Farm Household Allowance

The Farm Household Allowance (FHA) program provides assistance to farming families experiencing financial hardship for any reason.

The program provides eligible farmers and their partners with a package of assistance that includes:

• up to four years of fortnightly income support (in every 10 year period)
• ancillary allowances such as Pharmaceutical Allowance, Telephone Allowance, Rent Assistance and Remote Area Allowance
• a professional financial assessment of the farm business (worth up to $1,500)
• funding to help develop skills, access training and pay for professional advice (up to $10,000 and can include reasonable travel and accommodation to undertake training).
• regular support of a case manager.

From 2019, the Australian Government simplified the FHA application process and key policy settings, in response to an independent FHA review that was undertaken in 2018.

Read the outcome of the Review.

The Australian Government’s response to the Review includes a number of key amendments to legislation and simplification of processes.

Amendments include:

• exempting the profit from the forced disposal of livestock that is put into a Farm Management Deposit, from t
• exempting the profit from the forced disposal of livestock that is put into a Farm Management Deposit, from the income test
• lifting the off-farm income threshold to $100,000 and allowing anyone running at a loss to access the offset
• treating income from directly–related businesses (eg. agistment) as primary production income
• redesign of the application process – a new online claim that can be used by both members of a couple
• paying the maximum rate only (or nothing if the income is above the thresholds)
• simplifying the assets test to remove the distinction between farm and off-farm assets. There is a single threshold of $5.5 million net assets for singles and couples
• changing the definition of who can complete the Farm Financial Assessment. The definition has been expanded to include farm consultants and Rural Financial Counsellors
• increasing the amount of the Activity Supplement to $10,000 in a person’s lifetime and allowing funds to be used for reasonable travel and accommodation to undertake training
• removing the requirement for business income reconciliation (BIR) from 1 July 2020.
• he income test
• lifting the off-farm income threshold to $100,000 and allowing anyone running at a loss to access the offset
• treating income from directly–related businesses (eg. agistment) as primary production income
• redesign of the application process – a new online claim that can be used by both members of a couple
• paying the maximum rate only (or nothing if the income is above the thresholds)
• simplifying the assets test to remove the distinction between farm and off-farm assets. There is a single threshold of $5.5 million net assets for singles and couples
• changing the definition of who can complete the Farm Financial Assessment. The definition has been expanded to include farm consultants and Rural Financial Counsellors
• increasing the amount of the Activity Supplement to $10,000 in a person’s lifetime and allowing funds to be used for reasonable travel and accommodation to undertake training
• removing the requirement for business income reconciliation (BIR) from 1 July 2020.

Services Australia is processing the outstanding reconciliation cases. To be eligible for the waiver, all taxation paperwork for the relevant financial year(s) must be given to Services Australia before 30 June 2023. This includes:

• Personal tax returns
• Partner’s personal tax returns (if you have a partner)
• Business balance sheets for 30 June
• Business tax returns
• Business profit and loss statements
• Business depreciation schedules.

Do you have questions? Contact the Farmer Assistance Hotline on 132 316 between 8am and 8pm Monday to Friday.

Eligibility

Check if you are eligible for Farm Household Allowance.

You:

• are a farmer
• are an Australian citizen or permanent resident
• are at least 16 years of age
• have a right or interest in land and use it for a farm enterprise - this includes leasing and sharefarmers but excludes farm workers.

Your farm:

• is in Australia
• has a significant commercial purpose or character.

You must:

• contribute a significant part of your labour and capital to the farm enterprise (this may exclude some younger generation farmers in multi-generational family operations where they have not contributed any capital)
• enter into an activity agreement to make changes to improve your medium and long-term financial security (called a financial improvement agreement), or have one in place already.

You can apply as a farmer, or as a farmer’s partner (if you are not involved in the farm).

Each application is assessed on a case-by-case basis.

You cannot receive FHA if you:

• receive other pensions or social security benefits and are not prepared to give them up
• have already received the payment for 4 years (in the 10 year period)
• do not meet the criteria in the legislation (explained in the guidelines.

Read the detail in the FHA factsheets or the FHA guidelines.

You cannot receive FHA if you:

• currently receive other pensions or social security benefits
• have already received the payment for 4 years (in the 10 year period)
• do not meet the criteria in the guidelines.

Read the detail in the FHA factsheets or the FHA guidelines.

Payments and support

You can get Farm Household Allowance for up to 4 years (1,460 days) at any time between 1 July 2014 and 30 June 2024. You can apply for your second tranche of four years from 1 July 2024. FHA gives you time to improve your circumstances. You do not have to receive all payments in one go. You can stop and start your payment as many times as you like. Stopping and deferring your payments can save them up for future hardship. You will also get ongoing support from your own:

• Farm Household Case Officer (FHCO)
• Rural Financial Counsellor (RFC) (if you choose).

Apply

Applications and payments are managed by Services Australia.

Call the Farmer Assistance Hotline on 132 316.

Learn more about Farm Household Allowance or read the FHA factsheets.