14Business activities and ownership criteria

14 Business activities and ownership criteria

(1) The Corporation must not make an expanded drought loan to an eligible farm business unless: (a) all primary production aspects of the business are undertaken wholly within Australia; and (b) the business is carried on by: (i) a sole trader covered by subsections (2) and (3); or (ii) a partnership whose partners include a person covered by subsection (2) and a person covered by subsection (3) (whether those subsections cover the same partner or different partners); or (iii) a trust whose beneficiaries or unit‑holders include a person covered by subsection (2) and a person covered by subsection (3) (whether those subsections cover the same beneficiary or unit‑holder or different ones); or (iv) a corporation (within the meaning of the Corporations Act 2001), other than: (A) a public company (within the meaning of that Act); or (B) a constitutional corporation; whose members include a person covered by subsection (2) and a person covered by subsection (3) (whether those subsections cover the same member or different members).

Note: Constitutional corporations are excluded from subparagraph 14(1)(b)(iv) because such corporations are not eligible for loans under the program – see paragraph 5(d).

(2) This subsection covers a person who is an Australian citizen or permanent resident. (3) This subsection covers a person: (a) who has experience in operating a farm business; and (b) whose principal business pursuit is the eligible farm business. (4) An eligible farm business is a person’s principal business pursuit where the person devotes the majority of their labour to, and derives the majority of their income from, the business.