 1 (items 1-7): 28 Jan 2026 (s 2(1) item 1)  | —                                               |\n\n> Note: Endnote 4—Amendment history\n\n| Provision affected           | How affected                             |\n| ---------------------------- | ---------------------------------------- |\n| Part 1                       |                                          |\n| Part 1 heading.............  | rs F2026L00049                           |\n| s 1.....................     | am F2020L01707                           |\n| s 2.....................     | am F2020L01707                           |\n| s 3.....................     | rep LA s 48D                             |\n| s 4.....................     | am F2019L01483                           |\n|                              | rs F2020L01707                           |\n|                              | am F2026L00049                           |\n| Part 2                       |                                          |\n| Part 2...................    | ad F2026L00049                           |\n| s 4A....................     | ad F2026L00049                           |\n| s 4B....................     | ad F2026L00049                           |\n| Part 3                       |                                          |\n| Part 3 heading.............  | ad F2026L00049                           |\n| Part 2 heading.............  | rep F2026L00049                          |\n| s 5.....................     | am F2020L01707                           |\n| s 6.....................     | am F2020L01707                           |\n| s 7.....................     | am F2020L01707                           |\n| s 8.....................     | am F2020L01707; F2025L00890              |\n|                              | rep F2026L00049                          |\n| s 9.....................     | am F2020L01707                           |\n| s 10....................     | rep F2020L01707                          |\n| s 11....................     | am F2020L01707                           |\n| s 14....................     | am F2020L01707                           |\n| s 15....................     | am F2020L01707                           |\n| s 16....................     | am F2020L01707                           |\n| s 17....................     | am F2020L01707                           |\n| Part 4                       |                                          |\n| Part 4 heading.............  | ad F2026L00049                           |\n| Part 3 heading.............  | rep F2026L00049                          |\n| Part 3...................    | ad F2019L01483                           |\n| s 20....................     | ad F2019L01483                           |\n| s 21....................     | ad F2020L01201                           |\n| s 22....................     | ad F2025L00890                           |\n| s 23....................     | ad F2026L00049                           |\n| Schedule 1                   |                                          |\n| Schedule 1 heading.......... | am F2020L01707                           |\n| Schedule 1................   | am F2018L01293; F2019L01483; F2020L01201 |\n| Schedule 2................   | am F2018L01293; F2019L00434              |\n|                              | rep F2020L01707                          |","sortOrder":0}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":true,"description":"The instrument has grown significantly beyond its original 2018 scope. Originally focused on general farm business concessional loans, it has expanded through amendments to include: (1) specific drought loan programs with interest-free periods (2019), (2) cessation of those interest-free periods (2020), (3) National Water Infrastructure Loan Facility (2020), and (4) a complete overhaul of interest rate methodology in 2025-2026 replacing earlier approaches. Part 4 now contains extensive transitional provisions managing the interaction between these overlapping programs, effectively turning the instrument into a chronicle of evolving agricultural policy rather than a single coherent mandate."},"complexity_factors":["Multiple amendment layers (7 amending instruments since 2018) creating transitional provisions in Part 4 that interact with current rules","Mathematical method statements for interest rate calculations with specific rounding rules and 0.1% threshold triggers","Nested conditional logic in sections 4A(3)-(6) with alternating 6-month periods (Feb-July vs Aug-Jan) requiring cross-referencing to previous periods","Transitional provisions (sections 20-23) that override standard terms for specific cohorts of loans based on offer dates and draw-down dates","Dual dependency structure: interest rates depend on both the 10-year government bond rate AND previous period components, creating recursive calculations","Schedule 1 contains substantive operational rules (loan specs, eligibility criteria) mixed with policy objectives, blurring the line between primary instrument and schedule","Defined terms scattered across section 4 and the Act itself, requiring external reference to the Regional Investment Corporation Act 2018 for full context"],"plain_english_summary":"The Direction instructs the Regional Investment Corporation to run low‑interest loan programs for viable Australian farm businesses—especially drought‑affected or diversifying farms—setting a government‑linked interest formula, eligibility and use rules, and requirements for fair treatment and mediation before enforcement. \n\nIt binds RIC board and staff and impacts farmers and the Commonwealth: it channels taxpayer funds to support agricultural recovery while structuring safeguards to protect public money."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":true,"description":"The instrument’s scope has expanded beyond a general operating mandate to include a detailed, rule‑based interest‑rate setting mechanism and specific loan product design. Original mandate material (establishing objectives, governance, and broad loan purposes) remains, but later amendments have added precise mechanics for computing interest rates (sections 4A–4B) and altered drought loan terms through transitional provisions (sections 20–21). The 2025 and 2026 amendments explicitly tie future interest‑setting to the new sections and fix initial component values for the 1 February 2026 period (section 23). These changes shift the instrument from principally declaratory governance to prescriptive financial‑product rules (interest formulas, rounding/trigger rules, and administrative component treatments), thereby materially widening the instrument’s operational scope."},"complexity_factors":["Interest‑rate setting mechanics introduced in sections 4A–4B with a two‑component formula (Commonwealth borrowing costs component + Corporation administrative costs component)","Trigger and rounding rules for the borrowing component (6‑month average of daily 10‑year bond rate, rounded to 2 decimal places, 0.1% change threshold) (section 4A(3)–(4))","Administrative costs component carried forward by default but subject to ministerial direction (sections 4A(5)–(6))","Multiple cross‑references to the parent Act for defined terms and direction powers (numerous: definitions note, and references to directions under the Act)","Schedule 1 contains numerous eligibility and loan specification conditions (loan caps, term, interest‑only period, security requirements and approved purposes)","Non‑delegable Board decisions (foreclosure and debt waivers) increasing governance complexity (section 11(4)–(5))","Several transitional and amendment provisions (sections 20–23) tying past and future changes to specific cohorts of loans — adds temporal complexity","Reporting and internal review procedural requirements (sections 12, 16) that impose process rules and information flows","Interplay with other prescribed programs via section 4B (rates for other programs tied to farm loan rates)","History of multiple amending instruments and staged changes recorded in endnotes (legal provenance and evolving scope — endnotes and legislation history)"],"plain_english_summary":"**What this instrument does (mechanics first)\n\n- Sets an operating mandate for the Regional Investment Corporation (the Corporation). It tells the Corporation how to run farm business loan programs that provide concessional (below‑market) finance to Australian farm businesses (see Part 3 and Schedule 1).\n\n- Specifies how interest rates on those farm business loans must be calculated: the interest rate is the sum of two components for each 6‑month period — a Commonwealth borrowing costs component (tied to the recent average daily 10‑year Australian Government bond rate) and a Corporation administrative costs component (usually carried over from the previous 6‑month period unless Ministers direct otherwise) (see section 4A). Section 4B makes these same rates apply to other prescribed loan programs.\n\n- Prescribes basic loan specifications in Schedule 1: maximum loan size (the lesser of 50% of a borrower’s total debt being Commonwealth concessional loans or $2 million), an initial loan term of 10 years with an initial interest‑only period of five years, and the ability for borrowers to repay early without penalty. It also requires assessment of capacity to repay and adequate security before approving loans and lists minimum types of security the Corporation must consider (Schedule 1).\n\n- Sets governance, management and reporting obligations for the Corporation: it must publish program guidelines, follow prudential loan management and arrears policies, offer farm debt mediation, perform internal reviews of loan decisions, consult Ministers on waivers, give regular quarterly reports to Ministers, and not take actions likely to damage the Commonwealth’s reputation (sections 9, 11, 12, 16, 19).\n\n- Contains transitional rules that altered drought loan terms in the past (including temporary interest‑free periods) and records later amendments that changed how interest rates are set (sections 20–23 and endnotes/legislation history).\n\nWho this affects\n\n- Farm businesses that meet the instrument’s eligibility and mandatory requirements (Schedule 1). Typical features of eligible borrowers: principally engaged in primary production in Australia, registered for tax/GST with an ABN, in financial need but assessed as long‑term viable, not bankrupt or under external administration, and have support from commercial lenders for proposed concessional loans (Schedule 1 — Mandatory requirements).\n\n- The Corporation and its Board, which must implement the program, set policies, manage loan recovery and make non‑delegable decisions on foreclosure and debt waivers (section 11(4)–(5)).\n\n- The Commonwealth (taxpayers and responsible Ministers): the Commonwealth provides appropriations for loan funds and administrative expenses, receives loan repayments back as soon as reasonably practicable (subject to some limited reimbursements retained by the Corporation), and supervises the Corporation through reporting and consultation powers (section 7, sections 14–17).\n\nWhy it matters (claimed purpose and practical effects)\n\n- The stated policy objective is to provide low‑cost finance to farm businesses to support long‑term resilience, productivity and drought preparedness or recovery (section 6 and Schedule 1 — Policy objectives). That is the purpose claim contained in the instrument.\n\n- How that translates into incentives and costs in practice:\n  - Who pays: the financial subsidy implicit in concessional loans is borne by the Commonwealth (budget appropriations and the difference between market borrowing costs and concessional rates) (section 7(1)–(5), section 4A). Loan repayments are generally returned to the Commonwealth (section 7(4)), so the Commonwealth recoups some funds, but initial subsidy and administrative costs arise.\n  - Who decides: the Corporation (and its Board) runs the program and applies eligibility, security and prudential rules (sections 9, 11, Schedule 1). Ministers have oversight through consultation and can issue directions under the parent Act that affect the administrative cost component and other matters (see references to directions under the Act in sections 4A(5)–(6) and 9(1)).\n  - Behaviour changes induced: eligible farm businesses may restructure debt, refinance existing concessional loans, or take new concessional borrowing for operating expenses, productivity investments or drought measures (Schedule 1: approved loan purpose). The instrument also requires commercial lender support for concessional loans (Schedule 1 — mandatory requirement (d)), which keeps private lenders involved and reduces the program acting as sole lender.\n\nAssessment against implementation risks, trade‑offs and administrative burdens\n\n- Trade‑offs and fiscal cost: providing concessional loans converts budget appropriation into below‑market finance. The Commonwealth absorbs funding risk and subsidy cost (section 7). Repayments largely return to the Commonwealth, but collections and any waivers still transfer cost or risk back to the budget (section 7(4)–(5), section 11(5)).\n\n- Discretion and control points: the Board retains significant discretions (security required, waiver and foreclosure decisions are Board decisions and cannot be delegated — section 11(4)–(5); guidelines and eligibility specifics are to be developed by the Corporation in consultation with Ministers — section 9(1)). Ministers can influence the Corporation via reporting requirements (section 16) and existing direction powers in the Act (not reproduced here but referenced at 4A(5)–(6) and 9(1)). These are concrete levers that shape who receives loans and on what terms.\n\n- Compliance, administration and reporting burden: the Corporation must publish guidelines, perform internal reviews of decisions (section 12), maintain prudential policies, offer debt mediation (section 11(3)), and provide quarterly reports and ad‑hoc information to Ministers (section 16). These impose measurable administrative effort and cost.\n\n- Design choices that affect implementation risk:\n  - Interest‑rate mechanism: the Commonwealth borrowing costs component is tied to a 6‑month average of the daily 10‑year bond rate with a 0.1 percentage‑point trigger for change, and rounding rules (section 4A(3)–(4)). This introduces potential timing, rounding and step‑change effects in borrower rates when the trigger is met.\n  - The Corporation administrative costs component normally rolls forward from the prior 6‑month period unless overridden by a Ministerial direction (section 4A(5)–(6)), giving Ministers a policy tool to change the administrative margin.\n  - Transitional amendments have previously altered borrower entitlements (for example, changing interest‑free and interest‑only periods for drought loans and allowing borrowers to elect out) — such retrospective‑style transitional rules create execution and communication obligations (section 20 and 21).\n\nMarket effects and private sector interaction (light market‑liberal lens)\n\n- Competition and private lenders: the instrument permits and encourages refinancing and requires support from commercial lenders for concessional loans (Schedule 1), which preserves a role for private finance rather than replacing it. The availability of concessional finance may, however, change private lending terms or willingness to lend depending on how much risk is transferred to the Commonwealth (Schedule 1 mandatory requirements and 9(4)).\n\n- Contract freedom and ownership: the Corporation requires security and can take foreclosure or recovery action; those powers affect borrower property rights but are exercised under the Corporation’s prudential policies and Board decisions (section 11, Schedule 1).\n\n- Prices and productivity: concessional loans lower the effective cost of capital for participating farms, which could facilitate investment in productivity upgrades or drought resilience. The scale is limited by the loan cap (50% of total debt in Commonwealth concessional loans or $2 million) and eligibility tests (Schedule 1).\n\nConcentrated benefits vs diffuse costs and capture risk\n\n- Concentrated benefits go to approved farm business borrowers who obtain concessional finance. Costs and risks are diffuse and fall on the Commonwealth’s budget/taxpayers in the form of appropriations and any net losses from loans or waivers (section 7).\n\n- The instrument gives the Board and responsible Ministers levers (security requirements, waiver consultation, administrative cost direction, reporting) that create potential for concentrated advocacy by specific industry groups. The instrument itself requires industry engagement (section 15) and ongoing advice to Ministers (section 17), which are explicit channels for stakeholder influence.\n\nKey operational constraints and borrower protections\n\n- Borrowers must be assessed as having capacity to repay and provide sufficient security before approval (Schedule 1).\n\n- The instrument mandates internal review procedures and farm debt mediation to protect applicants and borrowers in disputes (section 12, section 11(3)).\n\n- Certain Board actions (foreclosure and debt waiver decisions) cannot be delegated, increasing direct Board accountability for major borrower outcomes (section 11(4)–(5)).\n\nSummary statement of who pays, who decides and likely behaviour changes\n\n- Who pays: the Commonwealth provides appropriations for loans and bears the subsidy; borrowers repay loans and usually repayments are returned to the Commonwealth (section 7).\n- Who decides: the Corporation and its Board implement policy, set program guidelines and make key credit decisions, with responsible Ministers exercising oversight and direction powers (sections 9, 11, 16; and references to ministerial direction under the Act).\n- Behaviour changes: eligible farm businesses can restructure or refinance debt, access below‑market credit for drought preparedness/recovery or productivity investment, and will engage with the Corporation’s application, security and reporting processes (Schedule 1, sections 9 and 11)."}},"importantCases":[],"_links":{"self":"/api/acts/regional-investment-corporation-operating-mandate-direction-2018","history":"/api/acts/regional-investment-corporation-operating-mandate-direction-2018/history","analysis":"/api/acts/regional-investment-corporation-operating-mandate-direction-2018/analysis","conflicts":"/api/acts/regional-investment-corporation-operating-mandate-direction-2018/conflicts","importantCases":"/api/acts/regional-investment-corporation-operating-mandate-direction-2018/important-cases","documents":"/api/acts/regional-investment-corporation-operating-mandate-direction-2018/documents"}}