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

I move:

That this bill be now read a second time.

The Farm Household Support Amendment Bill 2018 is to amend the Farm Household Support Act 2014.

The bill proposes to extend the cumulative period of farm household allowance from three years to four years for each recipient.

Farm household allowance is more than a social security payment; it is a package of assistance comprising income support, an independent financial assessment of the farm business, individualised case management and an activity supplement that pays for advice and training. The safety net provided by this program ensures the government can appropriately support farmers in hardship while they take steps to improve their situation.

The government has worked to achieve its vision for a profitable, competitive, resilient and sustainable agriculture sector. It's an industry that all Australians should be proud of—it's a pillar of the Australian economy, and it's the lifeblood of many rural and regional communities.

While the agriculture sector continues to be a strong performer, it's not immune to fluctuations, and variability is part and parcel of running a farm business.

The government is committed to supporting our farming communities to generate wealth and build strength and prosperity. Like every other Australian, we want farmers to put money aside for a comfortable retirement. We want them to take time away from their farm for learning and development and to take advantage of our substantial investment in research and innovation. We want them to be able to support their kids so they can dream big and achieve those dreams. Sometimes this means supporting farmers in financial hardship to help them build resilience for the future.

But this support has to be equitable with other types of support. The government's general position is that farm household allowance should be aligned with mainstream social security, unless there are good reasons for departure. The most significant departure is the two-tier asset test, which has a significantly higher threshold for farm assets than other payments. This setting recognises that a farmer's biggest asset is their land, but in times of hardship that land is not capable of generating a return that sustains the family.

The book value excludes the farmer from other income support payments, yet the farmer cannot realise those assets for self-support without taking away some, or all, of the longer-term income producing capacity of the farm enterprise.

A key element of the program includes an independent financial assessment of the business to sustain the family into the future. This assessment is backed up by one-on-one case management and an activity supplement of $3,000 per person from day 1 to put towards advice or training to improve their situation. Under the agriculture white paper we added a further $1,000 per recipient in the final year of payment. That's $8,000 over and above the fortnightly payment for a couple on payment. This extension of the payment will also give people longer to choose activities that will help them into the future.

This supplement is not limited to agricultural extension activities—it pays for things that are going to increase the total household income. It can pay for truck and bus licenses, forklift tickets, welding qualifications, drone training, teacher training, website design—whatever our farmers and their partners can reasonably think of to generate income.

And we don't stop there. Since 2013, this government has committed more than $90 million to the Rural Financial Counselling Service program. This is not a bricks and mortar service. Staff are highly mobile and visit people on-farm or in town. Rural financial counsellors complement and support the work of the farm household case officers by working closely with recipients so they can make sustainable changes. Although the overwhelming majority of people remain on-farm, some do make that tough decision to sell up and try something new. Farm household allowance provides the breathing space for these big decisions. The support of the case officer and the rural financial counsellor can make a huge difference. People can plan their next move and take some time to make that happen. They can come on and off payment as many times as suits their circumstances, truly using it as a safety net.

We know the farm household allowance is well received. The government has outlaid more than $230 million that has helped over 7,900 farmers and their partners. Recipients of the support have been surveyed and almost 90 per cent of respondents reported that the program had improved their current financial circumstances, and more than 50 per cent expect to stay on-farm with greater farm income and/or less debt.

The extension of support for a further year will help farmers who have not had the opportunity to implement their plans for financial self-sufficiency. The government has listened to many farmers suffering due to the ongoing unfavourable climatic conditions across parts of the eastern seaboard. The additional income to small towns and rural centres will also assist regions as a whole by broadening the economic base.

When the farm household allowance program was introduced in 2014, the cumulative period of farm household allowance available to an eligible farmer or their partner was set at three years, or 1,095 days.

However, this government has seen firsthand and listened to the experiences of Australian farmers. We know that some farmers and their families have been, and continue to be, subject to pressures that extend beyond a cumulative three year period and need more time to recover from hardship and get back on their feet.

The bill therefore proposes extending the cumulative period of farm household allowance to four years, or 1,460 days. This extension will apply to current and future recipients as well as those who have already concluded their initial three year cumulative period of entitlement.

In short, extending the farm household allowance will give recipients greater opportunities to improve their circumstances or consider an alternative future.

In seeking to extend the cumulative period of farm household allowance from three years to four years, this bill further demonstrates this government's responsiveness to the needs of the farming community and the conditions faced in rural and regional Australia. The government will continue to look for opportunities to improve the farm household allowance program, including streamlining applications where it is necessary. I commend the bill to the House.

Debate adjourned.