Small Businesses
Many small businesses that rely on farmers and their income may be eligible for exceptional Circumstances (EC) assistance.
Income support, or Exceptional Circumstances Relief Payment (ECRP) for small business, is provided through Centrelink as a fortnightly payment in a similar manner to the Newstart Allowance.
Interest rate subsidies, or the EC Interest Rate Subsidy for small business, is administered by the State and Territory rural assistance authorities.
Both forms of support are available to eligible small businesses that rely on farmers for their income.
Eligibility Requirements
To be eligible, the owners of small businesses must
- source a minimum 70 per cent of their income from the provision of goods and services for farming activities in EC-declared areas, or after 25 September 2007, demonstrate that the business is located in a town that is substantially reliant on farm income, has a population of 10 000 or less and is in an EC (including prima facie and interim assistance) declared area
- employ up to 100 full time equivalent staff
- have experienced a significant downturn as a result of the drought
- contribute a significant part of their labour and capital to the business and derive a significant part of their income from the business
- be an Australian resident or have permission to stay permanently in Australia, and
- have a current Australian Business Number (ABN) and carry out commercial activities.
- income and assets tests do apply but assets essential to the running of the small business are not included.
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.
The gifting provisions may also apply to assets gifted by small business operators where the asset meets the conditions of an exempt asset under section 3(2) of the Farm Household Support Act 1992.
However, small business owners 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.
For more information and to apply
For more information and to apply for ECRP contact your local Centrelink office, the Drought Assistance Hotline on 13 23 16, the Murray-Darling Basin Assistance and Referral Line on 1800 050 015 or visit Drought Assistance on Centrelink’s website.
For more information and to apply for an EC Interest Rate Subsidy contact the relevant State or Territory rural assistance authority as listed on the Drought Contacts page or on the telephone numbers below.
- New South Wales and Australian Capital Territory: NSW Rural Assistance Authority 1800 678 593
- South Australia: Primary Industry and Resources South Australia 1800 182 235
- Queensland: QRAA 1800 623 946
- Victoria: Rural Finance Corporation of Victoria 03 5448 2600
- Western Australia: Rural Business Development Corporation 1800 198 231
- Tasmania: Department of Primary Industries and Water 1300 368 550
- Northern Territory: Department of Primary Industry, Fisheries and Mines 08 8999 2077 or
08 8999 5303