Supplementary Dairy Assistance - Frequently Asked Questions

• have a DSAP record for their dairy farm enterprise demonstrating market milk deliveries in the 1998-99 financial year of at least 25.1%; and
• have an interest in a dairy farm enterprise on 21 May 2001;
• do not have a current application for or payment from the Dairy Exit Program.

If the DAA is still considering your application for a DSAP payment right, you will be assessed for a basic or additional market milk payment if you are granted a DSAP payment right and meet the eligibility criteria.

There is no need to apply for these payment rights as eligibility is determined from information that the DAA already holds.  All eligible dairy producers will be automatically notified of their payment rights and the conditions that applies.

There will be a minimum or basic market milk payment entitlement per dairy farm enterprise:

• based on an amount of $10,000 for enterprises that had a market milk dependency of 25.1 per cent to 30 per cent
• based on an amount of $15,000 for enterprises that had a market milk dependency from 30.1 per cent upward. 

Those enterprises that were dependent on market milk returns for more than 35 per cent of the milk delivered in 1998-99 will be eligible for a basic market milk payment, or an additional market milk payment, whichever is the larger entitlement.

The calculation for the additional market milk payment will be a sliding scale, where for every 0.10 per cent market milk dependency greater than 35 per cent in 1998-99, the enterprise will receive an additional payment of 0.12 cents a litre for those deliveries. 

At and above 45 per cent dependency, a flat rate of 12 cents a litre will apply.

The enterprise entitlement is capped at $60,000 and is shared among the various parties to the enterprise according to their entitlements under the DSAP package. 

For your information only, a ready reckoner is available to assist you in calculating your market milk entitlement, if you are eligible.

Yes.  You will have the option of receiving the basic market milk payment or additional market milk payment as a lump sum, or (as is currently the case) as a payment right paid quarterly over eight years, with these rights backdated to 1 July 2000.

The DAA will forward information on the likely timing of events, including payment, with the advice of entitlement.  On receipt of a notice from the DAA, you will need to confirm you are still actively involved in dairy farming, advise the DAA of your choice of either lump sum or quarterly instalments and advise the DAA of the bank account details for your payments.  If there are no problems with your entitlement, payments will be made as soon as practicable.

These payments will be in effect a grant or subsidy and therefore will be subject to income tax, whether the payments are made over an eight-year period or as a lump sum.

Discretionary Payments

The overriding principle is that discretionary payments are to help those who have been unintentionally limited in, or denied, a Dairy Structural Adjustment Program (DSAP) payment right, because of a significant event or significant crisis or significant anomalous circumstance. 

What is a significant event or significant crisis?

For an event or crisis to be considered as significant, it needs to be clearly demonstrated that milk production was directly affected by the event or crisis. The event or crisis may include illness, injury or death; or disease or death of dairy animals, drought, storm, flood or other natural event.

Under DSAP, the amount that I was paid was very small, as I was not able to produce milk for the whole of the 1998-99 year. Am I eligible for a Discretionary Payment?

You may be eligible for a Discretionary Payment. The DAA will request further information from you, including milk production details for the years prior to 1998-99, and more recent production information. You will also have to provide proof of the circumstances or arrangements that led to lower production in 1998-99.

What is a significant anomalous circumstance?

A significant anomalous circumstance relates to a change in the ownership or management of the dairy farm enterprise prior to 28 September 1999, which affected your entitlement to a DSAP payment or the face value of your DSAP payment right. You will need to provide evidence of the change in ownership or management of the enterprise, and the effect of that change on your DSAP entitlement.

I am a lessor, can I get paid under the new Scheme?

As a land lessor, you may be eligible for consideration if you were granted a DSAP entitlement, and receive at least 50 per cent of total income from the dairy farm enterprise lease. You must be able to demonstrate that this lease income has fallen by at least 20 per cent.

Are there timing issues relating to when I was on the farm in the Supplementary Dairy Assistance Scheme?      

You must have held an interest in a dairy farm enterprise between 1 July 1998 and 28 September 1999, however, the specific detail depends on which section of the Scheme applies to your circumstances.

Where possible, the DAA will identify cases that may be eligible, based on the information currently available, and will send application forms seeking any further information required to make an assessment. You will have six months from the date of the request to supply the DAA with that information.

How can I be sure my case will be considered by DAA?

If you wish to be considered for discretionary payment right you should telephone 1800 503 603 to register your interest in receiving an information package, including application forms. Alternatively, you can write to the DAA, requesting consideration of your case.

When will I be paid?

The discretionary payment will only be made in 32 quarterly instalments for eight years backdated to 1 July, 2000. Timing of payment, if you are eligible, will depend on when you receive a Notice of Decision from the DAA. Providing you return the required forms to the DAA, payment will be made as soon as practicable.

Is a lump sum payment available for Discretionary Payment?

Discretionary payments will only be available in 32 quarterly instalments backdated to 1 July 2000.

This payment will be in effect a grant or subsidy and therefore will be subject to income tax.