Purpose:

This Act aims to improve the financial situation of farmers and their partners who require assistance by providing them with farm household allowance, funding for activities, and funding for farm financial assessments.

Objectives:

• Provide farm household allowance for up to 4 years in each specified 10-year period.
• Provide funding (activity supplement) for undertaking activities such as receiving training or advice, or undertaking study.
• Provide funding (farm financial assessment supplement) to pay for an assessment of a person’s and a relevant farm enterprise’s financial position.
• Provide additional funding (FHA supplement) for persons receiving farm household allowance between 1 September 2018 and 1 June 2019.
• Provide relief payments for persons who have received 1,460 days of farm household allowance before 1 July 2020, or in other prescribed circumstances.

Key Provisions:

• Farm Household Allowance (FHA) Qualification: Sets out criteria for farmers and their partners to qualify, including contributing significant labour and capital to a farm enterprise with a significant commercial purpose, being an Australian resident, and meeting a 4-years-or-less payment duration requirement within a 10-year period.
• Financial Improvement Agreements (FIAs): Requires applicants or recipients of FHA to enter into and comply with an agreement outlining activities for the activity test, which must be suitable for the person and approved by the Secretary.
• Activity Test: Specifies that recipients must satisfy the activity test by undertaking approved activities such as training, advice, study, or seeking/undertaking paid work, unless exempted.
• Exemptions from Activity Test: Details circumstances under which individuals may be exempt from the activity test, including essential farm activities, domestic violence, caring for disabled children, temporary incapacity, Defence Reserve service, and prenatal/postnatal periods.
• Assets Test: Stipulates that FHA is not payable if the combined value of a person’s farm and non-farm assets exceeds $5.5 million, defining what constitutes farm and non-farm assets.
• Overseas Portability: Allows FHA payments to continue for specified periods (generally up to 6 weeks, with extensions for certain circumstances) while a person is temporarily absent from Australia.
• Rate Calculation: Defines how the rate of FHA is calculated, generally aligning with JobSeeker Payment rates for those over 22 and Youth Allowance rates for those under 22, with specific modifications.
• Compliance with Obligations: Outlines consequences for qualification failures (e.g., failure to enter an FIA, failure to notify circumstances, failure to satisfy activity test) and conduct failures (e.g., misconduct in activities, refusing suitable employment, foreseeably becoming unemployed), which can result in non-payment or cessation of FHA.
• Activity Supplement: Provides additional funding for FHA recipients to undertake approved activities specified in their FIA.
• Farm Financial Assessments (FFAs): Authorises the Secretary to require a person to have an independent farm financial assessment conducted to evaluate their financial position and options for improvement.
• Farm Financial Assessment Supplement: Provides funding to cover the cost of a farm financial assessment for qualified persons.
• FHA Supplement: Provides additional lump sum payments to FHA recipients during specific qualifying periods in 2018-2019.
• Relief Payments: Provides lump sum payments for persons who have reached the 1,460-day limit for FHA before 1 July 2020, or under other prescribed circumstances.
• Integration with Social Security Law: Specifies that the Social Security Act 1991 and Social Security (Administration) Act 1999 apply, with modifications, to claims, payments, and reviews relating to assistance under this Act.
• Debt Waiver: Allows for the waiver of certain FHA debts incurred between 1 July 2015 and 1 July 2020.

Evidence of Compliance Requirements For Agricultural Organisations:

• Entering and Complying with a Financial Improvement Agreement (FIA):
  • Action: A person claiming or receiving farm household allowance (FHA) must indicate in writing willingness to enter into and comply with an FIA, or have an FIA in force (Sections 8(g), 9(i)).
  • Action: Must negotiate and enter into an FIA within a period of not more than 28 days specified in a written notice from the Secretary (extendable once by no more than 28 days) (Section 14(3)©, (4)).
  • Action: Must undertake activities for the purposes of the activity test as specified in the FIA (Section 15(1)(a)).
  • Documentation: The FIA must be in a form approved by the Secretary (Section 14(5)).
• Notification of Circumstances Preventing or Affecting Compliance:
  • Action: Must notify the Secretary of any circumstance preventing or affecting the person’s capacity to comply with FIA requirements (Section 18(1)).
  • Time frame: Notification must occur within 14 days of the circumstance occurring (Section 18(2)).
• Satisfying the Activity Test:
  • Action: Must comply with FIA requirements to undertake activities such as:
    • Participating in training (Section 19(1)(a)).
    • Receiving advice (Section 19(1)(b)).
    • Undertaking study (Section 19(1)©).
    • Actively seeking, or being willing to undertake, suitable paid work in Australia (Section 19(1)(d)).
    • Undertaking any other approved activity (Section 19(1)(e)).
  • Measurement Standards for Training/Advice:
    • Training must be provided by a registered training organisation or a person/body approved in writing by the Secretary (Section 20(1)).
    • Advice must be provided by a person with a relevant tertiary qualification recognised by a professional institution or body, who is independent and has no right or interest in the farm or assets of the recipient/partner/farm enterprise (Section 20(3)).
  • Documentation for Temporary Incapacity Exemption:
    • If temporarily incapacitated, a medical certificate in a form approved by the Secretary must be given, stating diagnosis, prognosis, level of incapacity (cannot undertake activities for more than 8 hours/week), and period of incapacity (Section 31(1)(e)).
• Having a Farm Financial Assessment Conducted:
  • Action: If required by the Secretary, must have a farm financial assessment conducted within the period specified in a written notice (extendable once by a specified period) (Section 85(2)(d), (3)).
  • Documentation: The assessment must be in a form approved by the Secretary (Section 85(4)).
  • Measurement Standards: The assessment must be conducted by a person who is independent (no right or interest in the farm/assets) and has appropriate qualifications or expertise (Section 86).
• Claiming Activity Supplement:
  • Action: Must make a claim for the supplement within 2 months of the service provider’s invoice relating to the activity (Section 80(1)(g), (2)(f)).
  • Documentation: At the time of lodging the claim, must provide the Secretary with evidence or a declaration in an approved form that:
    • If training/advice, the activity was undertaken in accordance with Section 20 (or will be) (Section 80(1)(h)(i), (2)(g)(i)).
    • If direct payment to the person is elected, evidence that the service provider for the activity has been paid (Section 80(1)(h)(ii), (2)(g)(ii)).
• Claiming Farm Financial Assessment Supplement:
  • Action: Must make a claim for the supplement within 2 months of the invoice for the assessment being provided (Section 87(d)).
  • Documentation: At the time of lodging the claim, must provide the Secretary with evidence in an approved form that:
    • The assessment was conducted in accordance with Section 86 (Section 87(e)(i)).
    • If direct payment to the person is elected, evidence that the person who conducted the assessment has been paid (Section 87(e)(ii)).
    • The assessment has been provided to the Department in the approved form (Section 87©).
• Record-Keeping: Implied by requirements for invoices, certificates, and evidence for claims and exemptions.
• Reporting Requirements: The Secretary must provide an annual written report on the administrative operation of the Act to the Minister after 30 June each year (Section 104).
• Inspection or Audit Requirements: Not specified in document.

Metadata Keywords:

Agriculture, Farm Household Allowance, Financial Assistance, Farmers, Rural Support, Legislation, Australia, Compliance, Social Security, Financial Improvement

Publication Information:

Compilation date: 8 April 2022 Includes amendments up to: Act No. 32, 2022 Registered: 5 May 2022

Agricultural Industry Alignment:

Beef & Veal, Chicken, Coarse Grains, Cotton, Dairy, Eggs, Fisheries, Horticulture, Oilseeds, Pig, Sheep Meat, Sugar, Wheat, Wine, Wool.

Date Added to database:

This document was parsed and added to the database on 25-07-2025

URL:

https://www.legislation.gov.au/C2014A00012/2022-04-08/2022-04-08/text/original/pdf →