10Who is eligible for an exceptional events supplementary payment right

10 Who is eligible for an exceptional events supplementary payment right

(1) An entity is eligible for an exceptional events supplementary payment right in respect of a dairy farm enterprise if:

(a) the entity has been granted a standard payment right in respect of the enterprise; and

(b) the DAA is satisfied that:

(i) the enterprise was affected by 1 or more exceptional events; and

(ii) as a result of 1 or more of those events, the volume of market milk and manufacturing milk delivered by the enterprise in the base year was less than 70% of the average annual volume of market milk and manufacturing milk delivered by the enterprise in the 1997–1998, 1996–1997 and 1995–1996 financial years.

(2) An entity may be eligible for an exceptional events supplementary payment right in respect of a dairy farm enterprise even if it has already been granted 1 or more exceptional events supplementary payment rights in respect of the enterprise, but the combined face value of the payment rights granted to the entity must not exceed the amount worked out under section 25.

Note Even if an entity is eligible for an exceptional events supplementary payment right, the DAA has a discretion whether or not to grant the payment right: see subsection 18 (3).