The federal government's agricultural department have reported adjustments to some elements, for farmers on the household allowance scheme.
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The Australian Government has made significant adjustments to the Farm Household Allowance (FHA) since it was introduced on 1 July 2014. On 27 September 2019 the Prime Minister announced a further change incorporating radical simplification of the application process and key policy settings:
a significant redesign of the application process, including allowing farming couples to share their information
changing the time limit on payment from four years in total to four in every ten years (starting 1 July 2024)
removing the requirement for business income reconciliation
paying one rate of payment rather than fortnightly fluctuations
changing the off-farm income offset and treating income from agistment as primary production income
a simplified assets test
a strengthened case management approach to better support farmers in hardship through periods of financial difficulty, including increasing the Activity Supplement to $10,000 over the recipient's total time on the payment.
Making adjustments that better capture a farmer's circumstances means that everyone can focus on the positive benefits of structured case management. We don't want people who are so overwhelmed by their situation that they can't see a path forward.
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These changes will simplify and modernise the package of assistance:
There will be less effort up front when a person applies. Couples will only have to tell their story once. This will be a significant step in farmer assistance because 80 per cent of FHA recipients have a partner. This one change is expected to have a substantial positive effect on claim handling times.
The system of farmers estimating their income has proven confusing. So we're stopping that and we'll have a checking process in the back-end, like other social security payments.
Rather than having payments fluctuate we're taking an all-or-nothing approach. As long as the income is under the threshold they'll get their full rate of payment. This gives certainty. It also give them the best chance of longer-term recovery.
A simplified assets test sets the bar pretty high-at $5.5 million net assets.
In terms of income from the sale of stock, since 1 July 2019 profits from the forced disposal of livestock do not affect the payment, as long as they're put into a Farm Management Deposit within 42 days. The definition of a 'forced disposal' aligns with the Australian Taxation Office definition. Profit from the sale of stock that is part of the person's usual business practices, is counted in the usual way.
