Bridget Archer (Bass, Liberal Party) Share this | Hansard source

Life on the land can be very rewarding, and most farmers that I know wouldn't see themselves anywhere else. But, as we've seen time and time again, it can also be incredibly difficult. It can take a huge toll financially, emotionally, physically and mentally when, no matter the hours that are put in and despite the best-laid plans, so much hope is smashed due to factors outside farmers' control—namely, uncertain yields, price changes and unpredictable weather. In recent years we've seen fires, floods and droughts, and now we have COVID-19 and a mouse plague as well. Being married to a sheep and cattle farmer of many generations myself, I've certainly come to understand how volatile farm income can be and the stress that the constant unpredictability of that industry can put on a family.

On our own farm we've had a pretty good year, with some decent rain, and with sheep and cattle prices high. But last year, when rain had been a bit scarce, we were feeding grain to those same sheep in February. And around 15 years ago, in very dry conditions, you could hardly give those sheep away. At our annual lamb sale, sheep prices then were down to about $2 per head. Wool, too, can be very volatile, with good markets in recent years now being affected by the impacts of COVID-19, for example.

Farming in Australia will always be a case of swings and roundabouts. The farm household allowance is a necessary payment for farmers and their families in hardship, and one that the government is committed to getting right as we continue to provide essential support for one of our most essential industries. We acknowledge that, under previous arrangements, we asked farmers to make difficult predictions about their farm income for the year ahead, which did result at times in farmers, after acting in good faith, becoming liable for a debt. Recognising this, we've already removed the business income reconciliation process that would make farmers liable for debt, which was a step in the right direction. Importantly, this bill today, the Farm Household Support Amendment (Debt Waiver) Bill 2021, will now address that historical business income reconciliation debt, providing much-needed relief to over 5,000 farmers. The waiver means that most farm household assistance recipients will not have to pay back debts incurred due to inaccurately estimating future income while receiving the farm household allowance.

Significantly, beyond waiving new BIR debt, this bill also removes the requirement to recredit days on payment where BIR debt is incurred, allows a small number of farm household assistance recipients with existing BIR debts to repay the debts using their remaining farmhouse allowance days, maintains the time limited payment to four years, or 1,460 days, in every 10 years and provides refunds to farm household allowance recipients who incurred part-day debts where the person was still entitled to some payment.

It's important to note that since the 2018 independent farmer-led review of the farm household allowance, a number of reforms have already been implemented, including the passing of the three previous bills to implement changes, which were introduced over five tranches. These include, from 1 July 2019, profits from the fourth sale of livestock that are placed into a farm management deposit are not considered for the purposes of the income test for farm household allowance. The treatment of income from business was amended so that allowable deductions can be claimed against related income. From 16 December 2019, the off-farm income offset upper limit increased from $80,000 to $100,000. Farm losses can now be offset by off-farm income up to the $100,000 limit per couple, and eligibility for farm household allowance was extended from four years to four years in every 10-year period. From 25 March 2020, the 28-day time limit to conduct a farm financial assessment was removed, allowing case managers to take into consideration the complexity of the farm business and the availability of the person conducting the assessment. From 11 June 2020, anybody who qualifies for a payment can automatically receive the maximum amount. The assets test was simplified to a single amount of $5.5 million. Rural financial counsellors and farm consultants are able to complete the farm financial assessment, and the activity supplement increased to $10,000 per person and can be used for reasonable travel and accommodation to undertake the activities. From 1 July 2020, the requirement to undertake BIRs was removed.

This government does understand the challenges faced by farmers. We understand what it means to work in a country that is so subject to the vagaries of weather, and we will always be here to support our farmers in their time of need. This legislation is an important step forward towards ensuring that this support is targeted to those most in need and takes away unnecessary worry for those already in very stressful situations.

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