NSW COMMERCIAL FISHERIES BUSINESS ADJUSTMENT PROGRAM

SHAREHOLDER LOANS

SCHEME INFORMATION and GUIDELINES PURPOSE: To assist commercial fishing operators with the purchase of shares within or following the subsidised share trading market, to meet the new commercial fisheries management linkages commencing from 1 December 2017.

The loans are part of the NSW Government’s strategy and implementation framework to promote the ecological and economic sustainability of the NSW commercial fisheries resource. It seeks to overcome issues of poor economic viability in NSW commercial fisheries and the excess allocation of shares. AMOUNT: Loans up to a maximum of $80,000 to any one commercial fishing shareholder (the applicant) to purchase additional shares.

The maximum loan amount will be assessed using information of both current and future operations including existing and forecast income. ELIGIBLE USES Loans are available for the purchase of:

i) Quota Shares; or ii) Access Shares (also known as Existing Access Shares); or iii) a combination of i) and ii) .

Loan funds cannot be used to purchase: • Effort Quota, e.g. extra days meshing or nights trawling; or • annually allocated quota, e.g. extra kgs of mud or blue swimmer crab.

TERM: A maximum loan term of up to 12 years is available. This is dependent on the amount borrowed and ability to repay. INTEREST: The Interest Rate is 2.50% fixed for the term of the loan. REPAYMENTS: Following final draw-down of all required loan funds, monthly interest only payments during the first two years of the loan will apply followed by monthly Principle and Interest (P&I) for the remainder of the term. Payment method is by Direct Debit from the borrower’s nominated bank account.

Payment in full is required before the mortgage may be discharged or the relevant shares transferred. SECURITY: Provide security acceptable to the NSW Rural Assistance Authority (RAA) including a registered interest over the applicant’s fishing shares (existing and purchased).

NSW Rural Assistance Authority Page 1 of 3 V: 1.3 07/17

Interest to be registered on the Personal Property Securities Register (PPSR).

COSTS: There are no establishment or account keeping fees, however costs for registering security documents and Government Stamp Duty (if applicable) will be borne by the applicant. ELIGIBILTY CRITERIA: To be eligible for assistance applicants must be fishing operators who:

a) own and operate a NSW commercial fishing business;

b) have participated in the subsidised share trading market which commenced on 1 May 2017 (to be confirmed by NSW Fisheries);

c) have share transactions through the Commercial Fisheries Business Adjustment Program that are completed at arm’s length (by unrelated entities) which may be confirmed by NSW Fisheries;

d) earn the majority of their gross income (more than 51 per cent) from their current and future commercial fishing operations;

NOTE: To confirm this, applicants are to provide Financial Statements and Income Tax Returns for the last three financial years for the fishing enterprise as well as individual applicants/directors/partners etc together with Financial Statements and Income Tax Returns for all related/associated businesses.

e) contribute a significant part of their labour (more than 51 per cent) to their commercial fishing operation;

f) demonstrate that the commercial fishing operation has long-term viability and the capacity to repay the loan sought;

g) provide a Business Plan detailing:

• Background Information • Business Assessment • Current Seasonal Outlook and Prospects • Financial Performance • Risk Analysis • Future Strategy

Note: The plan should detail how the proposed purchase of another fishing business will assist the fishing operation to improve profitability and overall viability.

h) provide security, acceptable to the RAA;

i) not have gross non-fishing assets exceeding $5,000,000;

j) be registered with the Australian Taxation Office as a commercial fishing operation, and have an Australian Business Number (ABN). If the business has applied to the Australian Taxation Office, but not yet received the ABN, then they may be considered eligible.

NSW Commercial Fisheries Business Adjustment Program Shareholder loans up to a maximum of $80,000 should only be made for each business entity represented by an ABN. Assistance will only be available to an entity rather than the separate enterprises undertaken by an entity. However where separate business entities are registered under a single ABN, consideration may be given on an exceptions basis, to applications for each business, depending on the circumstances of the particular case.

An applicant in relation to more than one ABN may be the same person. In this case the applicant must provide evidence to support the claim that each ABN is a distinct business entity including: • separate staff • separate equipment • separate profit and loss statements

NSW Rural Assistance Authority Page 2 of 3 V: 1.3 07/17

• separate insurance • separate trading names

k) lodge an application for assistance on or before 1 December 2017.

Confirmation of shares purchased must be provided to the RAA prior to draw down of the approved loan. The approved amount will be based on the number and cost of shares being purchased.

l) Draw down the loan on or before 30 June 2018.

Nominated Commercial Fishing Operators are ineligible to apply. Appeal process The appeal process is defined on the RAA’s appeal brochure and is also available on the RAA’s web site. An appeal brochure is enclosed with every refusal letter to advise applicants of their right to have their application reviewed.

• Appeals MUST be received by the RAA within 20 days of the date of the letter of refusal and include the requirement IF a personal interview or telephone conference is desired.

• The appeal date should be set with the availability of both the applicant and the committee members being mutually available.

• The decision of the Appeal Committee is to be advised in writing. • The decision of the Appeal Committee is final – no further avenues of appeal are available. To Access Funds Applicants must:

• Lodge an application on or before 1 December 2017. • Provide a copy of your current Fishing Business Determination Certificate together with approval

to the purchase of additional shares. • Provide copies of last three years Business Tax Returns and Financial Statements. • Provide copies of last three years personal tax returns for each individual associated with the

Fishing Business.

Before any payment is made you must complete and submit an ‘Authority to Pay’ form to the RAA nominating the bank account you wish to have the funds paid into. RAA will confirm you have submitted an Application for Approval of Transfer of Components of a Fishing Business [Form 8] to NSW DPI – Fisheries Business Services prior to depositing the funds. To apply Application forms are available from the NSW Rural Assistance Authority:

Telephone: 1800 678 593 (Toll Free) Website: www.raa.nsw.gov.au

Facsimile: 02 6391 3098 Email: rural.assist@raa.nsw.gov.au Applications must be received by the NSW Rural Assistance Authority no later than the closing date. Applications received after the advertised closing date will not be accepted.

If you have difficulty understanding this form you should seek the assistance of your rural/financial counsellor, business advisor, accountant or a trusted family member/friend.

Language Services (Interpreting and Translating) are available by contacting Multicultural NSW on 1300 651 500 or by visiting languageservices@multicultural.nsw.gov.au

Send completed application forms to: NSW Rural Assistance Authority Locked Bag 23 ORANGE NSW 2800

NSW Rural Assistance Authority Page 3 of 3 V: 1.3 07/17