Income Support
Income support is also available to eligible small businesses that rely on farmers for their income – see Small businesses.
ECRP is paid at a rate equivalent to the Newstart Allowance and is subject to an assets and income test similar to that for Newstart, with a $20,000 off-farm salary and wages exemption. Assets, including the farm, that are essential to the running of the business are not included in the assets test. The payments are delivered by Centrelink on behalf of the Australian Government and are taxable.
Eligibility Requirements
Applicants must meet the definition of a ‘farmer’, that is, a person who- owns or leases land for farming
- contributes significant labour and capital to the farm, and
- gains a significant part of their income from the farm.
They must also hold a current EC certificate issued by Centrelink.
The Department of Agriculture, Fisheries and Forestry has clarified its policy on the treatment of gifted assets for the purposes of ECRP. When assessing the assets of applicants and recipients of ECRP, assets that are exempt under the Farm Household Support Act 1992, are excluded from the application of gifting provisions under the Social Security Act 1991.
The policy clarification means farmers may continue to receive ECRP after they gift farm land and assets, provided they continue to farm and meet the ECRP eligibility criteria.
The policy clarification does not apply to gifted farm land for which the farmer did not have a right or interest in for the purpose of a farm enterprise. All assets which do not meet the conditions of an exempt asset under section 3(2) of the Farm Household Support Act 1992, are subject to gifting rules as per the Social Security Act 1991.
However, farmers should not self-assess their eligibility for income support but should call the Drought Assistance Hotline on 13 23 16 or the Murray-Darling Basin Assistance and Referral Line on 1800 050 015.