Luke Hartsuyker (Cowper, National Party, Assistant Minister to the Deputy Prime Minister) Share this | Hansard source

I welcome the opportunity to make a contribution on this important bill, the Farm Household Support Amendment Bill 2017. Before I go to the substance of my contribution and final remarks on this bill, I would like to reflect on a saying, which is that empty vessels make the most noise. In this House there is probably no greater example of that than the member for Bendigo. As much as it pains me to have to do so, I will have to correct the record with regard to some claims made by the member for Bendigo.

The member for Bendigo made assertions that the Bendigo office of the Rural Financial Counselling Service was shut because they complained about the introduction of the farm household allowance. The member for Bendigo is wrong and needs to be corrected. The government undertook a public tender process for the delivery of our RFCS services over the next four years, commencing on 1 April 2016. The outcome of that process was the Sunraysia or Victoria North West RFCS was awarded the contract to deliver this service in the Bendigo area. There were no disruptions to this important service. Our farmers and our rural communities still continue to benefit from the services that are provided. In fact, the member may wish to visit 62b Breen Street in Bendigo to familiarise herself with her local RFCS provider.

Returning to the substance of the bill. This bill demonstrates the government's responsiveness to the needs of the farm community and rural and regional Australia, and demonstrates its willingness to streamline the assessment of the farm household allowance applications where appropriate and possible. The circumstances of farmers and their partners are unique. It is not always possible for farmers experiencing hardship to draw down on their assets to support themselves given the illiquid nature of farm assets and their day-to-day operational requirements. The farm household allowance program provides up to three years of income support to eligible farmers and their partners while they take steps to improve their long-term financial situation. As part of the program, recipients are supported to undertake a farm financial assessment, and they have access to $1,500 in funding to do so, and a financial improvement agreement, or FIA, which is a plan to work towards improving their self-reliance. Under the FIA, a recipient can access an activity supplement of up to $4,000—$3,000 over three years and an additional $1,000 in the final year of payment—to pay for eligible professional support, advice or training.

Support is also provided through dedicated farm household case officers, who work with recipients to assess their individual situation and identify activities to improve their long-term situation. While on payment, farmers and their partners also have access to a healthcare card, pharmaceutical allowance, rental assistance, telephone allowance, the energy supplement and the remote area allowance. Recipients must also identify objectives and undertake activities designed to move them forward to a more financially sustainable future. If it is not possible for recipients to achieve financial sustainability, notwithstanding the support offered through the program, it also provides support for recipients to consider an alternative in employment or transitioning away from farming with dignity, however difficult that decision may be.

Unlike previous schemes requiring drought conditions to trigger, farmers experiencing hardship in a range of circumstances are able to access the farm household allowance program. The government has introduced a number of other measures to specifically assist those experiencing drought conditions. For example, the recently opened drought assistance concessional loan scheme provides loans aiming to assist drought affected farm businesses manage and recover from drought with an aim to return them to viability in the long term. Loans of up to 50 per cent of eligible farm business debt up to a maximum of $1 million are available, and that is a significant amount of assistance.

The bill continues the improvement of the farm household allowance program. By improving the legislation, farm household allowance applicants and recipients will benefit because we are clarifying the eligibility test to apply for this support and removing unnecessary waiting periods. Importantly, the bill clarifies the treatment of assets necessary for the operation of the farm enterprise under the act and includes them within the farm assets test. It removes the requirement for successful farm household allowance recipients to serve an ordinary waiting period or a liquid assets waiting period before they receive payment.

The bill addresses the community concerns relating to the time taken to process applications for the farm household allowance and the treatment of water assets and shares in marketing cooperatives as non-farm assets rather than as farm assets necessary for the operation of the farm enterprise. Simultaneously, my colleague Minister Tudge has announced that the Department of Human Services has commenced an eight-week pilot whereby a new dedicated team within DHS manages new farm household allowance applications, increases outbound telephone contact with applicants to assist them through the application process, and provides streamlined processes to aim to finalise simple cases within four weeks and complex cases within six weeks. There will be minimal cost to the government. The bill streamlines government administration and improves government efficiency. There will be no cost generated to the government in removing the requirement of successful applicants to serve an ordinary waiting period or liquid assets waiting period.

I thank the members for their contributions to this debate in the House. I would also like to thank the Deputy Prime Minister for the huge amount of effort that he has put in to deliver improvements to this program so that they better meet the needs of those on the land who are struggling. I commend the bill to the House.

Question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.

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