38Cancellation of units — dairy exit payment becomes payable

38 Cancellation of units — dairy exit payment becomes payable

(a) an entity has been granted a payment right in relation to a dairy farm enterprise; and

(b) a decision is made:

(i) under the DEP scheme that the entity is qualified for a dairy exit payment in relation to the enterprise; or

(ii) under the farm help re‑establishment grant scheme (within the meaning of the Farm Household Support Act 1992) that the entity is qualified for a dairy‑type grant; and

(c) immediately before the decision is made, the entity is the registered owner of 1 or more unencumbered units in the payment right.

(2) If this subsection applies, the DAA may cancel the unit or units.

(3) In this section:

unencumbered unit means a unit over which no charge is registered.

Note If a unit is cancelled under this section, the cancellation takes effect from the time when the decision is made under the DEP scheme: see subclause 53 (2) of Schedule 2 to the Act.