THE Coalition has announced enhancements to the Farm Household Allowance (FHA) assets test concerning water, using a “Minister’s Rule”.
Agriculture and Water Resources Minister Barnaby Joyce said he had made the ruling which would now enable up to $1.1 million in net water assets to be exempt from the FHA assets test.
Mr Joyce said farm businesses applying for the FHA would benefit from clearer and simpler rules about the treatment of water assets, making it easier for farmers in hardship to access the payment.
“The Coalition Government believes farm irrigation assets should be considered as a farm asset when it comes to applying for assistance, however unfortunately this has not always been the case,” he said.
“Water should be treated in the same light as land, equipment and machinery that are needed to run a farm business and from now on water will be treated that way.
“I have taken this action to strengthen the FHA in the same way I amended the Allowance earlier this year to exempt farmers’ mandatory shares in their co-operative from the non-farm assets test.
“In time I intend amending the Farm Household Support Act 2014 to clearly and accurately recognise water as a farm asset.”
Mr Joyce said the Minister’s Rule exemption - announce yesterday - provided an immediate solution for farmers in need, including dairy farmers impacted by retrospective price cuts and would enable more farm businesses to be eligible for the FHA payment.
“We have heard the concerns people have and we are doing our best to ensure those who need it can get this support,” he said.
Victorian Nationals Senator Bridget McKenzie said the Coalition government was responding to concerns from farmers in need, including those who attended Dairy Roundtable meetings she chaired in Congupna and Tangambalanga in northern Victoria this week.
“The Coalition believes the FHA should be available to those facing hardship who need it,” she McKenzie said.
“There was no Farm Household Allowance before the election of the Coalition government.
“Under policies before FHA, dairy farmers affected by retrospective price cuts would have had no choice but to sell down vital farm assets to be eligible for social security assistance just to put food on the table.
“The Deputy Prime Minister’s decision is another example of decisive action to help farmers, like the swift implementation of the Dairy Support Package and underlines our commitment to those who are doing it tough.”
Fast facts:
There are currently more than 4700 farmers throughout Australia receiving assistance through the FHA - over 6800 have received support since it began in 2014.
On average, the government is paying out $1.13 million per week to farm families in FHA.
FHA assists eligible farmers and their partners who are experiencing financial hardship to improve their long-term financial situation.
FHA provides up to three years of income support, which is designed to help recipients meet basic household needs and offers the opportunity for them to take steps to improve their circumstances.