This regulation may be cited as the Rural and Regional Adjustment (Sugar Industry Participant Support Loan Scheme) Amendment Regulation 2026.
This regulation amends the Rural and Regional Adjustment Regulation 2011.
After schedule 66—
insert—section 3(1)
The objective of the scheme is to support the processing of sugar cane and the modernisation of sugar milling infrastructure in the Bundaberg region and surrounding areas.2Purpose of financial assistance
The purpose of assistance under the scheme is to enable ICSM to pay—(a)the working capital expenses for operating the mill during and after the 2026 crushing season; and(b)if the authority considers adequate provision has been made for the payment of the working capital expenses for operating the mill for the 2026 crushing season—costs associated with the modernisation of the mill (the mill modernisation costs).In this schedule—2026 crushing season means the period during which sugar cane harvested between 10 June 2026 and 31 December 2026, both dates inclusive, is processed at the mill.ICSM means Isis Central Sugar Mill Company Limited ACN 009 657 078.loan agreement see section 10(1).mill means the mill for processing sugar cane known as the Isis Central Sugar Mill.mill modernisation costs see section 2(b).modernisation, of the mill, means the carrying out of an activity for improving the efficiency of the mill.Examples of types of activities for definition—
•improving the processing of sugar cane in a way that reduces the costs of, or increases productivity from, the processing•using energy more efficiently in the transportation or processing of sugar cane•producing biofuel from by-products of processing sugar cane•co-generating electricity by using bagasse produced in the processing of sugar canescheme means the scheme set out in this schedule.working capital expenses, for operating the mill, means the expenses, incurred on or after 7 July 2026, for operating the mill, associated with—(a)the payment of salaries of employees or the costs of contractors; or(b)the purchase of goods and services, including, for example, transport services.The nature of the assistance that may be given under the scheme is the provision of an interest-free loan to ICSM for the purpose under section 2.(1)The amount of the loan under the scheme is the amount the authority decides is reasonably necessary for ICSM to pay—(a)the working capital expenses for operating the mill during and after the 2026 crushing season; and(b)if the authority considers adequate provision has been made for the payment of the working capital expenses for operating the mill for the 2026 crushing season—the mill modernisation costs.(2)However, the amount of the loan must not be more than $9m.ICSM is eligible for the loan under the scheme if the authority is satisfied—(a)ICSM requires the loan for the purpose under section 2; and(b)ICSM, if given the loan, will be able to use an amount of the loan to pay the working capital expenses for operating the mill for the remainder of the 2026 crushing season; and(c)ICSM intends to use any surplus liquid reserves or normal credit sources up to normal credit limits, in conjunction with the loan, to maintain business operations for the remainder of the 2026 crushing season; and(d)subject to adequate provision being made for the use of an amount of the loan under paragraph (b)—ICSM will also use an amount of the loan to make capital investments for the modernisation of the mill.(1)ICSM must apply to the authority for the loan under the scheme.(2)The application must—(a)be in the form approved by the authority; and(b)be accompanied by any other documents stated in the approved form.(3)If the authority considers further information or documents are required for deciding the application, the authority may give ICSM a written notice requesting information or a document be given to the authority within a stated period of at least 10 business days.(4)If ICSM does not comply with the request within the stated period, or a longer period allowed by the authority, ICSM is taken to have withdrawn the application.(1)The authority must consider the application for the loan under the scheme and decide to approve, or refuse to approve, the application.(2)The authority may approve the loan for an amount that is less than the amount applied for.(3)The authority may approve the payment of the loan to ICSM by instalments of amounts, and at intervals, decided by the authority.(4)If the authority decides to refuse to approve the application or to approve the loan for an amount that is less than the amount applied for, the authority must give ICSM written notice of the decision and the reasons for the decision.(1)The term of the loan under the scheme is the term decided by the authority up to a maximum of 3 years.(2)ICSM must make repayments of the principal in the amounts, and at the intervals, decided by the authority.(1)If the authority approves the application for the loan under the scheme, the authority must prepare an agreement (the loan agreement) setting out the conditions on which the loan is provided, including, for example, when and how ICSM must repay the amount of the loan.(2)Without limiting subsection (1), the authority may include in the loan agreement a condition requiring ICSM to give security for the loan that the authority considers ICSM can reasonably give, having regard to the purpose of the assistance under section 2(a).(1)Before ICSM receives an amount under the loan, ICSM must enter into the loan agreement with the authority.(2)ICSM may use an amount under the loan to pay only—(a)the working capital expenses for operating the mill during or after the 2026 crushing season; or(b)the mill modernisation costs.(3)ICSM must not use an amount under the loan for—(a)refinancing another loan; or(b)paying a secured creditor; or(c)buying an asset not directly related to the operation or modernisation of the mill.(4)ICSM must consent to the authority conducting an audit to allow the authority to verify that amounts lent to ICSM under the scheme have been used—(a)in compliance with subsections (2) and (3); and(b)in accordance with any relevant conditions of the loan agreement.(5)If requested by the authority, ICSM must—(a)give the authority a report about the way in which the provision of the loan has supported, or is supporting, ICSM to—(i)operate the mill during or after the 2026 crushing season; or(ii)improve the efficiency of the mill; and(b)consent to the authority disclosing the report to the primary industries chief executive for the purpose of evaluating the operation of the scheme.(6)The loan is subject to—(a)the conditions mentioned in subsections (1) to (5); and(b)the conditions mentioned in the loan agreement.(7)In this section—primary industries chief executive means the chief executive of the department in which the Sugar Industry Act 1999 is administered.