Frequently Asked Questions

Advice and Training Grant:

1. What is the purpose of the Climate Change Adjustment Program?
2. What is the Advice and Training Grant?
3. How much is available under the Advice and Training Grant?
4. Are Advice and Training Grants taxable?
5. Who is eligible for the Advice and Training Grant?
6. Are sharefarmers eligible for the Advice and Training Grant?
7. Do I have to be in an Exceptional Circumstances (EC) declared area to apply for Climate Change Adjustment Program?
8. Are there any income and assets tests for the Advice and Training Grant?
9. When must the application be made for the Advice and Training Grant?
10. How is the Advice and Training Grant paid?
11. What is the Farm Business Analysis and Financial Assessment?
12. What are Group 1, 2 and 3 farmers?
13. What is a CCAP Action Plan?

Re-establishment Grant:

14. Is the Re-establishment Grant still available?

Income Support:

15. Does the program provide income support assistance?
16. What is the duration of Transitional Income Support?
17. How much income support will an eligible farmer receive?
18. Is access to Transitional Income Support dependant on any mutual obligation?

Other assistance and further information:

19. How to apply for assistance or obtain further information about the grants

1. What is the purpose of the Climate Change Adjustment Program?

   The Climate Change Adjustment Program (CCAP) is a component of Australia’s Farming Future (AFF), which is one of the Australian Government’s key initiatives for primary industries. AFF provides funding over four years to help primary producers adapt and respond to climate change.

   The other two components of AFF are:

   • Climate Change Adaptation Partnerships Program - to increase primary producers’ understanding of climate change impacts and improve on-farm preparedness
   • Climate Change and Productivity Research Program - to undertake research on managing emissions and adaptation

   The CCAP assists primary producers in financial difficulty, who are, or are likely to be, adversely impacted by climate change, including those experiencing hardship caused by drought, to obtain professional advice and training.

   The CCAP assists farm families to adjust their businesses to manage the impacts of climate change and to set goals and take action to improve their long term financial circumstances, either within or outside of agriculture.

   Advice and Training Grant

2. What is the Advice and Training Grant?

   The grant of up to $5500 (GST inclusive) is available for specialised professional advice and training across a range of disciplines to assist farmers to adjust to the impacts of climate change. Examples of professional advice include financial assessment, business planning and management, technical advice, legal and personal advice where the advice is linked to managing the impacts of climate change. Examples of training include climate risk assessment, weather monitoring, computer skills and skills that may provide off farm employment.

3. How much is available under the Advice and Training Grant?

   The CCAP Advice and Training Grant provides up to $5500 including GST.

4. Are Advice and Training Grants taxable?

   The CCAP Advice and Training Grant is generally not taxable if it is being paid to assist you leave farming. Where it reimburses you for the cost of purchasing an asset which declines in value (e.g. software) and which is used by you for income producing purposes, it may be included in your assessable income as an assessable recoupment. If you are remaining in farming, the CCAP Advice and Training Grant is included in your assessable income. Applicants can seek the advice of a tax adviser.

5. Who is eligible for the Advice and Training Grant?

   To be eligible for the Advice and Training Grant a person, for a continuous period of at least 2 years immediately before applying for the CCAP Advice and Training Grant, must

   • have been a farmer in Australia
   • have derived a significant amount of his or her gross income from the farm enterprise
   • have contributed a significant amount of his or her capital to the farm enterprise
   • have contributed a significant amount of his or her labour to the farm enterprise
   • have not received assistance from the Farm Help Advice and Training Scheme or Exceptional Circumstances Professional Advice and Planning Grant
   • the farmer must satisfy the Financial Assessment assets test (see Question 8)
   • the farmer must undertake a Farm Business Analysis (see Question 11) and develop a CCAP Action Plan (see Question 13).
     

6. Are sharefarmers eligible for the Advice and Training Grant?

   Yes.

7. Do I have to be in an Exceptional Circumstances (EC) declared area to apply for Climate Change Adjustment Program?

   No. You do not have to be located in an EC declared area to apply for Climate Change Adjustment Program. Climate Change Adjustment Program is available to farmers Australia-wide to apply for, including in EC declared areas.

8. Are there any income and assets tests for the Advice and Training Grant?

   Yes. Income and assets tests are the same as for the Newstart Allowance; in addition, the Financial Assessment test applies: assessments of non-farm assets, liquidity, debt to equity ratio and total net assets. See Question 11 for more information on the Farm Business Analysis and the Financial Assessment test.

9. When must the application be made for the Advice and Training Grant?

   Applications for the Advice and Training Grant will be accepted until 11 May 2012.

10. How is the Advice and Training Grant paid?

    The funds will be paid directly to the third party undertaking the approved activity. A voucher will be issued to the applicant to provide to the third party prior to the service being delivered. Vouchers must be used and submitted to the Department of Human Services (formerly Centrelink) for payment prior to close of business on 15 June 2012.

11. What is the Farm Business Analysis and Financial Assessment?

    The Farm Business Analysis examines the financial position of the farm enterprise. This assessment is important because it provides the farmer with an independent appraisal of their farm enterprise’s financial position, which will assist them to decide what is best for the future of the farm business and their family.

    The Financial Assessment includes four tests (non farm assets, liquidity, debt to equity ratio and total net assets) and is designed to assist in determining the level of assistance, as outlined in Question 12.

12. What are Group 1, 2 and 3 farmers?

    Group 1: The farm enterprise is assessed as borderline viable. The farmer is case managed by a Rural Financial Counsellor, who provides assistance in developing and working through the CCAP Action Plan. The farmer is eligible for Transitional Income Support.
    
    Group 2: The farm enterprise is assessed as viable but at risk due to the impact of drought. The farmer is not case managed, but is still required to develop an action plan, which documents the advice and training activities the farmer plans to undertake. The farmer is not eligible for Transitional Income Support. This part of the program is administered through the Department of Human Services.
    
    Group 3: Farmers do not satisfy the total net assets test, i.e. their total net worth exceeds $1.5 million. They are not eligible for the program.

13. What is a CCAP Action Plan?

    The CCAP Action Plan is a key component of the CCAP because it maps out the process that individual farm families will follow to adjust their farm business to the impacts of climate change. An action plan will set out goals, actions, timelines, expected outcomes and performance indicators. In doing so, the action plan will document the mutual obligation component for the CCAP Advice and Training Grant.

    Re-establishment Grant

14. Is the Re-establishment Grant still available?

    No.

    Income Support

15. Does the program provide income support assistance?

    Income support is available to assist farm families in financial difficulty to manage the impacts of climate change under the Transitional Income Support program. The support will help farm families while they examine the likely impact of climate change on their farm business, take action to address these challenges and improve their long term financial security.

16. What is the duration of Transitional Income Support?

    The Transitional Income Support program commenced on 16 June 2008 and will continue until 30 June 2012, or until program funds are expended. This program provides an individual/family up to a maximum of 12 months income support.

17. How much income support will an eligible farmer receive?

    Income support will be provided for up to 12 months at the Newstart Allowance rate. However, as the program is due to cease on 30 June 2012, any farmers applying for the program after 1 July 2011 will be paid income support only until 30 June 2012, or until program funds are expended.

18. Is access to Transitional Income Support dependent on any mutual obligation?

    Yes. Transitional Income Support is dependent upon farmers developing a CCAP Action Plan and undertaking the actions included in the plan, to achieve improved financial security for their family and increased preparedness of the farm business, for changing economic and climatic conditions. Funds to access professional advice and training, development of action plans and case management will be available through the CCAP.

    Other assistance and further information

19. How to apply for assistance or obtain further information about the grants

    To apply for a grant under the CCAP or Transitional Income Support farmers will need to fill in an application form and lodge it at the nearest Department of Human ServicesCentrelink Customer Service Centre.

    For further information on the CCAP, farmers can call the farmer hotline number – 1800 050 585. Follow the link for further information on the initiatives available under the Australia’s Farming Future.