Farm Business Debt Mediation Bill 2016 (Qld)

An Act to provide for mediation for farm business debts and related purposes, and to amend this Act, the Biological Control Act 1987 , the Biosecurity Act 2014 , the Drugs Misuse Act 1986 and the Rural and Regional Adjustment Act 1994 for particular purposes The Parliament of Queensland enacts—

Part 1 Preliminary

Division 1 Introduction

1 Short title This Act may be cited as the Farm Business Debt Mediation Act 2016 .

2 Commencement This Act, other than part 9, divisions 2 to 4, commences on 1 July 2017.

Division 2 Purpose

3 Purpose (1) The purpose of this Act is to provide an efficient and equitable way for farmers and mortgagees to resolve matters relating to farm business debts. (2) The purpose is achieved mainly by— (a) providing for mediation as a way for farmers and mortgagees to efficiently and equitably resolve matters relating to farm business debts; and (b) requiring a mortgagee, before taking action to enforce a mortgage securing a farm business debt— (i) to offer mediation for the farm business debt to the farmer; and (ii) if the farmer asks for the mediation—to take part in the mediation in good faith; and (c) providing that action that is taken to enforce a mortgage securing a farm business debt in contravention of this Act has no effect.

Division 3 Interpretation

4 Definitions The dictionary in schedule 1 defines particular words used in this Act.

5 Meaning of farm business debt A farm business debt is an amount owed by a farmer that— (a) was borrowed for the purpose of conducting a farming business; and (b) is secured by a farm mortgage.

6 Meaning of mediation for a farm business debt (1) Mediation, for a farm business debt, is 1 or more meetings conducted by a mediator to facilitate discussion between the farmer and the mortgagee— (a) when the farmer has defaulted, or is at risk of defaulting, under the farm mortgage; and (b) that aims to bring about an agreement between the farmer and the mortgagee about 1 or more matters relating to the farm business debt. Examples of matters that may be agreed— • the way for the farmer to remedy a default under the farm mortgage • how the farm mortgage may be enforced or discharged (2) Each meeting mentioned in subsection (1) is a mediation meeting. (3) A reference in this Act to mediation includes— (a) an activity for promoting discussion and bringing about agreement about a matter during mediation; and (b) anything said or done to prepare for a mediation meeting or to follow up a matter discussed or agreed at a mediation meeting.