This Act requires mediation before a Creditor can take possession of, or otherwise enforce, a farm mortgage. It creates a Farm Debt Mediation Commissioner who issues exemption certificates (permitting enforcement) and prohibition certificates (temporarily blocking enforcement), accredits mediators and oversees the mediation process. Farmers and Creditors must meet prescribed timelines, may share mediator fees, can enter binding mediation agreements with a cooling‑off period, and face fines or voided enforcement for non‑compliance.
This Act creates a statutory mediation-first regime for farm debts secured by a "farm mortgage". Mechanically, it requires a Creditor to obtain an exemption certificate from the Farm Debt Mediation Commissioner before taking enforcement action under a farm mortgage (section 14). Conversely, a farmer in default who requests mediation may obtain a prohibition certificate that prevents a Creditor from taking enforcement action for a fixed period (section 19, section 21). The Act establishes a Farm Debt Mediation Commissioner to administer the certificate processes and to accredit mediators (sections 11 to 13, 22). It sets out who may start mediation (either Creditor or farmer), mandatory timeframes for responses (20 business days for responses to notices or requests, sections 24(3), 25(3)), the nominated-mediator process (farmer nominates, Creditor accepts or rejects, section 26), the conduct, confidentiality and limits of mediation (parts of Division 3 and sections 28 to 31), and binding mediation agreements with a statutory cooling-off regime (sections 34 to 37).
The Act limits its application to farm debts that are secured wholly or partly by a farm mortgage and to Creditors insofar as they are Creditors under such farm debts (section 5 definitions, section 8(1)). It excludes certain insolvency contexts and externally administered corporations from application (section 8(2)). It also preserves the operation of other statutory reliefs and supervisory duties, explicitly not affecting the Banking Act and APRA duties (section 9).
The Commissioner has discretionary functions that include issuing exemption and prohibition certificates, accrediting mediators, and setting mediation procedure (sections 12, 16, 19, 22, 28). Where the Commissioner makes a decision about certificates or mediator accreditation, an affected party can seek a Ministerial review (section 41), with some decisions subject to automatic stays during review (section 42). Failure to comply with mandatory certificate requirements renders enforcement actions void (section 14(2)), and the Act prescribes fines for certain contraventions, including substantial fines for taking enforcement action without an exemption certificate (section 14(1)).
Current sections
Direct links to the current provisions in Farm Debt Mediation Act 2024.
The provisions of this Act commence on a day or days to be proclaimed.
3
Object of Act
3 Object of Act
The object of this Act is to provide for the efficient and equitable resolution of matters involving farm debts by requiring mediation before a Creditor can take possession of property or other enforcement action under a farm mortgage.
4
Act binds Crown
4 Act binds Crown
This Act binds the Crown in right of Tasmania and, in so far as the legislative power of Parliament permits, in all its other capacities.
5
Interpretation
5 Interpretation
(1) In this Act –
approved form means a form approved by the Commissioner;
Commissioner means the Farm Debt Mediation Commissioner appointed under section 11(1) ;
cooling-off period, in relation to a draft mediation agreement or a mediation agreement, means the cooling-off period specified in section 36(2) ;
cooling-off period statement means a statement, in an approved form, specifying the cooling-off period;
Creditor means a person to whom a farm debt is, for the time being, owed by a farmer;
default, in relation to a farm mortgage, means failure to perform an obligation that, under the terms of the mortgage, is a ground for enforcement action;
draft mediation agreement means a draft mediation agreement prepared in accordance with section 34 ;
enforcement action, in relation to a farm mortgage, means taking possession of property under the mortgage or any other action to enforce the mortgage, including the giving of any statutory enforcement notice, or the continuation of any action to that end already commenced, but does not include –
(a) the completion of the sale of property held under the mortgage in respect of which contracts were exchanged before the commencement of Part 4 of this Act; or
(b) the enforcement of a judgment that was obtained before the commencement of Part 4 of this Act;
exemption certificate means a certificate that is issued and is in force in accordance with section 16 ;
farm means land on which a farmer engages in a farming operation;
farm debt means a debt incurred by a farmer for the purposes of the conduct of a farming operation that is secured wholly or partly by a farm mortgage;
farmer means a person (whether an individual person or a corporation) who is solely or principally engaged in a farming operation and includes –
(a) a person who owns land cultivated under a share-farming agreement; and
(b) the personal representatives of a deceased farmer;
farm machinery means any of the following things that are commonly used for the purposes of a farming operation:
(a) a vehicle, machine or other implement;
(b) any other thing of a prescribed class;
farm mortgage includes any interest in, or power over, any farm property securing obligations of the farmer, whether as a debtor or guarantor, including –
(a) any interest in, or power arising from, a hire purchase agreement relating to farm machinery; and
(b) any stock mortgage or any crop or wool lien; and
(c) the interest of the lessor of any farm machinery that is leased;
farm property means –
(a) a farm or part of a farm; or
(b) farm machinery used by a farmer in connection with a farming operation; or
(c) a licence, or a water allocation, within the meaning of the Water Management Act 1999 , that is held by a farmer in connection with a farming operation;
function includes a power, authority or duty;
hire purchase agreement means an agreement –
(a) for the letting of goods with an option to purchase the goods; or
(b) for the purchase of goods by instalments (whether the agreement describes the instalments as rent or hire or otherwise) –
but does not include any agreement by which the property in the goods comprised in the agreement passes at the time of the agreement or on or at any time before the delivery of the goods;
mediation agreement means a mediation agreement in accordance with section 35 ;
mediation request means a request inviting a Creditor to participate in mediation that is given to the Creditor by a farmer in accordance with section 25(1) ;
mediator means a person accredited, or reaccredited, as a mediator in accordance with section 22 ;
notice inviting mediation means a notice inviting a farmer to participate in mediation that is given to the farmer by a Creditor in accordance with section 24(1) ;
parties, in relation to mediation, means any of the following persons who are participants in the mediation:
(a) a farmer;
(b) a Creditor;
(c) an agent approved to represent a farmer or Creditor in the mediation in accordance with section 32 ;
(d) an advisor who is present at the mediation in accordance with section 32(7) ;
prohibition certificate means a certificate that is issued and in force in accordance with section 19 ;
(c) a notice, under any Act, that is prescribed for the purposes of this definition.
(2) For the purposes of this Act, satisfactory mediation means a mediation that –
(a) has achieved a resolution of a matter involving a farm debt; or
(b) has proceeded as far as it reasonably can in attempting to achieve a resolution of a matter involving a farm debt but has nevertheless failed to resolve the matter; or
(c) is prescribed, or is within a class of mediations prescribed, for the purposes of this subsection to be a satisfactory mediation.
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Mediation
6 Mediation
(1) Mediation is a structured negotiation process in which a mediator, as a neutral and independent party, assists the parties in the process –
(a) to communicate effectively with each other; and
(b) to reach agreement on the issues in dispute; and
(c) to achieve their own resolution of the dispute.
(2) The regulations may prescribe that any process of a specified kind is, or is not, mediation for the purposes of this Act.
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Farming operation
7 Farming operation
(1) A farming operation is a business undertaking that primarily involves one or more of the following activities:
(a) agriculture (for example, crop growing and livestock or grain farming);
(b) aquaculture;
(c) the cultivation or harvesting of timber or native vegetation;
(d) any activity involving primary production carried out in connection with an activity referred to in paragraph (a) , (b) or (c) .
(2) A farming operation does not include a business undertaking that primarily involves wild harvest fishing or the hunting or trapping of animals, birds or reptiles in the wild.
(3) The regulations may prescribe that any business undertaking of a specified kind is, or is not, a farming operation for the purposes of this Act.
Part 2
Application of Act
Part 2 Application of Act
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Application of Act
8 Application of Act
(1) Subject to subsections (2) and (3) , this Act applies in respect of Creditors only in so far as they are Creditors under a farm debt.
(2) This Act does not apply in respect of –
(a) a farmer whose property is subject to control under Division 2 of Part X of the Bankruptcy Act 1966 of the Commonwealth; or
(b) a farmer whose property is the subject of a bankruptcy petition presented by any person; or
(c) a farmer that is an externally administered corporation within the meaning of the Corporations Act.
(3) This Act does not apply in respect of a farm debt secured by a farm mortgage if –
(a) the farmer is in default under the farm mortgage; and
(b) the farm mortgage secures all or part of the balance outstanding under an earlier farm mortgage; and
(c) the farmer and the Creditor have previously entered into a mediation agreement under this Act in relation to the farm debt.
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Relationship of Act with other laws
9 Relationship of Act with other laws
(1) Nothing in this Act affects the operation of any other Act that deals with the granting of relief in respect of harsh, oppressive, unconscionable or unjust contracts or on the grounds of hardship.
(2) Nothing in this Act is to be construed as affecting the operation of the Banking Act 1959 of the Commonwealth and, in particular, the duty of the Australian Prudential Regulation Authority under Division 2 of Part II of that Act.
(3) Except as otherwise expressly provided by this Act, this Act does not affect or limit a civil right or remedy that exists apart from this Act, whether at common law or otherwise.
(4) Other than as provided in this section, this Act has effect despite any other Act.
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Contracting out of Act prohibited
10 Contracting out of Act prohibited
(1) A provision of an agreement or other instrument (whether in writing or not and whether entered into before or after the commencement of this section) is void to the extent that it purports to exclude, modify or limit the application of a provision of this Act.
(2) A provision of an agreement or other instrument (whether in writing or not and whether entered into before or after the commencement of this section) is void to the extent that it purports to have a farmer (whether as debtor or guarantor) or a guarantor indemnify a Creditor for any loss or liability arising under this Act.
(3) A Creditor who is a party to an agreement, or other instrument, referred to in subsection (1) or (2) is guilty of an offence.
Penalty: Fine not exceeding 60 penalty units.
Part 3
Farm Debt Mediation Commissioner
Part 3 Farm Debt Mediation Commissioner
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Appointment of Farm Debt Mediation Commissioner
11 Appointment of Farm Debt Mediation Commissioner
(1) The Minister is to appoint a State Service officer, or State Service employee, as the Farm Debt Mediation Commissioner.
(2) For the avoidance of doubt, a person appointed as Commissioner may hold that office in conjunction with State Service employment.
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Commissioner's functions and powers generally
12 Commissioner's functions and powers generally
(1) The functions of the Commissioner include –
(a) functions relating to enforcement actions in respect of farm mortgages in accordance with Part 4 ; and
(b) the functions assigned to, or conferred or imposed on, the Commissioner under this Act or any other Act; and
(c) the ability to do all things necessary or convenient to be done in connection with a matter under this Act.
(2) The Commissioner has the power to do all things necessary or convenient to be done in connection with, or incidental to, the performance of the Commissioner’s functions.
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Delegation
13 Delegation
The Commissioner may delegate a function or power of the Commissioner under this Act, other than this power of delegation, to a State Service employee or State Service officer.
Part 4
Enforcement Actions in Respect of Farm Mortgages
Part 4 Enforcement Actions in Respect of Farm Mortgages
Division 1
Exemption certificates
Division 1 Exemption certificates
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Creditor must obtain exemption certificate before taking enforcement action
14 Creditor must obtain exemption certificate before taking enforcement action
(1) A Creditor must not take an enforcement action in respect of a farm mortgage unless an exemption certificate –
(a) is granted to the Creditor; and
(b) is in force in respect of the relevant farm debt.
Penalty: In the case of –
(a) a corporation, a fine not exceeding 1 500 penalty units; or
(b) an individual, a fine not exceeding 300 penalty units.
(2) An enforcement action taken by a Creditor in respect of a farm debt in contravention of this Act is void.
(3) This section does not invalidate a statutory enforcement notice or other process given, served or executed in order to fulfil a condition precedent to the taking of an enforcement action, but operates to prohibit the taking of the action concerned and the enforcement by a court or tribunal of any such notice or process.
(4) Subsection (3) does not affect any proceedings authorised under section 17(5) to be continued and concluded after the expiry of an exemption certificate.
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Application for exemption certificate
15 Application for exemption certificate
A Creditor under a farm mortgage may apply, in an approved form, to the Commissioner for an exemption certificate specifying that this Act does not apply to the farm mortgage.
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Determination of application for exemption certificate
16 Determination of application for exemption certificate
(1) Subject to this section, the Commissioner is to determine an application for an exemption certificate made under section 15 –
(a) by granting the application and issuing an exemption certificate, in an approved form, to the applicant; or
(b) by refusing the application.
(2) For the purposes of subsection (1) , the Commissioner must grant the application and issue an exemption certificate if –
(a) the farmer is in default under the farm mortgage; and
(b) no prohibition certificate is in force in relation to the farm mortgage; and
(c) the Commissioner is satisfied that there is at least one additional ground for granting the application that is referred to in subsection (3) .
(3) For the purposes of subsection (2)(c) , each of the following is an additional ground for granting the application for an exemption certificate:
(a) the farmer has, when in default, given a mediation request to the Creditor and satisfactory mediation has taken place following the request;
(b) the Creditor has given the farmer a notice inviting mediation and has attempted to mediate in good faith throughout the period of 3 months (or such longer period as has been agreed by the Creditor for the purposes of this section by notice in writing given to the farmer) commencing on the day on which the notice was given;
(c) the farmer has failed to respond to a notice inviting mediation within the period required by Part 5 (or within such longer period as the Commissioner considers is reasonable in the circumstances);
(d) the farmer has failed to take part in mediation in good faith or has unreasonably delayed entering into or proceeding with mediation in respect of the farm debt;
(e) the farmer has indicated in writing to the Commissioner or to the Creditor that the farmer does not wish to enter into or proceed with mediation in respect of the farm debt.
(4) Despite this section, the Commissioner may refuse to grant an application for an exemption certificate made under section 15 if satisfied that –
(a) in the circumstances, the farmer is justified in declining to mediate; and
(b) the farmer intends to mediate within a period that is reasonable in the circumstances.
(5) For the avoidance of doubt, the Commissioner may refuse to grant an application for an exemption certificate made under section 15 if a mediator cannot commence the mediation –
(a) within a period of 3 months from the date on which the application is made under section 15 ; or
(b) within any other period that the Commissioner considers appropriate in the circumstances.
(6) For the avoidance of doubt, a failure by a Creditor to agree to reduce or forgive any debt does not, of itself, demonstrate a lack of good faith on the part of a Creditor in attempting to mediate.
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Duration of exemption certificate
17 Duration of exemption certificate
(1) Subject to subsection (2) , (3) or (4) , an exemption certificate takes effect on the date on which it is issued and remains in force until the date on which the effective period ends.
(2) For the purposes of subsection (1) , the effective period for an exemption certificate is –
(a) if satisfactory mediation in respect of the farm debt concerned has taken place, or the farmer has failed to take part in mediation in good faith – the period of 3 years commencing on the last date of the mediation; or
(b) if the farmer has indicated in writing that the farmer does not wish to enter into or proceed with mediation – the period of 3 years commencing on the date on which the indication was given to the Commissioner or Creditor; or
(c) if the farmer has failed to respond to a notice inviting mediation within the period of 20 business days (or any longer period allowed by the Commissioner for the purposes of determining the application for the exemption certificate) – the period of 3 years commencing immediately after the end of the period required or allowed for the response; or
(d) in any other case – the period of 3 years commencing on the date on which the certificate was issued.
(3) An exemption certificate is not to be issued after the date on which it would, if issued, expire under subsection (1) .
(4) An exemption certificate is to specify the date on which it expires.
(5) The expiry of an exemption certificate does not affect any proceedings for the recovery of a farm debt, or for the exercise or enforcement of any right of the Creditor, already taken or commenced by a Creditor while the exemption certificate was in force, and any such proceedings may be continued and concluded as if the certificate were still in force.
(6) The reference in subsection (5) to the commencement of proceedings does not include a reference to the giving of any statutory enforcement notice or other action taken in order to fulfil a condition precedent to the enforcement of a right otherwise than through proceedings in a court or tribunal.
Division 2
Prohibition certificate prohibiting Creditor from taking enforcement action
Division 2 Prohibition certificate prohibiting Creditor from taking enforcement action
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Application for prohibition certificate
18 Application for prohibition certificate
(1) A farmer who is in default, and who has requested a Creditor to mediate in respect of the farm debt concerned, may apply to the Commissioner for a certificate prohibiting the Creditor from taking enforcement action.
(2) An application for a prohibition certificate under subsection (1) –
(a) may be made whether or not the farmer has been given a notice inviting mediation in respect of the farm debt; and
(b) is to be in an approved form.
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Determination of application for prohibition certificate
19 Determination of application for prohibition certificate
(1) Subject to this section and on receipt of an application for a prohibition certificate under section 18 , the Commissioner is to determine the application –
(a) by granting the application and issuing a prohibition certificate, in an approved form, to the applicant; or
(b) by refusing the application.
(2) For the purposes of subsection (1) , the Commissioner must grant the application and issue a prohibition certificate if –
(a) the farmer is in default under the farm mortgage; and
(b) the farmer has given the Creditor a mediation request in respect of the farm debt concerned; and
(c) no exemption certificate is in force in relation to the farm mortgage; and
(d) the Commissioner is satisfied that there is at least one additional ground for granting the application that is referred to in subsection (3) .
(3) For the purposes of subsection (2)(d) , each of the following is an additional ground for granting an application for a prohibition certificate:
(a) the farmer has attempted to mediate in good faith throughout the period of 3 months commencing on the day on which the mediation request was given, but no satisfactory mediation has taken place;
(b) the Creditor has failed to respond to a mediation request in respect of the farm debt within the period required by Part 5 (or within such longer period as the Commissioner considers is reasonable in the circumstances);
(c) the Creditor has indicated in writing to the Commissioner or the farmer that the Creditor does not wish to enter into or proceed with mediation.
(4) Despite this section, the Commissioner may refuse to grant an application made under section 18 where the Creditor has failed to respond to a mediation request if the Commissioner is satisfied that –
(a) the Creditor’s failure to respond is justified in the circumstances; and
(b) the Creditor intends to mediate within a period that is reasonable in the circumstances.
(5) For the avoidance of doubt, the Commissioner may refuse to grant an application made under section 18 if a mediator cannot commence the mediation –
(a) within a period of 3 months from the date on which the application is made under section 18 ; or
(b) within any other period that the Commissioner considers appropriate in the circumstances.
20
Prohibition certificate not to be issued while exemption certificate in force
20 Prohibition certificate not to be issued while exemption certificate in force
Despite this Division, a prohibition certificate cannot be issued by the Commissioner in relation to a farm mortgage while an exemption certificate is in force in relation to the farm mortgage.
21
Duration of prohibition certificate
21 Duration of prohibition certificate
A prohibition certificate takes effect on the date on which it is issued and remains in force for a period of 6 months.
Part 5
Mediation
Part 5 Mediation
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Accreditation of mediators
22 Accreditation of mediators
(1) On the application of a person, in an approved form, or on the Commissioner’s own initiative, the Commissioner may accredit or reaccredit any number of persons that the Commissioner considers appropriate to act as mediators for the purposes of this Act.
(2) In determining whether or not to accredit or reaccredit a person as a mediator under subsection (1) , the Commissioner may take into account any matter that the Commissioner considers appropriate, including, but not limited to, the following matters:
(a) whether or not the person is a suitable person to be accredited or reaccredited as a mediator;
(b) whether or not the person holds the qualifications, skills, knowledge and experience to perform the functions of a mediator.
(3) An accreditation or reaccreditation under subsection (1) may be –
(a) subject to any terms and conditions that the Commissioner considers appropriate; and
(b) for any period that the Commissioner determines.
(4) The Commissioner may suspend or revoke the accreditation or reaccreditation of a person as a mediator under subsection (1) , if –
(a) the Commissioner is no longer satisfied that the person –
(i) is a suitable person to be accredited or reaccredited as a mediator; or
(ii) holds the qualifications, skills, knowledge and experience to perform the functions of a mediator; or
(b) the person has failed to comply with a term or condition of that person’s accreditation or reaccreditation.
23
Functions of mediators
23 Functions of mediators
(1) Subject to subsection (2) , a mediator has the following functions:
(a) to resolve, or attempt to resolve, by mediation, matters relating to the present arrangement, and future conduct, of financial relations between a farmer and a Creditor involving a farm debt;
(b) such other functions as are conferred or imposed on the mediator by or under this or any other Act.
(2) It is not a function of a mediator –
(a) to advise a farmer or Creditor about the law; or
(b) to encourage or assist a farmer or Creditor in reserving or establishing legal rights; or
(c) to act as an adjudicator or arbitrator.
(3) A mediator is not civilly or criminally liable in respect of the performance, in good faith, of the functions of a mediator.
24
Creditor-initiated mediation
24 Creditor-initiated mediation
(1) A Creditor under a farm mortgage may give a farmer who is in default under the farm mortgage a notice inviting the farmer to participate in mediation in respect of the farm debt concerned.
(b) must specify that a failure by the farmer to respond to the notice, within the period specified in subsection (3) , may constitute a ground for the grant of an exemption certificate.
(3) A farmer must respond, in an approved form, to a notice inviting mediation within 20 business days after receiving the notice.
25
Farmer-initiated mediation
25 Farmer-initiated mediation
(1) A farmer who owes money to a Creditor under a farm mortgage may make a request to the Creditor inviting the Creditor to participate in mediation in respect of the farm debt concerned.
(b) must specify that a failure by the Creditor to respond to the request, within the period specified in subsection (3) , may constitute a ground for the grant of a prohibition certificate; and
(c) may be made whether or not the farmer is in default under the farm mortgage; and
(d) may not be made if the Creditor has given the farmer a notice inviting mediation in respect of the farm debt.
(3) A Creditor must respond, in an approved form, to a mediation request within 20 business days after receiving the request.
Division 3
Mediation procedure
Division 3 Mediation procedure
26
Farmer to nominate mediator
26 Farmer to nominate mediator
(1) If a farmer and a Creditor agree to participate in mediation in respect of a farm debt, the farmer must nominate a mediator.
(2) A Creditor may not nominate a mediator but must accept or reject the mediator nominated by a farmer under subsection (1) .
(3) If a Creditor rejects the mediator nominated by a farmer under subsection (1) –
(a) the rejected mediator cannot mediate between the farmer and the Creditor; and
(b) the farmer must nominate a panel of at least 3 other mediators; and
(c) the Creditor must choose, from the panel of mediators nominated under paragraph (b) , one mediator to mediate between the farmer and the Creditor.
27
Requests for information
27 Requests for information
(1) For the purpose of assisting a farmer and a Creditor to participate in mediation, a mediator may facilitate an exchange of information between the farmer and the Creditor.
(2) If a farmer requests information from a Creditor for the purposes of mediation, the farmer must first provide the mediator with a copy of the request.
(3) If a Creditor requests information from a farmer for the purposes of mediation, the Creditor must first provide the mediator with a copy of the request.
(4) In preparing a summary of a mediation under section 39 , a mediator is to have regard to whether any request for information made by a farmer under subsection (2) , or by a Creditor under subsection (3) , was reasonable, and whether information was provided in response to the request within a reasonable period.
(5) Subsection (4) does not limit the matters to which the mediator is to have regard in preparing a summary of a mediation under section 39 .
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Conduct of mediations
28 Conduct of mediations
(1) Subject to this section, the Commissioner is to determine the procedure for commencing and conducting a mediation session.
(2) A mediation session is to be conducted with as little formality and technicality, and with as much expedition, as possible.
(b) adjourn a mediation session if it appears that a party would be significantly disadvantaged because of the length of the mediation; and
(c) adjourn or terminate a mediation session if it appears that continuing to conduct the mediation would not be appropriate.
(4) In determining whether it would be appropriate to continue to conduct a mediation session under subsection (3)(c) , a mediator is to consider the following matters:
(a) the duration of the mediation session;
(b) whether the parties are able and willing to participate in the mediation;
(c) whether the parties are engaging in the mediation session in good faith;
(d) any risk to the health or safety of the parties that may result if the mediation is continued;
(e) any other matters that, in the opinion of the mediator, are relevant in the circumstances.
(5) Subject to subsection (6) , a mediation session is to be conducted at a place and time, and in a manner, that is reasonably convenient for the parties.
(6) For the avoidance of doubt, a reference under this section –
(a) to a place at which a mediation session is to be conducted includes a mediation conducted electronically; and
(b) to a party participating or being present in a mediation session includes the party participating or being present in a mediation electronically; and
(c) to conducting a mediation session includes conducting a mediation electronically.
(7) The rules of evidence do not apply to a mediation session.
29
Mediation to be held in private
29 Mediation to be held in private
A mediation session is not to be open to the public.
30
Confidentiality of mediation
30 Confidentiality of mediation
(1) In this section, mediation session includes any steps taken in the course of making arrangements for a mediation session or in the course of the follow-up of a mediation session.
(2) Subject to this section, evidence of anything said or admitted during a mediation session and a document prepared for the purposes of, or in the course of or pursuant to, a mediation session are not admissible in any proceedings in a court or before a person or body authorised to hear and receive evidence.
(3) This section does not apply to the following documents:
(a) a mediation agreement;
(b) a contract, deed, mortgage or other instrument entered into as a result of, or pursuant to, a mediation agreement;
(4) This section does not apply to proceedings commenced in respect of any act or omission in connection with which information has been disclosed on the basis of preventing or minimising the danger of injury to any person or damage to any property.
31
Disclosure of information
31 Disclosure of information
A person must not disclose information obtained in a mediation session or in connection with the administration or execution of this Act unless the disclosure is made –
(a) with the consent of the person from whom the information was obtained; or
(b) in connection with the administration or execution of this Act; or
(c) as reasonably required for the purpose of referring any party to any person, agency, organisation or other body and, with the consent of the party, for the purpose of aiding in the resolution of an issue between the parties; or
(d) to prevent or minimise the danger of injury to any person or damage to any property; or
(e) in accordance with a requirement imposed by or under a law of the State (other than a requirement imposed by a subpoena or other compulsory process) or the Commonwealth; or
(f) with other lawful excuse.
Penalty: Fine not exceeding 60 penalty units.
32
Representation and assistance during mediation
32 Representation and assistance during mediation
(1) Parties to a mediation are not entitled to be represented by an agent at the mediation unless the representation by the agent is approved by the mediator.
(2) A mediator may only approve representation by an agent, who may or may not be an Australian legal practitioner, at a mediation under subsection (1) if the mediator is satisfied that –
(a) an agent should be permitted to facilitate the mediation; and
(b) the agent proposed to be appointed has sufficient knowledge of the issue concerned to enable the agent to represent the party effectively.
(3) An approval by a mediator under subsection (1) may be given subject to any conditions that the mediator considers reasonable to ensure that the other party to the mediation is not substantially disadvantaged by the agent appearing at the mediation.
(4) An agent approved by a mediator under subsection (1) must comply with any conditions placed under subsection (3) on the appearance of the agent at the mediation.
(5) An agent, approved by a mediator under subsection (1) , must not attend a mediation unless the agent has been given a written authority, by the farmer or the Creditor that the agent represents, authorising the agent to enter into a mediation agreement.
(6) Subsection (1) does not prevent a corporation, within the meaning of the Corporations Act 2001 of the Commonwealth, that is a party to a mediation from being represented at the mediation by an officer of the corporation.
(7) Despite this section, a farmer who is a party to a mediation is entitled to have an advisor, who may or may not be an Australian legal practitioner, present at the mediation and the farmer is entitled to call upon that advisor for advice and counsel during the mediation.
(8) A contravention of this section does not invalidate a mediation.
33
Costs of mediation
33 Costs of mediation
(1) Subject to subsection (2) , all parties to a mediation are to pay –
(a) unless otherwise agreed to in writing by the parties to the mediation, an equal share of any fee charged by the mediator for the mediation; and
(b) their own costs and expenses associated with participating in the mediation.
(2) A party to a mediation is to pay the whole of the mediator’s fees for the mediation, and all costs associated with the attendance by another party to an additional mediation session, if –
(a) the party fails to give a written authority, in accordance with section 32(5) , to an Australian legal practitioner, or agent, to represent the party; and
(b) as a result of failing to give that written authority, more than one mediation session is required.
(3) The Commissioner is not liable for any of the fees, costs or expenses of or associated with mediation for the purposes of this Act.
Division 4
Mediation agreements
Division 4 Mediation agreements
34
Draft mediation agreements
34 Draft mediation agreements
(1) Subject to subsection (2) , if a mediator is satisfied that the parties to a mediation have agreed, or are about to agree, on an issue between them, the mediator must personally prepare for the consideration of the parties a draft mediation agreement setting out the main points of agreement on the issue.
(2) A draft mediation agreement prepared under subsection (1) must include a cooling-off period statement.
35
Mediation agreements
35 Mediation agreements
(1) Subject to subsection (2) , if the parties to a mediation are satisfied that a draft mediation agreement sets out the main points agreed on by the parties during, or within 24 hours after the end of, the mediation, the parties may enter into a mediation agreement by signing the draft mediation agreement.
(2) A mediation agreement entered into under subsection (1) must include a cooling-off period statement.
(3) A mediation agreement is binding on the parties to the agreement.
(4) A mediation agreement may be varied or replaced by a further mediation agreement in writing between the parties to the agreement.
(5) A minor defect or minor technical irregularity in a mediation agreement does not invalidate the agreement.
36
Cooling-off period for mediation agreements
36 Cooling-off period for mediation agreements
(1) Subject to subsection (2) , a cooling-off period applies to all mediation agreements.
(2) The cooling-off period that applies to a mediation agreement expires –
(a) if a cooling-off period statement was included in the draft mediation agreement – at 5 p.m. on the 10th business day after the day on which the mediation agreement was entered into; or
(b) if a cooling-off period statement was not included in the draft mediation agreement – at 5 p.m. on the 10th business day after the day on which a cooling-off period statement is given to a farmer by a Creditor.
(3) The Commissioner is not to issue an exemption certificate to a Creditor on the ground that satisfactory mediation in respect of a farm debt has taken place if –
(a) a mediation agreement is in force in relation to the farm debt; and
(b) the cooling-off period has not expired.
37
Rights during cooling-off period
37 Rights during cooling-off period
(1) A farmer may, during a cooling-off period, serve a written notice on the Creditor or the Creditor’s Australian legal practitioner to the effect that the farmer rescinds the mediation agreement subject to the cooling-off period.
(2) A notice of rescission under subsection (1) must be signed by the farmer or the farmer’s Australian legal practitioner.
(3) On service of a notice of rescission signed in accordance with this section, the mediation agreement is taken to be rescinded ab initio.
(4) If rescission of a mediation agreement occurs in accordance with this section, the farmer or Creditor is entitled to make a claim for such compensation, adjustment or accounting as is just and equitable between the farmer and the Creditor where a party has received a benefit under the mediation agreement.
(5) This section and section 36 do not affect any right or remedy available otherwise than under this section or section 36 .
(6) A Creditor may not make a claim under subsection (4) if the only basis of the claim is the rescission of the mediation agreement under this section.
38
Implementing mediation agreement
38 Implementing mediation agreement
A Creditor who is a party to any contract, deed, mortgage or other instrument which purportedly results from, or is pursuant to, a mediation agreement between the Creditor and a farmer, but which fails to reflect the relevant mediation agreement, is guilty of an offence.
Penalty: Fine not exceeding 60 penalty units.
39
Summary of mediation
39 Summary of mediation
On conclusion of a mediation, a mediator must complete an approved form setting out a summary of the conduct and results of the mediation (including any mediation agreement entered into by the parties to the mediation).
Part 6
Review of Administrative Decisions
Part 6 Review of Administrative Decisions
40
Interpretation
40 Interpretation
In this Part –
aggrieved person means –
(a) in relation to a decision about the grant or refusal of a prohibition certificate or an exemption certificate – the farmer or guarantor whose obligations are secured by the farm mortgage concerned, or the Creditor; or
(b) in relation to a decision about accreditation or reaccreditation of a mediator – the mediator;
application means an application, for a review of a decision, made in accordance with section 41(1) .
41
Review of decisions of Commissioner
41 Review of decisions of Commissioner
(1) An aggrieved person may apply to the Minister for a review of any of the following decisions:
(a) a decision to grant, or to refuse to grant, a prohibition certificate;
(b) a decision to grant, or to refuse to grant, an exemption certificate;
(c) a decision to accredit or reaccredit, or to refuse to accredit or reaccredit, a person as a mediator;
(d) a decision to suspend or revoke the accreditation of a mediator.
(2) An application must –
(a) be in an approved form; and
(b) be lodged with the Minister within 20 business days (or such longer period as the Minister may allow) after the person was notified of the making of the decision concerned; and
(c) comply with such other requirements as may be prescribed by the regulations.
(3) In considering an application, the Minister –
(a) may invite any person who, in the opinion of the Minister, may be affected by the outcome of the review to submit material for consideration; and
(b) is to consider any relevant material submitted by the applicant and any relevant material submitted by any other person in accordance with paragraph (a) .
(4) In determining an application, the Minister may –
(a) affirm the decision; or
(b) vary the decision; or
(c) set aside the decision and make a decision in substitution for the decision that is set aside.
(5) In determining an application, the Minister may exercise the same powers under this Act, or any other law, that the Commissioner had in making the decision that is the subject of the review.
(6) The Minister is to give notification of the Minister’s decision in respect of an application to –
(a) the applicant; and
(b) if the review relates to a decision about the grant or refusal of a prohibition certificate or an exemption certificate – the farmer or Creditor, or any guarantor, under the farm mortgage concerned who is not the applicant for the review; and
(c) the Commissioner.
(7) A notification under subsection (6) is to include a statement of reasons for the decision.
(8) The Minister is to determine an application within 30 business days after the application is made, but a determination is not invalid because it is made after the expiration of that period.
(9) The Minister may delegate a function or power of the Minister under this section, other than this power of delegation.
42
Stay of reviewable decisions
42 Stay of reviewable decisions
(1) An application for a review of a decision to grant an exemption certificate operates to stay the decision until the applicant is notified of the Minister’s decision in respect of the application.
(2) If an application is made for a review of a decision to refuse to grant a prohibition certificate, the Creditor must not take enforcement action in respect of the farm mortgage concerned until the Creditor is notified of the Minister’s decision in respect of the application.
(3) An application for a review of any of the following decisions does not operate to stay the decision:
(a) a decision to grant a prohibition certificate;
(b) a decision to refuse an exemption certificate;
(c) a decision to accredit or reaccredit, or to refuse to accredit or reaccredit, a person as a mediator;
(d) a decision to suspend or revoke the accreditation of a mediator.
Part 7
Miscellaneous
Part 7 Miscellaneous
43
Regulations
43 Regulations
(1) The Governor may make regulations for the purposes of this Act.
(2) The regulations may be made so as to apply differently according to matters, limitations or restrictions, whether as to time, circumstance or otherwise, specified in the regulations.
(3) The regulations may –
(a) provide that a contravention of any of the regulations is an offence; and
(b) in respect of such an offence provide for the imposition of a fine not exceeding 50 penalty units, and in the case of a continuing offence, a further fine not exceeding 10 penalty units for each day during which the offence continues.
(a) the administration of this Act is assigned to the Minister for Small Business and Consumer Affairs; and
(b) the department responsible to the Minister in relation to the administration of this Act is the Department of State Growth.
Source text: opening excerpt
Sourced from Tasmanian Legislation Online (legislation.tas.gov.au), CC BY 4.0.
Part 1 Preliminary
Part 1 Preliminary
1 Short title
1 Short title
This Act may be cited as the Farm Debt Mediation Act 2024 .
2 Commencement
2 Commencement
The provisions of this Act commence on a day or days to be proclaimed.
3 Object of Act
3 Object of Act
The object of this Act is to provide for the efficient and equitable resolution of matters involving farm debts by requiring mediation before a Creditor can take possession of property or other enforcement action under a farm mortgage.
4 Act binds Crown
4 Act binds Crown
This Act binds the Crown in right of Tasmania and, in so far as the legislative power of Parliament permits, in all its other capacities.
5 Interpretation
5 Interpretation
(1) In this Act –
approved form means a form approved by the Commissioner;
business day means a day that is not –
(a) a Saturday or Sunday; or
(b) a statutory holiday within the meaning of the Statutory Holidays Act 2000 ;
Commissioner means the Farm Debt Mediation Commissioner appointed under section 11(1) ;
cooling-off period, in relation to a draft mediation agreement or a mediation agreement, means the cooling-off period specified in section 36(2) ;
cooling-off period statement means a statement, in an approved form, specifying the cooling-off period;
Creditor means a person to whom a farm debt is, for the time being, owed by a farmer;
The practical mechanical change is therefore to insert a mediation and administrative-approval layer in the pre-enforcement path for most farm mortgage enforcement, with statutory remedies, time limits, confidentiality rules and penalties tied to non‑compliance.
Main concepts
Key statutory concepts are defined and structured to determine the Act’s reach and operation. The Act is purpose-built around four core concepts: farm debt, farm mortgage, mediation, and the certificate regime.
Farm debt and farm mortgage. "Farm debt" is a debt incurred by a farmer for the purposes of conducting a farming operation that is secured wholly or partly by a "farm mortgage" (section 5 definitions). "Farm mortgage" is broadly defined to include interests and powers over any farm property securing obligations, explicitly including hire purchase agreements for farm machinery, stock mortgages, crop or wool liens, and the interest of a lessor in leased farm machinery (section 5). "Farm property" includes land, farm machinery and certain licences and water allocations (section 5). The Act thus targets debts integral to productive agricultural operations and not merely incidental consumer credit.
Mediation. Mediation is defined as a structured negotiation led by a neutral mediator to help parties communicate and reach their own resolution (section 6). The regulations may further define or exclude particular processes from being mediation (section 6(2)). Mediators are accredited persons (section 22) and their functions are limited to facilitating resolution, not providing legal advice or adjudicating (section 23).
Certificates. Two administrative certificates mediate the enforcement clock. An exemption certificate authorises a Creditor to take enforcement action and must be obtained before enforcement under a farm mortgage (section 14, sections 15-17). A prohibition certificate prevents enforcement for the period it is in force and is available to a farmer in default who has requested mediation (sections 18-21). The Commissioner grants or refuses certificates based on prescribed grounds and discretion (sections 16 and 19).
Process rules. Either party can initiate mediation: a Creditor gives a notice inviting mediation to a farmer in default (section 24), and a farmer may give a mediation request to a Creditor (section 25). Both notices and requests must be in approved forms and trigger 20 business day response obligations (sections 24(2)-(3), 25(2)-(3)). The farmer nominates the mediator when both agree to mediate (section 26). The mediator controls procedure and can facilitate exchange of information, call pre‑mediation conferences, adjourn, terminate, and prepare a summary and draft mediation agreement (sections 27-28, 39). Mediation sessions are private and largely confidential, with statutory exceptions for mediation agreements, resulting contracts, and summaries (sections 29-30, 39).
Mediation agreements and cooling-off. Draft mediation agreements prepared by the mediator must include a cooling-off statement (section 34). Mediation agreements are binding but subject to a cooling-off period that normally expires 10 business days after signing or receipt of the cooling-off statement, and rescission during the cooling-off period renders the agreement void ab initio (sections 35-37). The Commissioner cannot issue an exemption certificate on the ground that satisfactory mediation has occurred if the cooling-off period has not expired (section 36(3)).
These concepts establish an administrative, time‑bounded mediation layer with statutory protections for confidentiality and a limited capacity to restrain enforcement while mediation is pursued. The Act combines prescriptive time limits and form requirements with Commissioner discretion in accreditation and certificate grants.
Who it affects
The Act identifies specific classes of persons and transactions to which it applies and excludes others. The principal affected parties are farmers, Creditors under farm debts, mediators, the Commissioner, and the Minister for review functions.
Farmers. A "farmer" is anyone, individual or corporate, solely or principally engaged in a farming operation. This includes owners operating under share‑farming agreements and personal representatives of deceased farmers (section 5). A "farming operation" is a business primarily involving agriculture, aquaculture, cultivation or harvesting of timber or native vegetation, or related primary production activities, but excludes wild harvest fishing and hunting/trapping in the wild (section 7). The Act therefore covers a broad range of primary producers and their entities that use farm property as security.
Creditors. A "Creditor" means the person to whom a farm debt is owed (section 5). The Act's substantive obligations apply to Creditors only insofar as they are Creditors under a farm debt (section 8(1)). Creditors must not take enforcement action without an exemption certificate (section 14). Creditors may initiate mediation if a farmer is in default (section 24) and must respond to farmer-initiated mediation requests within 20 business days (section 25(3)).
Mediators. Mediators are individuals accredited by the Commissioner under an approved process (section 22). The Commissioner may accredit, reaccredit, impose conditions, set accreditation periods, suspend or revoke accreditation (section 22). Mediators facilitate exchange of information and prepare summaries and draft agreements (sections 27, 34, 39), but they must not give legal advice or act as adjudicators (section 23).
Commissioner and Minister. The Minister appoints a Farm Debt Mediation Commissioner from State Service officers/employees (section 11). The Commissioner decides on accreditation, issues prohibition and exemption certificates, and determines mediation procedure (sections 12, 16, 19, 22, 28). Aggrieved persons (farmers, creditors, guarantors, mediators) can apply to the Minister for review of the Commissioner’s decisions (section 41). The Minister can affirm, vary or substitute decisions and must provide reasons (section 41).
Exclusions. The Act does not apply to a farmer whose property is under the control of the Bankruptcy Act Part X Division 2, a farmer subject to a bankruptcy petition, or a farmer that is an externally administered corporation under the Corporations Act (section 8(2)). Also, the Act does not apply where a farm mortgage secures the outstanding balance under an earlier farm mortgage and the farmer and Creditor have previously mediated under this Act in relation to the farm debt (section 8(3)).
Third parties and advisors. Parties may bring advisors to mediation and agents may represent parties only with mediator approval and, for agents, written authority to enter into mediation agreements (section 32). The Act contemplates involvement of guarantors as aggrieved persons for review rights (section 40).
Who pays and bears procedural burdens. Farmers and Creditors share mediator fees and pay their own costs unless otherwise agreed, with equal shares as the default (section 33). Both parties face time-limited obligations to respond to mediation invitations and requests (sections 24(3), 25(3)). Creditors who proceed to enforcement without an exemption certificate risk substantial fines and that the enforcement is void (section 14).
Key duties and rights
The Act prescribes concrete duties, timeframes, rights to start or resist enforcement, and rights to administrative review.
Duties and procedural obligations
Pre‑enforcement certificate duty on Creditors. A Creditor must not take enforcement action in respect of a farm mortgage unless an exemption certificate has been granted and is in force in respect of the relevant farm debt (section 14(1)). Enforcement taken in contravention is void (section 14(2)). The section allows giving statutory enforcement notices or other process required as a condition precedent, but prohibits taking enforcement action and court enforcement of such notices while the certificate requirement is unmet (section 14(3)).
Notices and responses. A Creditor may give a notice inviting mediation to a farmer in default, which must be in approved form and must state that failure to respond within the specified period (20 business days) may be a ground for an exemption certificate (section 24(1)-(2), 24(3)). A farmer may give a mediation request to the Creditor, also in approved form, which must state that the Creditor’s failure to respond within 20 business days may be a ground for a prohibition certificate (section 25(1)-(2), 25(3)). A mediation request cannot be made where a Creditor has already given a notice inviting mediation (section 25(2)(d)).
Mediator nomination and acceptance. If parties agree to mediate, the farmer must nominate a mediator; the Creditor cannot nominate but may accept or reject; rejection requires the farmer to nominate at least three other mediators, from which the Creditor chooses (section 26).
Information exchange. Mediators may facilitate information exchange and the mediator must be provided copies of requests for information before such requests are made (section 27(1)-(3)). The mediator will consider reasonableness and timeliness of responses in preparing the mediation summary (section 27(4)-(5)).
Costs. Parties pay an equal share of mediator fees and their own costs unless the parties agree otherwise (section 33(1)). If a party’s failure to give written authority to an Australian legal practitioner or agent makes additional mediation sessions necessary, that party pays the mediator’s full fees and costs for the additional attendance by other parties (section 33(2)).
Rights created by the Act
Right to seek prohibition and exemption certificates. A farmer in default who has requested mediation may apply for a prohibition certificate (section 18). A Creditor may apply for an exemption certificate specifying that the Act does not apply to the mortgage (section 15). The Commissioner must grant exemption or prohibition certificates if specified statutory criteria are met, including default, mediation attempts or responses, absence of existing prohibition/exemption, and other grounds enumerated in sections 16(2)-(3) and 19(2)-(3).
Right to mediation and confidentiality. Parties may mediate, and mediation sessions must be private and largely confidential with statutory inadmissibility of mediation discussions and documents in other proceedings, except for certain documents like mediation agreements, resulting contracts, and the mediation summary (sections 29-30, 39).
Cooling-off and rescission. Mediation agreements include a mandatory cooling-off statement and are subject to a 10 business day cooling-off period after entry or after the statement is given, during which the farmer may rescind the agreement and rescission takes effect ab initio (sections 34-37). Parties can claim compensation or adjustments if benefits have been received prior to rescission, other than a Creditor claiming solely because of rescission (section 37(4)-(6)).
Review rights. Aggrieved persons may apply to the Minister for review of Commissioner decisions on grants/refusals of prohibition or exemption certificates and mediator accreditation decisions, within 20 business days in an approved form (section 41). A decision to grant an exemption certificate is stayed during review (section 42(1)), and refusal to grant a prohibition certificate triggers a stay on enforcement by the Creditor until notified of the Minister’s decision (section 42(2)). Certain decisions are not stayed during review, including grants of prohibition certificates and refusals of exemption certificates (section 42(3)).
Protection from mediator liability. Mediators are not civilly or criminally liable for actions performed in good faith in performing mediator functions (section 23(3)), which protects mediator activity within the statutory scheme.
These duties and rights create an administrative workflow that places time-limited obligations and rights on both farmers and Creditors and inserts an adjudicative-administrative stage in enforcement decision-making.
Penalties and enforcement
The Act attaches specific criminal or civil penalties to non‑compliance and provides mechanisms that affect the validity of enforcement actions.
Primary penalties and voidness
Enforcement without exemption certificate. A Creditor that takes enforcement action in respect of a farm mortgage without an exemption certificate is guilty of an offence. For corporations the maximum fine is 1 500 penalty units, and for individuals 300 penalty units (section 14(1)). Any enforcement action taken in contravention is void (section 14(2)). However, the Act allows statutory enforcement notices or other process to be given if they serve as a condition precedent, but it prohibits actually taking the enforcement action and prevents courts or tribunals from enforcing such notices while the certificate requirement is unmet (section 14(3)). The expiry of an exemption certificate does not affect proceedings already taken or commenced while the exemption certificate was in force, and such proceedings may be continued and concluded as if the certificate were still in force (section 17(5)).
Contracting out prohibited. Any provision in an agreement that purports to exclude, modify or limit this Act is void, and if a Creditor is party to such a provision the Creditor commits an offence carrying a penalty of up to 60 penalty units (section 10(1), (3)). Similarly, indemnities for losses arising under the Act are void (section 10(2)).
Confidentiality breaches. A person must not disclose information obtained in a mediation session or in connection with administering the Act unless an exception applies. Contravention carries a fine not exceeding 60 penalty units (section 31).
Failure to reflect mediation agreement. A Creditor who purports to implement a contract, deed, mortgage, or instrument that is said to result from, or pursuant to, a mediation agreement but fails to reflect the mediation agreement is guilty of an offence with a maximum fine of 60 penalty units (section 38).
Regulations‑level offences. The regulations may make contraventions of the regulations offences with fines up to 50 penalty units and daily fines for continuing offences up to 10 penalty units per day (section 43(3)).
Administrative enforcement
Certificate decisions and review. The Commissioner controls issue and refusal of prohibition and exemption certificates (sections 16 and 19). Aggrieved persons can seek review by the Minister within specified time limits and in approved form (section 41). The Minister may affirm, vary or set aside and substitute decisions and must provide reasons (section 41(4)-(7)). Certain reviews have automatic stays: review of an exemption certificate grant stays the decision until the Minister decides (section 42(1)), and review of refusal to grant a prohibition certificate prevents enforcement action until notified (section 42(2)). However, the Act specifies that a review does not stay grants of prohibition certificates or refusals to grant exemption certificates (section 42(3)).
Mediator accreditation enforcement. The Commissioner may set conditions on accreditation, suspend or revoke accreditation, and those accreditation decisions are reviewable by the Minister (sections 22, 41).
Practical enforcement implications
Voiding of enforcement actions is a blunt enforcement mechanism. If a Creditor proceeds without an exemption certificate, not only may fines apply, but the action is void, which effectively prevents recovery or possession that would otherwise have been available. The Act, however, allows prior notices to be given to satisfy conditions precedent, which creates a narrow window for procedural preservation but not for substantive enforcement (section 14(3)).
Temporal limits on prohibitions. Prohibition certificates last 6 months (section 21), while exemption certificates are typically effective for 3 years under the durations in section 17, depending on circumstances. The temporality shapes the enforcement calendar and can impose defined delay periods on enforcement action.
Cost exposure. Monetary fines are modest for confidentiality or contracting out compared to the high corporate fine for enforcement without a certificate, indicating the legislature prioritised preventing unapproved enforcement more than punishing lesser procedural breaches.
These enforcement mechanisms combine administrative review, statutory voidness, and monetary penalties. They empower the Commissioner and Minister while placing heavy consequences on Creditors who fail to follow the certificate regime.
How it interacts with other laws
The Act explicitly sets boundaries with other statutory regimes and preserves certain existing rights and duties.
Preserved statutory rights and supervisory duties
No limitation on other reliefs. Section 9(1) states that nothing in the Act affects the operation of any other Act that deals with relief for harsh, oppressive, unconscionable or unjust contracts or on grounds of hardship. This leaves open statutory consumer‑oriented or equitable relief measures and means that parties can still pursue such remedies outside the mediation framework.
Banking Act and APRA. Section 9(2) expressly preserves operation of the Commonwealth Banking Act 1959 and the duties of APRA under that Act. This is a vertical non‑derogation clause that recognises prudential regulation and supervisory duties are unaffected. It may constrain the Commissioner or mediators where APRA‑regulated institutions must meet prudential obligations.
Preservation of other civil rights. Section 9(3) clarifies that, except as otherwise provided, the Act does not affect or limit civil rights or remedies that exist apart from the Act, whether at common law or otherwise. The Act therefore is not exclusive of other legal remedies, albeit it inserts pre‑enforcement administrative steps for farm mortgage enforcement.
Conflicts and precedence
Operative despite other Acts. Section 9(4) provides that, other than as provided, this Act has effect despite any other Act. This gives the Act clear statutory priority over inconsistent State legislation unless that other legislation expressly overrides the Act.
References to other statutes. The definitions for statutory enforcement notice incorporate notices required under the Land Titles Act 1980 and the Conveyancing and Law of Property Act 1884 (section 5 definitions). The Act thus interfaces with these titling and property enforcement mechanisms and constrains courts and tribunals from enforcing such notices where the certificate requirement is unmet (section 14(3)).
Interaction with insolvency and corporate administration
Insolvency exceptions. Section 8(2) carves out farmers whose property is under Division 2 of Part X of the Bankruptcy Act, farmers subject to a bankruptcy petition, and externally administered corporations under the Corporations Act. For those farmers, the Act’s mediation regime does not apply, which leaves insolvency processes to operate without the mediation overlay. This preserves the primacy of Commonwealth insolvency administration and the urgency of insolvency enforcement.
Administrative law overlay
Administrative review and stays. The Act creates a statutory administrative review path to the Minister for decisions on certificates and accreditation (section 41). Certain decisions are automatically stayed during review (section 42). This provides a layer of executive review and decision‑making that coexists with judicial remedies under other laws.
Practical friction points
APRA duties versus mediation delay. Because the Act preserves APRA duties, banks may be constrained in how long they can delay enforcement where prudential obligations require timely risk management. The Act’s certificate processes that allow for stays and delays, and the Commissioner’s discretion on timing (for example, refusing certificates where mediation cannot commence within 3 months, sections 16(5), 19(5)), may need to be calibrated to APRA expectations.
Contractual terms voided. Section 10 voids contractual attempts to contract out of the Act. This will affect drafting and security arrangements and will require lenders and advisors to ensure security documents do not attempt to exclude the Act’s mediation requirements.
Overall, the Act is designed to sit alongside existing Commonwealth and State statutory regimes while inserting a mediation-first administrative procedure for enforcement of farm mortgages, but it leaves intact insolvency regimes and APRA duties and grants itself primacy over conflicting State legislation.
Amendment history
The text provided is the Act as enacted without recorded amendments, transitional modifications or subsequent schedules in the source. Key structural details that bear on the Act’s implementation but which the source does not amend include:
Commencement. The Act’s provisions commence on a day or days to be proclaimed (section 2). This means the operative start date is not contained in the text and will be set by proclamation. The practical effect is that without proclamation, the Act is not yet in force.
No listed amendments. The source includes no later amending enactments, no notes about repeals, and no transitional provisions beyond the expiry/continuation treatment for actions commenced while an exemption certificate was in force (section 17(5)). The Act binds the Crown (section 4), and until administrative arrangements are formalised it assigns administration to the Minister for Small Business and Consumer Affairs and the Department of State Growth (section 44).
Regulation power. Section 43 authorises the Governor to make regulations, including making conduct contraventions offences and setting penalties and continuing fines. That regulation power is a route by which future operational detail and potentially significant compliance obligations or offences may be introduced without further primary legislation.
Delegation and review. The Minister’s and Commissioner’s delegations are preserved by the Act (sections 13 and 41(9)), enabling administrative implementation to be adjusted without legislative amendment.
Because the source contains no amendment chronology, there is no legislative history of amendments to cite from within the Act text. Practitioners must monitor proclamations, the regulations made under section 43, and any subsequent amending Acts to identify operational details, penalties, or procedural requirements not present in the primary text.
Litigation history
The provided text contains no case law, judicial interpretations or litigation history. It does not cite any judicial decisions or administrative determinations. As a recent statute with commencement by proclamation (section 2), there are no judicial records in the source to analyse.
Consequently, there are no reported judicial constructions or precedential decisions within the text that would clarify ambiguous provisions such as the Commissioner’s satisfaction thresholds in sections 16(2)(c) and 19(2)(d), the practical application of "good faith" mediation in sections 16(3)(d) and 19(3)(a), or the interplay between section 14(3) notices and court enforcement.
For practitioners, this means statutory language must be applied in the absence of judicial gloss, and that operational uncertainties,such as acceptable supporting material for a certificate application, the standard for "satisfactory mediation" (section 5(2)), or the interpretation of what constitutes "attempted to mediate in good faith",will likely be the subject of future litigation or administrative guidance. Monitoring early decisions or administrative determinations under the Act will be essential once the Act commences and the Commissioner begins issuing or refusing certificates.
Gotchas
This section highlights traps and non‑obvious features in the statute that can catch practitioners, Creditors, and farmers if not accounted for.
Exemption certificate prerequisite and voidness of enforcement. The Creditor must obtain an exemption certificate before enforcement; taking enforcement without it is both an offence and renders the action void (section 14(1)-(2)). However, section 14(3) permits giving statutory enforcement notices where they are conditions precedent, while prohibiting taking the enforcement action. That nuance allows preservation of procedural steps but not substantive enforcement. Parties relying on notices must plan carefully to avoid substantive steps without certificate.
Mediation request timing and mutual exclusivity. A farmer cannot make a mediation request if the Creditor has already given a notice inviting mediation (section 25(2)(d)). Practitioners must check whether a notice exists before advising a farmer to send a mediation request. Conversely, a Creditor’s notice may create grounds for an exemption certificate if the farmer fails to respond within 20 business days (section 24(2)-(3), section 16(3)(c)).
Cooling-off prevents immediate certification. A mediation agreement is binding but subject to cooling-off. The Commissioner cannot treat mediation as satisfactory for an exemption certificate if the cooling-off period has not expired (section 36(3)). Advisers must account for the 10 business day cooling-off period before the Commissioner may rely on a mediation agreement as the basis for an exemption.
Farmer nominates mediator; Creditor cannot. When parties agree to mediate, the farmer nominates the mediator and the Creditor must accept or reject (section 26). Rejection triggers a panel nomination and selection procedure that can produce delay and requires the farmer to name at least three alternative mediators (section 26(3)). Creditors cannot unilaterally propose mediators, which may be surprising to lenders accustomed to appointing dispute resolvers.
Availability and timing constraints on mediator commencement. The Commissioner may refuse to grant exemption or prohibition certificates if a mediator cannot commence mediation within 3 months (sections 16(5), 19(5)). The approval or refusal of certificates therefore depends not merely on good faith or procedural compliance but also on practical mediator availability.
Prohibition and exemption interplay. A prohibition certificate cannot be issued while an exemption certificate is in force for the same mortgage (section 20). Conversely, an exemption certificate grant is stayed during review (section 42(1)), and refusal to grant a prohibition prevents immediate enforcement until Ministerial review concludes (section 42(2)). Parties should watch timing carefully: an exemption can be used to move to enforcement once effective, but the Ministerial review system can alter the effective pause.
Costs allocation can penalise counsel or agent decisions. The default cost allocation is equal sharing of mediator fees (section 33(1)). But if a party fails to give written authority to an Australian legal practitioner or agent and that omission forces extra sessions, that party pays the whole mediator’s fees and related costs for additional sessions (section 33(2)). Practitioners advising clients should ensure written authorities are executed in advance to avoid cost exposure.
Confidentiality exceptions. Material disclosed in mediation is generally inadmissible (section 30(2)), but mediation agreements, resulting contracts or deeds, and the mediation summary are admissible (section 30(3)). Also, disclosures for preventing danger to persons or property are permitted (section 30(4)). Parties must be careful drafting mediation agreements if they intend enforceability or want certain matters to be admissible.
Contracting out void and penalty. Any clause that purports to contract out of the Act or to indemnify a Creditor against liability under the Act is void and may attract a 60 penalty unit fine for the Creditor party (section 10(1)-(3)). Security documents should be reviewed to remove or avoid such clauses.
Limited clarity on "satisfactory mediation" and "good faith". The Act defines "satisfactory mediation" in section 5(2) with a residual regulator role for prescription. The Commissioner is required to be "satisfied" on multiple grounds for certificates (sections 16(2)(c), 19(2)(d)). How broadly the Commissioner exercises those satisfactions, and what evidence suffices for "good faith", is not set out, leaving uncertainty and potential administrative discretion.
Insolvency carve-out. If a farmer is in bankruptcy administration or an externally administered corporation, the Act does not apply (section 8(2)), meaning enforcement may proceed under insolvency laws. Advisers need to determine a farmer’s insolvency status before relying on the mediation regime.
Mediator accreditation discretion and control. The Commissioner may set terms and conditions for accreditation, and can suspend or revoke accreditation where the person no longer meets suitability or qualification criteria (section 22). Mediator availability or sudden accreditation issues could disrupt scheduled mediations.
These "gotchas" are procedural, timing, evidential or jurisdictional. Many produce practical delays, cost exposures, and administrative discretion. Parties should plan notices, mediator nomination, cooling-off, and certificate applications carefully.
How to comply
Compliance requires process discipline, time-bound responses, documentation in approved forms, and awareness of certificate mechanics and costs. Below are operational steps and checks for each principal actor.
For Creditors (lenders, lessors, hirers)
Pre-enforcement checklist. Before taking possession or any enforcement action under a farm mortgage, ensure an exemption certificate has been granted and is in force for the relevant farm debt (section 14(1)). If uncertain whether the debt is a "farm debt" or the mortgage is a "farm mortgage", document the factual basis for that classification using the Act definitions (section 5).
Notices and forms. If a farmer is in default and mediation appears appropriate, a Creditor may give a notice inviting mediation in an approved form (section 24(1)-(2)). Ensure the notice accurately states that the farmer has 20 business days to respond and that failure to respond may be a ground for an exemption certificate (section 24(2)-(3)). Use the approved forms provided by the Commissioner to avoid form defects.
Response deadlines. If a Creditor receives a mediation request, respond within 20 business days in the approved form to avoid exposure to a potential prohibition certificate (section 25(3)). Document the response and the method of service.
Mediator selection. If parties agree to mediate, be prepared to accept or reject the farmer’s nominated mediator promptly (section 26(1)-(2)). If rejecting, choose from the panel nominated by the farmer as required and document reasons for rejection if relevant.
Evidence of good faith. Maintain records that show attempts to mediate in good faith, including communications, offers, meeting notes, and information exchanges. The Commissioner’s certificate decisions rely on evidence of good faith over specified periods (sections 16(3), 19(3)).
Avoid enforcement without certificate. Do not take substantive enforcement action without an exemption certificate in force; doing so can render actions void and attract substantial fines (section 14). If statutory enforcement notices are necessary as a condition precedent, ensure notices are limited to that purpose and do not cross into actionable enforcement steps while certificate status is unresolved (section 14(3)).
Costs and legal representation. Arrange for and disclose mediator fees and expected cost allocation. If planning to be represented, ensure proper written authority is provided so parties are not exposed to whole-fee liability under section 33(2).
For Farmers (borrowers, guarantors)
Determine applicability. Confirm that your activity qualifies as a "farming operation" under section 7 and that the debt is a "farm debt" secured by a "farm mortgage" (section 5). Check for insolvency status that might exclude you under section 8(2).
Initiating mediation. You may request mediation whether or not you are in default, unless the Creditor has already given a notice inviting mediation (section 25(2)(c)-(d)). Use the approved form and ensure the mediation request notifies the Creditor that failure to respond within 20 business days may be grounds for a prohibition certificate (section 25(2)(b)-(3)).
Applying for a prohibition certificate. If in default and after requesting mediation, you may apply to the Commissioner for a prohibition certificate (section 18). Prepare documentation showing the mediation request and any attempts to engage in mediation. Be mindful of timing and the 3 month periods contemplated in section 19(3)(a).
Mediator nomination and representation. If mediation is agreed, you must nominate the mediator (section 26(1)). You may have an advisor present who may advise you during mediation and you may seek mediator approval for agent representation if necessary (section 32(1) and 32(7)). Ensure any agent has written authority to enter into a mediation agreement (section 32(5)).
Cooling-off and rescission. Recognise that any mediation agreement will carry a cooling-off period that may be the 10th business day after signing or after receipt of the cooling-off statement (section 36). You have the right to rescind during that period in writing, and rescission operates ab initio (section 37).
Confidentiality protections. Be aware of confidentiality and that most mediation communications are inadmissible in other proceedings, except for mediation agreements, resulting instruments, and summaries (section 30). Consider how that affects evidence preservation or disclosure for other legal claims.
For Mediators and the Commissioner
Accreditation compliance. Mediators seeking accreditation must apply in an approved form and satisfy the Commissioner as to suitability, qualifications and experience (section 22). Expect accreditation to be subject to terms, conditions and periods, and to be revokable or suspensible (section 22(3)-(4)).
Procedure and documentation. The Commissioner controls mediation procedure but mediators must act in accordance with sections 28 and 39, including preparing draft mediation agreements with cooling-off statements (sections 34-36) and completing a mediation summary in an approved form (section 39). Keep meticulous records, as summaries are admissible and the Commissioner will consider them in certificate contexts.
Limits on functions. Mediators must not advise on the law, assist in establishing legal rights, or act as arbitrators (section 23(2)). Maintain neutrality and avoid giving legal advice.
Confidentiality boundaries. Follow statutory confidentiality rules and understand the exceptions in section 30 and permitted disclosures in section 31. Ensure mediations are private (section 29), and carefully consider permitted disclosures for safety or administrative purposes.
For administrators and lawyers advising parties
Form adherence. Use approved forms for all notices, requests, applications and certification-related documents throughout the Act. The Act repeatedly requires approved forms (sections 15, 18, 24-25, 39, 41). Procedural formality matters.
Monitor timelines. Keep strict diaries for 20 business day response windows and the 3 month mediation periods referenced in sections 16(5) and 19(5). Mistiming can produce grounds for certificates against your client.
Coordinate with insolvency and prudential obligations. If a farmer is insolvent or the Creditor is an APRA-regulated institution, ensure advice considers insolvency law and APRA duties preserved by section 9. There may be practical limits on how long a regulated institution can delay enforcement.
Ministerial review pathway. Where a party is aggrieved by Commissioner decisions, prepare review applications in approved form and within 20 business days (section 41(2)). Note automatic stays for some decisions under section 42.
Avoid void clauses. Ensure security documentation does not purport to contract out of the Act or indemnify for liabilities under the Act; such clauses are void and can attract fines under section 10.
Practical checklist summary
Confirm Act applicability (definitions and insolvency carve-outs).
Use approved forms for notices, responses and applications.
Meet 20 business day response obligations and 3 month mediation commencement windows.
Do not enforce without a valid exemption certificate in force.
Document good faith mediation attempts and information exchanges.
Ensure written authorities for legal representatives where agents will bind a party.
Record mediation summaries and include mandatory cooling-off statements in draft agreements.
Prepare for Ministerial review where aggrieved, and respect automatic stays where applicable.
Adherence to these processes and documentary practices will materially reduce the risk of procedural invalidity, administrative sanctions, or unintended delays.
default, in relation to a farm mortgage, means failure to perform an obligation that, under the terms of the mortgage, is a ground for enforcement action;
draft mediation agreement means a draft mediation agreement prepared in accordance with section 34 ;
enforcement action, in relation to a farm mortgage, means taking possession of property under the mortgage or any other action to enforce the mortgage, including the giving of any statutory enforcement notice, or the continuation of any action to that end already commenced, but does not include –
(a) the completion of the sale of property held under the mortgage in respect of which contracts were exchanged before the commencement of Part 4 of this Act; or
(b) the enforcement of a judgment that was obtained before the commencement of Part 4 of this Act;
exemption certificate means a certificate that is issued and is in force in accordance with section 16 ;
farm means land on which a farmer engages in a farming operation;
farm debt means a debt incurred by a farmer for the purposes of the conduct of a farming operation that is secured wholly or partly by a farm mortgage;
farmer means a person (whether an individual person or a corporation) who is solely or principally engaged in a farming operation and includes –
(a) a person who owns land cultivated under a share-farming agreement; and
(b) the personal representatives of a deceased farmer;
farming operation – see section 7 ;
farm machinery means any of the following things that are commonly used for the purposes of a farming operation:
(a) a vehicle, machine or other implement;
(b) any other thing of a prescribed class;
farm mortgage includes any interest in, or power over, any farm property securing obligations of the farmer, whether as a debtor or guarantor, including –
(a) any interest in, or power arising from, a hire purchase agreement relating to farm machinery; and
(b) any stock mortgage or any crop or wool lien; and
(c) the interest of the lessor of any farm machinery that is leased;
farm property means –
(a) a farm or part of a farm; or
(b) farm machinery used by a farmer in connection with a farming operation; or
(c) a licence, or a water allocation, within the meaning of the Water Management Act 1999 , that is held by a farmer in connection with a farming operation;
function includes a power, authority or duty;
hire purchase agreement means an agreement –
(a) for the letting of goods with an option to purchase the goods; or
(b) for the purchase of goods by instalments (whether the agreement describes the instalments as rent or hire or otherwise) –
but does not include any agreement by which the property in the goods comprised in the agreement passes at the time of the agreement or on or at any time before the delivery of the goods;
mediation – see section 6 ;
mediation agreement means a mediation agreement in accordance with section 35 ;
mediation request means a request inviting a Creditor to participate in mediation that is given to the Creditor by a farmer in accordance with section 25(1) ;
mediator means a person accredited, or reaccredited, as a mediator in accordance with section 22 ;
notice inviting mediation means a notice inviting a farmer to participate in mediation that is given to the farmer by a Creditor in accordance with section 24(1) ;
parties, in relation to mediation, means any of the following persons who are participants in the mediation:
(a) a farmer;
(b) a Creditor;
(c) an agent approved to represent a farmer or Creditor in the mediation in accordance with section 32 ;
(d) an advisor who is present at the mediation in accordance with section 32(7) ;
prohibition certificate means a certificate that is issued and in force in accordance with section 19 ;
statutory enforcement notice means –
(a) a notice given, or left, in accordance with section 77(1) of theLand Titles Act 1980 ; or
(b) a notice served or published under section 22 of theConveyancing and Law of Property Act 1884 ; or
(c) a notice, under any Act, that is prescribed for the purposes of this definition.
(2) For the purposes of this Act, satisfactory mediation means a mediation that –
(a) has achieved a resolution of a matter involving a farm debt; or
(b) has proceeded as far as it reasonably can in attempting to achieve a resolution of a matter involving a farm debt but has nevertheless failed to resolve the matter; or
(c) is prescribed, or is within a class of mediations prescribed, for the purposes of this subsection to be a satisfactory mediation.
6 Mediation
6 Mediation
(1) Mediation is a structured negotiation process in which a mediator, as a neutral and independent party, assists the parties in the process –
(a) to communicate effectively with each other; and
(b) to reach agreement on the issues in dispute; and
(c) to achieve their own resolution of the dispute.
(2) The regulations may prescribe that any process of a specified kind is, or is not, mediation for the purposes of this Act.
7 Farming operation
7 Farming operation
(1) A farming operation is a business undertaking that primarily involves one or more of the following activities:
(a) agriculture (for example, crop growing and livestock or grain farming);
(b) aquaculture;
(c) the cultivation or harvesting of timber or native vegetation;
(d) any activity involving primary production carried out in connection with an activity referred to in paragraph (a) , (b) or (c) .
(2) A farming operation does not include a business undertaking that primarily involves wild harvest fishing or the hunting or trapping of animals, birds or reptiles in the wild.
(3) The regulations may prescribe that any business undertaking of a specified kind is, or is not, a farming operation for the purposes of this Act.
Part 2 Application of Act
Part 2 Application of Act
8 Application of Act
8 Application of Act
(1) Subject to subsections (2) and (3) , this Act applies in respect of Creditors only in so far as they are Creditors under a farm debt.
(2) This Act does not apply in respect of –
(a) a farmer whose property is subject to control under Division 2 of Part X of the Bankruptcy Act 1966 of the Commonwealth; or
(b) a farmer whose property is the subject of a bankruptcy petition presented by any person; or
(c) a farmer that is an externally administered corporation within the meaning of the Corporations Act.
(3) This Act does not apply in respect of a farm debt secured by a farm mortgage if –
(a) the farmer is in default under the farm mortgage; and
(b) the farm mortgage secures all or part of the balance outstanding under an earlier farm mortgage; and
(c) the farmer and the Creditor have previously entered into a mediation agreement under this Act in relation to the farm debt.
9 Relationship of Act with other laws
9 Relationship of Act with other laws
(1) Nothing in this Act affects the operation of any other Act that deals with the granting of relief in respect of harsh, oppressive, unconscionable or unjust contracts or on the grounds of hardship.
(2) Nothing in this Act is to be construed as affecting the operation of the Banking Act 1959 of the Commonwealth and, in particular, the duty of the Australian Prudential Regulation Authority under Division 2 of Part II of that Act.
(3) Except as otherwise expressly provided by this Act, this Act does not affect or limit a civil right or remedy that exists apart from this Act, whether at common law or otherwise.
(4) Other than as provided in this section, this Act has effect despite any other Act.
10 Contracting out of Act prohibited
10 Contracting out of Act prohibited
(1) A provision of an agreement or other instrument (whether in writing or not and whether entered into before or after the commencement of this section) is void to the extent that it purports to exclude, modify or limit the application of a provision of this Act.
(2) A provision of an agreement or other instrument (whether in writing or not and whether entered into before or after the commencement of this section) is void to the extent that it purports to have a farmer (whether as debtor or guarantor) or a guarantor indemnify a Creditor for any loss or liability arising under this Act.
(3) A Creditor who is a party to an agreement, or other instrument, referred to in subsection (1) or (2) is guilty of an offence.
Penalty: Fine not exceeding 60 penalty units.
Part 3 Farm Debt Mediation Commissioner
Part 3 Farm Debt Mediation Commissioner
11 Appointment of Farm Debt Mediation Commissioner
11 Appointment of Farm Debt Mediation Commissioner
(1) The Minister is to appoint a State Service officer, or State Service employee, as the Farm Debt Mediation Commissioner.
(2) For the avoidance of doubt, a person appointed as Commissioner may hold that office in conjunction with State Service employment.
12 Commissioner's functions and powers generally
12 Commissioner's functions and powers generally
(1) The functions of the Commissioner include –
(a) functions relating to enforcement actions in respect of farm mortgages in accordance with Part 4 ; and
(b) the functions assigned to, or conferred or imposed on, the Commissioner under this Act or any other Act; and
(c) the ability to do all things necessary or convenient to be done in connection with a matter under this Act.
(2) The Commissioner has the power to do all things necessary or convenient to be done in connection with, or incidental to, the performance of the Commissioner’s functions.
13 Delegation
13 Delegation
The Commissioner may delegate a function or power of the Commissioner under this Act, other than this power of delegation, to a State Service employee or State Service officer.
Part 4 Enforcement Actions in Respect of Farm Mortgages
Part 4 Enforcement Actions in Respect of Farm Mortgages
Division 1 Exemption certificates
Division 1 Exemption certificates
14 Creditor must obtain exemption certificate before taking enforcement action
14 Creditor must obtain exemption certificate before taking enforcement action
(1) A Creditor must not take an enforcement action in respect of a farm mortgage unless an exemption certificate –
(a) is granted to the Creditor; and
(b) is in force in respect of the relevant farm debt.
Penalty: In the case of –
(a) a corporation, a fine not exceeding 1 500 penalty units; or
(b) an individual, a fine not exceeding 300 penalty units.
(2) An enforcement action taken by a Creditor in respect of a farm debt in contravention of this Act is void.
(3) This section does not invalidate a statutory enforcement notice or other process given, served or executed in order to fulfil a condition precedent to the taking of an enforcement action, but operates to prohibit the taking of the action concerned and the enforcement by a court or tribunal of any such notice or process.
(4) Subsection (3) does not affect any proceedings authorised under section 17(5) to be continued and concluded after the expiry of an exemption certificate.
15 Application for exemption certificate
15 Application for exemption certificate
A Creditor under a farm mortgage may apply, in an approved form, to the Commissioner for an exemption certificate specifying that this Act does not apply to the farm mortgage.
16 Determination of application for exemption certificate
16 Determination of application for exemption certificate
(1) Subject to this section, the Commissioner is to determine an application for an exemption certificate made under section 15 –
(a) by granting the application and issuing an exemption certificate, in an approved form, to the applicant; or
(b) by refusing the application.
(2) For the purposes of subsection (1) , the Commissioner must grant the application and issue an exemption certificate if –
(a) the farmer is in default under the farm mortgage; and
(b) no prohibition certificate is in force in relation to the farm mortgage; and
(c) the Commissioner is satisfied that there is at least one additional ground for granting the application that is referred to in subsection (3) .
(3) For the purposes of subsection (2)(c) , each of the following is an additional ground for granting the application for an exemption certificate:
This is an opening excerpt, not the complete document.