Frequently Asked Questions about the Exceptional Circumstances Exit Package

The Exceptional Circumstances Exit Package closed to new applications as at close of business on 10 August 2011.

Why is the government not accepting any further applications for the Exceptional Circumstance (EC) Exit Grant?

Due to the current demand for the Exceptional Circumstances (EC) Exit Grant, all funding for the program in the 2011-12 financial year has been fully committed. As at close of business on 10 August 2011, no Exceptional Circumstance Exit Grant applications are being accepted.

Why was the program closed to new applications on 10 August?

Although solid demand has taken the program to full subscription earlier than anticipated, the same number of people have been assisted as provided for under the funding envelope, merely faster than estimated.

I have sold my farm and submitted an application to Centrelink, will it be accepted?

If you have sold your farm and submitted an application for the EC Exit Grant, or dispatched an application for the grant in the mail, before close of business on 10 August 2011, then your application will be processed as normal. If you are subsequently assessed as eligible by Centrelink then the grant will be paid to you. 

I have an advice and retraining voucher under the program, when do they expire?

If you were granted an EC Exit Grant prior to 30 June 2011, you had until 30 June 2011 to use your advice and retraining vouchers. If your EC Exit Grant was paid in the period 1 January 2011 to 30 June 2011, an extension until 15 June 2012 may be available to you. Please contact Centrelink on 13 2316 to confirm if the extension is available to you.

I have a relocation voucher under the program, when do they expire?

If you were granted an EC Exit Grant prior to 30 June 2011, you had 4 months from the date of settlement or until 30 June 2011 (whichever occurred first) to use your relocation vouchers. If your EC Exit Grant was paid in the period 1 January 2011 to 30 June 2011, an extension beyond 30 June 2011 may be available to you. Please contact Centrelink on 13 2316 to confirm if the extension is available to you.

Are there other government programs that provide similar exit assistance?

The government will continue to provide a range of support for struggling farmers. For example, the Climate Change Adjustment Program component of the government’s Australia’s Farming Future, offers financial assistance to farmers to obtain advice and training to prepare for a different future due to the impact of climate change.

Transitional Income Support assists farmers, regardless of location or industry, who are in need of short term income support to assist recovery from drought, and to help them manage the impacts of climate change.

Will there be further Exit Grants available next financial year?

This will be considered by the government in the context of the 2012-13 Budget.

Are there any other exit grants available?

The government is still finalising its drought policy reform package which may include future exit assistance.

What support did the EC Exit Grant provide?

The EC Exit Grant was designed to assist eligible farm families in severe financial difficulty who choose to leave farming to re-establish themselves outside farming. The program provided three elements of assistance

• an exit grant of up to $150,0000
• an advice and retraining grant of up to $10,000
• a relocation grant of up to $10,000

Is the EC Exit Grant taxable?

The EC Exit Grant is subject to Capital Gains Tax. Grant recipients should seek the advice of a tax adviser regarding their taxation liabilities.

I have received a grant. Does my undertaking not to become an owner or operator of a farm enterprise within 5 years of the date of settlement still apply now that the program has closed?

Yes, it still applies.

Is money received from an EC Exit Grant exempt from normal bankruptcy processes?

No. The grant is not prescribed in the Bankruptcy Regulations for the purpose of sections 116(2)(k) and 116(2)(l) of the Bankruptcy Act 1966. This means that the EC Exit Grant is not exempt from normal bankruptcy proceedings.

For further information on the EC Exit Assistance Package, farmers can call the Drought Hotline on 13 23 16.