Drought Assistance

Current Exceptional Circumstances declarations end on the 31st March 2009, unless extended by government.

Drought assistance includes relief payments from Centrelink and interest rate subsidies on eligible farm debts through state authorities. Victorian farmers would apply to Rural Finance and NSW farmers would apply to the Rural Assistance Authority.

Relief payments from Centrelink are assessed on criteria of off farm assets and off farm income tests, although $20,000 of off farm income earned through the wages system for single or partnered applicants is exempt from assessment.

Interest Rate Subsidies are a one off lump sum payment of 80% of the interest paid on eligible farm debts for the extent of the drought declaration period. The allowable amount of off farm assets is $750,000.

While both relief payments and interest rate subsidies are part of drought assistance they are independently assessed and a farmer/farming family may be eligible for both, one or the other or none, depending on individual circumstances.

Other assistance also includes-

Professional Advice and Planning Grants up to $5,500.
Irrigation Management Grants of $20,000 for a range of activities to improve irrigation systems, improve efficiency or to conserve water use. The Grants are available to claim until the 31st March 2009.
EC Exit Grants of up to $150,000 for farmers in EC declared areas wishing to leave farming and a further $10 000 is available for advice and re-training, and up to $10 000 for relocation expenses is also available to those who take up the Grant.
Small Block Irrigators Exit Grant of up to $150,000 for small block irrigators in the Murray Darling Basin, wishing to leave irrigation farming. Recipients can also claim up to $10,000 for the removal of permanent plantings and other above ground production related irrigation infrastructure and up to $10,000 for professional advice or training. The grant is contingent on selling all permanent water entitlements to the Australian Government through the Restoring the Balance in the Murray Darling Basin Program.

Drought assistance for rural small business has been extended to include small businesses located in towns that are substantially reliant on farm income, have a population of 10 000 or less, and are in an EC area.

Assistance is similar to what is provided to farmers, with relief payments through Centrelink and interest rate subsidies from state authorities in Victoria and NSW.

It should be noted that most Exceptional Circumstances payments are treated as taxable income.