Federal Assistance

Agriculture – Advancing Australia (AAA)
Exceptional Circumstances
Natural Disaster Relief Arrangements
Centrelink

The Farm Management Deposits Scheme is another form of Federal assistance which has been described in the section on Savings and Investments. To go to that section CLICK HERE.

Federal Government-funded assistance to farmers in difficult circumstances consists of the following:

• Agriculture – Advancing Australia (AAA)
• Rural Financial Counselling Service
• Farm Help (Supporting Families through Change) package
• Exceptional Circumstances
• Natural Disaster Relief Arrangements
• Centrelink
  • Financial Information Service
  • Financial Counselling
  • Crisis Payment
  • Special Benefit
• Disaster Relief Payment

The Farm Management Deposits Scheme is another form of Federal assistance which has been described in the section on Savings and Investments. To go to that section CLICK HERE.

Agriculture – Advancing Australia (AAA)

Agriculture – Advancing Australia (AAA) is a package of Commonwealth programs announced in September 1997 that is designed to help primary producers in agriculture, fishing, forestry and processed food industries become more competitive, sustainable and profitable.

A number of programs within this package are relevant to crisis circumstances. These are:

• the Rural Financial Counselling Service
• the Farm Help (Supporting Families through Change) package
• the Farm Management Deposits scheme

• Rural Financial Counselling Service (RFCS)

  The RFCS is a group of Independent Financial Counsellors who provide free, independent financial advice for farming families and small rural businesses faced with difficult decisions. Your rural financial counsellor is trained to help you and your family identify and assess the various options available. For more information see the RFCS website at www.affa.gov.au/financialcounselling.

  Financial counsellors can help primary producers, fishing enterprises and small rural businesses in rural areas who are experiencing financial hardship and have no other sources of financial advice with:

  • assessment of current financial position and cash flow budgeting;
  • reviews of contracts with lending institutions, loan applications and communication with lenders;
  • information on government assistance schemes including other components of the AAA package;
  • information on, and referral to, Centrelink and other professional counselling services;
  • assistance with decision making in relation to your rural enterprise, including succession planning.

  
  It's confidential:
  Information given to the financial counsellor is treated in the strictest confidence.

  You make the decisions:
  It is ultimately up to the family to choose which option is right for them. The financial counsellor will help you develop some options and give support with your decision making.

  Making contact:
  To see the directory of financial counsellors call 1800 686 175 and speak to an AFFA staff member, or CLICK HERE to go to the appropriate section on the AFFA website.

• Farm Help (Supporting Families through Change)

  Centrelink administers the program, which provides income support and professional advice to the farm sector and re-establishment of assistance to farmers who wish to leave the industry.

Key features

• Income support at the Newstart Allowance (subject to income and off-farm assets tests) for up to 12 months. You don't have to satisfy an "activity test" or put your farm on the market to qualify. It is a condition, however, that you seek professional advice on the financial viability of your farm within 3 months of joining the program.
• Up to $3,000 to obtain professional advice, including legal, business management, personal or career counselling.
• Personal assistance from a Centrelink Farm Help officer to help you develop a plan to address your present situation and best position the family for the future.
• A re-establishment grant of up to $45,000 on the sale of the farm, subject to an assets test and the following conditions:
  - you must sell the farm within 12 months of joining Farm Help or ceasing to receive income support;
  - you may have up to $100,000 in net assets after selling the farm to qualify for the maximum grant. However:
  - the grant will reduce by $2 for every $3 in assets above this threshold;
  - the value of any income support received will be deducted from the grant;
  - you must apply to join Farm Help before you sell your property.

• A $3,500 retraining grant is available to re-establishment grant recipients and/or their partner, to help prepare for a career outside of farming.

 

Eligibility

• You must be a farmer when you apply and have been so for a continuous period of at least two years beforehand;
• You must be unable to borrow further against your assets and you will need to provide a letter from your bank confirming this;
• You must still be in control of the farm.

 

Applications

Applications for re-establishment grants and income support will close on 30 November 2003. Forms are available from your local Centrelink office.

Further information

Contact the Centrelink Farmer Assistance Freecall Line: 1800 050 585.
Foreign Language Service: 13 1202.

Exceptional Circumstances

Exceptional Circumstances is part of the Federal Coalition Government's "Agriculture - Advancing Australia" package and is designed to provide short term targeted support to assist long term viable farm businesses to cope with the adverse impacts of exceptional events, including drought.

Communities or peak industry groups must approach their State or Territory Government in the first instance. When the State or Territory Government is confident that the event and the case fully meet EC criteria, it can apply to the Commonwealth Minister for Agriculture, Fisheries and Forestry for EC declaration. Producers cannot lodge EC applications directly with the Commonwealth Government.

Once the Minister receives an application, s/he will request a preliminary assessment of it against the EC criteria. If a prima facie case exists s/he then refers the application to the National Rural Advisory Council (NRAC) - an independent panel of farmers, agribusiness and industry experts – to determine whether a full case has been made against the EC criteria. NRAC provides a recommendation to the Minister on whether the application region should be EC declared. The Minister is ultimately responsible for declaring if an area is experiencing exceptional circumstances, however s/he must first obtain Cabinet approval as funding for EC declarations is agreed on a case-by-case basis.

Applications for EC must demonstrate that the event:

• was rare (a one in 20-25 year event) and severe;
• resulted in a severe downturn in farm income over a prolonged period (e.g. more than 12 months) for a significant number of farmers in a region or industry; and
• was not predictable or part of a process of structural adjustment (the policy does not cover downturns in commodity prices).

After NRAC has reported to the Minister and an area is declared as experiencing exceptional circumstances, farmers in that area may be eligible for assistance in the form of family income support and/or business support.

Support is available to eligible producers for a total of 24 months. Once declared, an area will remain in EC for a period of 12 months, when it is automatically revoked. Assistance is then usually provided for a 12 month recovery period. If conditions do not improve, applicants may lodge a fresh application for EC assistance within 6 months prior to the end of the 24-month period.

The Government has exempted the income from a forced sale of livestock during the exceptional circumstances period from the income test for ECRP. This is subject to certain conditions, namely producers need to be in an area declared exceptional circumstances at the time of the forced sale and proceeds need to be deposited with a financial institution or in the Farm Management Deposit Scheme for at least 3 months.

Farmers in EC-declared areas can also access their Farm Management Deposits (FMDs) within 12 months of lodgement without losing their tax benefits. CLICK HERE for more information on Exceptional Circumstances

Current prima facie and EC-declared areas

Family Income Support

Family income support is available through the Exceptional Circumstances Relief Payment (ECRP), which is paid at the same rate as the Newstart Allowance. Eligible farmers may also receive a Health Care Card and concessions under the Youth Allowance means tests.

Family income support is available for up to two years, including the initial six months while NRAC is assessing the application. If NRAC recommends against the application, the family income support ends after six months. If NRAC recommends that a case has been made and the Minister declares EC, income support continues for a total of two years, including the six months of income support while NRAC completes the assessment.

EC welfare support is made available in the form of an Exceptional Circumstances Relief Payment (ECRP) and it is subject to an income and off-farm assets test. ECRP, funded by the Commonwealth, is paid at the same rate as the community wide welfare system, or the Newstart Allowance. ECRP recipients are also eligible for a Health Care Card and concessions from the Youth Allowance. To qualify a person must be a farmer, over 18 years old, an Australian resident and be identified by the State Rural Adjustment Authority (RAA) as living in an EC area.

For more information on how to apply for interim income support contact Centrelink on freecall 1800 050 585 or download an application form from the Centrelink website.

Business Support

EC business support—in the form of interest rate subsidies—is funded by the Commonwealth and the State Governments. The support is administered through the State/Territory Rural Adjustment Authorities. Assistance is available to farmers who are considered profitable in the long term but are experiencing financial difficulties due to exceptional circumstances. The maximum 50 per cent subsidies are available for up to 24 months.

How to Apply

At particular times, certain States/Territories may have specific types of support available in designated areas. For more information about how to apply for EC, you should first call your State/Territory or agency as follows:

Victoria - Department of Natural Resources and Environment - 13 61 86
New South Wales - Department of Agriculture - 1800 814 647
South Australia - Primary Industries and Resources - 1800 182 235
Western Australia - Department of Agriculture - 1800 198 231
Queensland - Department of Primary Industries - 13 25 23
Tasmania - Department of Primary Industries, Water and Environment - 1300 368 550
Northern Territory - Department of Business, Industry & Resource Development - 1800 193 111.

Natural Disaster Relief Arrangements

Note: Once a natural disaster has been declared, the relevant State/Territory Government seeks reimbursement from the Commonwealth under the above criteria. Individuals wishing to seek assistance will need to contact in the first instance their respective State/Territory emergency response agency. It is included here so that farmers will have information useful for their enquiries to the relevant state/territory agency. Note that at the state/territory level the name may change slightly, for example in NSW it is called the Disaster Relief Scheme, in Victoria the Natural Disaster Relief Scheme, and in QLD the Natural Disaster Relief Assistance scheme.

This is administered by the Federal Department of Transport and Regional Services.

The NDRA apply to any one of, or a combination of, the following natural phenomena: bushfires, cyclones, earthquakes, floods, storms/stormsurge and/or landslides. These arrangements do not apply to disasters caused by people or accidents.
Eligible relief measures provided by the States and Territories that qualify for Commonwealth assistance under NDRA are:

• grants for relief of ‘personal hardship and distress' (PHD), such as the provision of emergency food, clothing and accommodation, essential housing repairs, or the replacement of essential household goods - eligibility for which may vary between States and Territories;
• concessional interest rate loans to farmers, small business operators and voluntary non-profit bodies to replace assets that have been significantly damaged in an eligible disaster. Recipients must have no reasonable access to commercial finance and, in the case of farmers and small business operators, have reasonable prospects for long-term viability;
• payments to restore or replace essential public assets which have been damaged as a direct result of an eligible disaster to a pre-disaster standard; and
• payments for providing financial and psychological counselling to people who have experienced an eligible natural disaster.

Commonwealth financial assistance is not normally provided until after a natural disaster has occurred and is calculated on the basis of:

• half of State and Territory outlays incurred in providing PHD relief for a specific disaster where State or Territory disaster expenditure exceeds the small disaster threshold (currently $200,000) in respect of each disaster;
• half of State or Territory expenditure on eligible relief measures above a threshold base amount (0.225 percent of State or Territory revenue) up to the second threshold (1.75 times the first threshold) where the Commonwealth reimburses three quarters of all further expenditure;

Over the last five years, the Commonwealth has provided $384 million in natural disaster relief to the States and Territories. In 2000–01, $117 million was provided for relief directed to natural disasters such as the extensive flooding in central and western Queensland, the central Northern Territory and northern Western Australia.

Centrelink

Centrelink offers a variety of general services and programs to people that find themselves in need. These are not necessarily directed at farmers in crisis and so depending on your circumstances you may or may not be eligible for one or more of the following.

Centrelink Farmer Assistance Freecall Line: 1800 050 585

Financial Information Service

Centrelink's Financial Information Service is a free and independent service available to anyone. You do not have to be getting a payment from Centrelink to use this service. Any personal information given to Financial Information Service Officers will be treated as confidential. However, you should be aware that the information can also be used to adjust your rate of payment if it is incorrect.

Centrelink Financial Information Service (FIS) Officers can provide you with free, independent and expert information in a friendly environment so that you are better equipped to:

• recognise and pursue your financial options;
• make better financial decisions;
• understand investment products and how they work;
• approach/undertake your own financial planning;
• recognise when you might need financial advice, and how to go about getting it;
• understand your own financial affairs and the available options;
• understand social security payments and provisions as they may affect you; and
• understand taxation provisions and requirements as they may affect you.

The FIS Officer is not able to:

• recommend any particular type of investment;
• tell you how to invest your money-the decision on how to invest is up to you; or
• decide on the exact amount of social security or Veterans' Affairs payment you may receive (FIS Officers have no authority to do this but may be able to work out approximately what payments will be).

You can make an appointment with a Financial Information Service Officer by calling Centrelink on 13 2300. For more information CLICK HERE.

Financial Seminars
The Financial Information Service holds both financial and lifestyle seminars and workshops. Advertisements about financial and lifestyle seminars can also be found in local newspapers. Some of the topics covered in Financial Information Service seminars and interviews include:

Getting Started

• Securing Your Future
• Superannuation - Options

Financial Strategy

• Developing a Financial Strategy
• Saving - Getting Started
• Succession Planning

Retrenchment

• Superannuation - Reinvest vs Cashing-in
• Does Taxation Make a Difference?
• Balancing Today's Financial Needs with Tomorrow's Expectations

Debt Management

• Understanding Credit
• Reducing Your Mortgage

Housing

• Reducing Your Mortgage
• Insurance - Options

Investing

• A Guide to Investments
• Superannuation vs Other Investment
• Products - Your Choices
• Salary Sacrifice - Your Choices
• Compensation Lump Sums

Investments Options at Retirement

• Income Streams
• Other Investments Options
• Pension and Tax Issues

Additional Information
- To request booklets, leaflets and fact sheets about investment planning and lifestyle, telephone Centrelink on 13 2300.
- To find out more about seminars and bookings, telephone the Financial Information National Seminar Booking Service on 13 6357.

Crisis Payment

Crisis payments may be available for people in severe hardship who have been forced to leave their home. You must claim Crisis Payment within seven days of the event which made you leave home. Crisis Payment is a one-off payment, equal to one week's payment (without add-ons) of the normal Centrelink pension or benefit payment you are entitled to get. It is limited to four payments for extreme circumstances in any 12 months. You can telephone Centrelink on 13 2850 and ask to have a Crisis Payment claim form posted to you or you can pick up a form at any Centrelink Customer Service Centre.

Special Benefit

Special benefits may be available for people in severe financial need due to circumstances outside their control. For payment rates contact your nearest Centrelink Customer Service Centre for a personal assessment. The rate you are paid will depend on your individual circumstances. Generally, it will be the same rate as Newstart Allowance or Youth Allowance. Special Benefits are subject to both income and assets tests.

You may be able to register an intent to claim for Special Benefit. Telephone 13 2850, or get someone else to telephone Centrelink for you, so you can register your intent to claim as soon as possible. You can also register an intent to claim by visiting any Centrelink Customer Service Centre. To actually make a claim, you can telephone Centrelink on 13 2850 and ask to have a Special Benefit claim form posted to you or you can pick up a form at any Centrelink Customer Service Centre.

Disaster Relief Payment

Disaster relief payment is for people needing short-term relief after an officially declared disaster. The Minister for Family and Community Services can only declare a major disaster for the purposes of the Social Security Act 1991 if there has been a significant loss of life, severe illness or injury and widespread damage. Disaster Relief Payment is a one-off payment equivalent to two weeks' pension plus Family Tax Benefit and Rent Assistance at the maximum rate appropriate to your family circumstances, disregarding income and assets testing.

You need to put in your claim on a Disaster Relief claim form at the nearest Centrelink Customer Service Centre, or alternative site approved by Centrelink, within 14 days of the disaster. Telephone Centrelink on 13 28 50, or visit your nearest Centrelink Customer Service Centre for a claim form.

For more information on all of the above CLICK HERE.

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