On 26 February 2014 the Australian Government announced additional measures offering financial, social and mental health support to farming families, farm businesses and rural communities suffering from drought.

A summary of these new support measures are below. Please call your Moore Stephens advisor if you require assistance in securing any or these new support elements, or if you would like further information. You can also find links to all elements of this new support program on the Australian Government website.

  1. Interim Farm Household Allowance (Interim FHA)

Designed to help farm families with their daily living expenses:

  • Is available to eligible farmers Australia-wide, without the need for a drought declaration.
  • Will be paid fortnightly at a rate equivalent to Newstart Allowance.
  • Asset test has different limits to that of the existing Transitional Farm Family Payment, so that more farmers will qualify.
  • Payments for new applicants commence from 3 March 2014.
  • Existing Transitional Farm Family Payment recipients will be automatically transferred to this Interim FHA as at 28 February 2014 to ensure there is no break in payments.
  • This Interim FHA will be available until the Permanent Farm Household Allowance is implemented on 1 July 2014.
  • Recipients of the Interim FHA who wish to claim the Permanent Farm Household Allowance will receive payment until 30 September 2014 or until their application for the Permanent Farm Household Allowance has been finalised, whichever is earlier.

Additional information on the Interim FHA.

  1. Drought Concessional Loans Scheme

$280 million is available for eligible drought-affected farm businesses for debt restructuring, operating expenses and drought recovery activities:

  • Loans of up to $1 million, or 50 per cent of the farm business's debt, whichever is lower.
  • Application requirements are currently being finalised, as a priority, by the Australian Government and relevant jurisdictions.

Additional information on the Drought Concession Loan Scheme.

  1. Additional funding for water-related infrastructure rebates

$12 million in funding is available for drought-affected farmers in Queensland and New South Wales:

  • $6 million available to Queensland, $4 million available for New South Wales.
  • Will supplement existing emergency water infrastructure rebate programs to provide water for emergency animal welfare requirements and improve long-term drought resilience.
  • There is scope to extend this assistance to other areas if needed.

Additional information on Water-related Infrastructure Rebates.

  1. Social and Community Support

$10.7 million will be used to enhance social and community support for drought-affected areas:

  • The two programs that will receive additional financial support are the Family Support Program and Targeted Community Care.
  • Will provide free one-on-one counselling, family support services and referrals to people in need.
  • Community engagement activities and events will be held to increase awareness in affected areas.

Additional information on Social and Community Support.

  1. Managing pest impacts in drought-affected areas

$10 million will be invested into programs primarily in Queensland and New South Wales:

  • Will primarily focus on reducing the impacts of wild dogs and other pest animals.
  • Will be delivered through local natural resource management organisations.

Additional information on Pest Management Program.

How Moore Stephens can help you

Climatic and economic conditions and government regulations continue to present primary producers and suppliers with ongoing challenges. Whilst there is little we can do about climatic conditions, Moore Stephens understands the range of issues that impact on a farming business and we can help you understand the financial ramifications of a multitude of decisions that may need to be made.

To find out how our Agribusiness industry specialists can help your business and provide practical, commercially astute solutions, contact your Moore Stephens advisor today.

We look forward to hearing from you.

This publication is issued by Moore Stephens Australia Pty Limited ACN 062 181 846 (Moore Stephens Australia) exclusively for the general information of clients and staff of Moore Stephens Australia and the clients and staff of all affiliated independent accounting firms (and their related service entities) licensed to operate under the name Moore Stephens within Australia (Australian Member). The material contained in this publication is in the nature of general comment and information only and is not advice. The material should not be relied upon. Moore Stephens Australia, any Australian Member, any related entity of those persons, or any of their officers employees or representatives, will not be liable for any loss or damage arising out of or in connection with the material contained in this publication. Copyright © 2014 Moore Stephens Australia Pty Limited. All rights reserved.