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Dairy Industry Adjustment Package
The Australian Government's Dairy Industry Adjustment Package (DIAP) was developed to assist the dairy industry adjust from the previous State-regulated drinking milk arrangements to the commercially focussed environment that became effective on 1 July 2000.
The dairy industry sought government support during this adjustment period to ensure that uncertainties and short-term declines in income did not destabilise the industry and adversely impact on its longer-term growth potential.
The Dairy Industry Adjustment Package comprises four programs:
- the Dairy Structural Adjustment Program– providing $1.63 billion in payments for eligible dairy producers, administered by the Dairy Adjustment Authority;
- Supplementary Dairy Assistance - providing an additional $139 million in payments, administered by the Dairy Adjustment Authority;
- the Dairy Exit Program- providing an optional tax-free exit payment of up to $45,000 for eligible dairy producers wishing to leave the industry, administered by Centrelink. The Dairy Exit Program ended on 30 June 2002 and has been replaced by dairy type grants, part of the Farm Help Re-establishment Grants scheme; and
- the Dairy Regional Assistance Program– providing $65 million to assist regional communities to adjust to dairy deregulation, administered by the Department of Transport and Regional Services. This program has now been completed. Alternative funding is available to eligible applicants through the Regional Partnerships Program
The Government's Dairy Industry Adjustment Package is funded by an 11 cents per litre levy on retail sales of market milk, which is currently estimated to run until mid 2010.
Last reviewed: 29 May 2007
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