“Anything that can help make it simpler for landholders to access funding and demonstrate their eligibility has to be a good thing, because it allows cash to flow into our communities.”
That’s the summation by Western Queensland Drought Appeal spokesman David Phelps of the news that the federal government has moved to speed up Farm Household Allowance payments and more accurately treat farm assets for eligibility.
Deputy Prime Minister and Minister for Agriculture, Barnaby Joyce, said the Coalition wanted to ensure the FHA continued to meet its intent, supporting farmers in hardship to get back on their feet.
Mr Phelps said while western Queensland communities had been buoyed by winter rain, the lack of anything substantial so far this summer had “put the chocks under any enthusiasm”.
“They’ve slipped back to a waiting game and early indications from our latest survey are that there’s certainly not been any financial improvement.”
Mr Joyce said amendments to the Farm Household Support Act 2014 had been introduced to more precisely define the assets used in the running of farm businesses, such as water assets and shares in a farming cooperatives, when assessing eligibility.
“The amendments address the issue of such assets, necessary for the operation of the farm enterprise, falling within the definition of non-farm asset, which has stricter assets limits and can prevent some rightfully eligible farm businesses from receiving payment.
“I acted in December with an immediate solution, bringing in a Minister’s Rule which enabled up to $1.1 million in net water assets to be exempted from the FHA assets test.
“They will be now be treated in the same light as land, equipment and machinery that are needed to run a farm business when determining eligibility.
The legislation also removes the requirement to serve an Ordinary Waiting Period or Liquid Assets Waiting Period before people can receive payment, meaning landholders in need can receive payments at the earliest possible opportunity.
According to Mr Joyce, the government has also listened to the concerns of farmers through the Dairy Roundtable process, “who had to wait too long to receive payment”.
“We have acted where we could in the legislation, and work is continuing to improve the efficiency of FHA application process by the Department of Human Services.”
The FHA is designed to help recipients meet basic household needs and provides farming families with the opportunity to take steps to improve their financial circumstances.
“Before the Coalition introduced the FHA in 2014, there was no support payment generally available to farmers in hardship outside of the exceptional circumstances,” Minister Joyce said.
“Exceptional circumstances was abolished by the former Labor government, which let farmers starve if their businesses were in temporary hardship.”
More than 7000 claims have been granted since the FHA was introduced, giving farmers access to one-on-one case support, activity supplements and income support.
For people who have been on FHA since it was introduced in 2014, their three-year eligibility period is ceasing on June 30.
As covered by the Queensland Country Life, rural financial counselling bodies are gearing up as a result, for increased enquiry from people exploring other options to improve their circumstances.
For more information on the FHA visit http://www.agriculture.gov.au/ag-farmfood/drought/assistance/farm-household-allowance
FAST FACTS
- 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.
- On average, the government is paying out $1.16 million per week to farm families in FHA.
- Like other social security payments, there are waiting periods until people can access FHA, unless they are granted an exemption.
- A person’s ordinary waiting period is seven days from either the start date (being granted payment) or end date of any liquid assets waiting period.
- A person must serve a liquid assets waiting period, where the value of their liquid assets exceeds the relevant threshold of $5,500 if the applicant is single and $11,000 if the person is partnered or single with a dependent child. A person’s liquid assets waiting period is a maximum of 13 weeks from the day the applicant applied for FHA.
Sally Gall
Based at Blackall, CW Qld, where I've raised a family, run Merino sheep and beef cattle, and helped develop a region - its history, tourism, education and communications. Get in touch at 0427 575 955 if you've got a story idea for me.
Based at Blackall, CW Qld, where I've raised a family, run Merino sheep and beef cattle, and helped develop a region - its history, tourism, education and communications. Get in touch at 0427 575 955 if you've got a story idea for me.
