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Small Businesses
Many small businesses that rely on farmers and their income may be eligible for EC income support and business support.
Income support, or the Small Business Relief Payment, is provided through Centrelink as a fortnightly payment in a similar manner to the Newstart Allowance.
Interest rate subsidies, or the Small Business Interest Rate Subsidy, 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 Exceptional Circumstances (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.
For more information and to apply
Contact your local Centrelink office, the Drought Assistance Hotline on 13 23 16 or visit the Drought Assistance page on Centrelink’s website
For more information and to apply for business support 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
For information relating to recent changes to EC support, read the following fact sheets:
- Supporting small businesses severely affected by drought
PDF [125kb] - Increase in Exceptional Circumstances business support payments PDF [125kb]
- More fact sheets
Legislative Changes for EC Support
On 7 November 2006, the Prime Minister made an announcement to allow agricultural-dependent small business operators to access the same Exceptional Circumstances (EC) assistance measures that are provided to farmers.
The Farm Household Support Amendment Bill 2007 (the Bill) was given Royal Assent on 15 April 2007. The Bill made amendments to the Farm Household Support Act 1992 (FHS Act), and consequential amendments to the Age Discrimination Act 2004 (AD Act) and the Social Security Act 1991 (SS Act).
The FHS Act was amended so that agricultural-dependent small business operators can access EC income support through ex-gratia arrangements and gain access to a Health Care Card.
The SS Act amendments enabled agricultural-dependent small business operators to gain concessions for the Youth Allowance and Austudy means test.
Changes to Legislation
- Farm Household Support Bill 2007 PDF [56kb]
- Farm Household Support Bill 2007 – Explanatory Memorandum PDF [28kb]
- Business Cost Calculator Report PDF [20kb]
