David Littleproud (Maranoa, National Party, Minister for Agriculture and Water Resources) Share this | Hansard source

This bill, the Farm Household Support Amendment (Temporary Measures) Bill 2018, demonstrates this government's responsiveness to the needs of farming communities and our commitment to rural and regional Australia. The Farm Household Allowance program provides support for all farmers and their partners facing hardship, including drought. It's a time limited program, and from 1 August 2018 the government increased the time on payment from three to four years accumulative.

This bill proposes two temporary changes to the Farm Household Allowance program. The first change is to increase the net farm assets threshold to $5 million to begin on a date to be prescribed by a minister's rule and ending on 30 June 2019. The second change provides a supplement to all eligible farm household allowance recipients in addition to their fortnightly payments. These temporary measures are designed to help our farmers in the short term while we undertake an independent review of the FHA which will provide further guidance on the design elements of the farm household allowance into the future.

The increase to the farm assets threshold was specifically raised by farmers on the listening tour this government undertook in June 2018, with harsh drought conditions impacting their ability to provide the basics for their families. In fact, many of these farmers have not yet been able or were unable to access the farm household allowance. I will be introducing a minister's rule that will allow farmers with net farm assets up to $5 million to lodge a claim for FHA from 1 September 2018. Implementation arrangements to allow the processing of these applications will be in place from 1 October. People who are granted FHA under the temporary farm asset increase can continue to receive their payment after 30 June 2019 as long as they continue to meet all other eligibility requirements.

The bill also pays a supplement, called the FHA supplement, of up to $12,000 to a couple where both are recipients of the farm household allowance and up to $7,200 for single recipients. This additional support will benefit not only our farmers but the regional communities they live in. The allowance is not about paying for feed and fodder. It's about putting food on the table, paying household bills or putting diesel in the ute. But the farm household allowance is more than a social security payment. Recipients are supported to undertake a farm financial assessment and a financial improvement agreement, which is a plan to work towards improving their self-reliance. Recipients identify goals and undertake activities designed to move them towards a more sustainable future. These features of the program continue unchanged.

FHA also provides access to activity supplements of up to $4,000. This money can be used for eligible professional support, advice or training. This support affords farmers and their partners an opportunity to earn an off-farm income. Recipients will also continue to receive support through dedicated farm household case officers who work with recipients to assess their individual situation and to identify activities to improve their long-term situation. While on payments, farmers and their partners also have access to a healthcare card, pharmaceutical allowance, rent assistance, telephone allowance, energy supplement and remote area allowance. If it is not possible for recipients to achieve financial sustainability, notwithstanding the support offered through the farm household program, the program also supports recipients to consider alternative employment or transitioning away from farming with dignity.

This bill demonstrates the government's continued responsiveness to the needs of our farming communities. By amending the legislation, more farmers and their partners will be able to access the farm household allowance program, and eligible recipients will be paid a supplement in addition to their fortnightly income support payments. The bill increases the net farm assets test to $5 million until 30 June 2019, with the start date to be determined by ministerial rule. It pays a supplement of up to $12,000 for a couple where both are recipients of farm household allowance and up to $7,200 for single recipients. It helps farmers and their partners recover from the hardship. This bill benefits current and future farm household allowance recipients and the communities they live in. I thank the members for their contributions and commend the bill to the House.

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