Michael Sukkar (Deakin, Liberal Party, Assistant Treasurer) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

The Australian government is committed to backing our farmers and the Farm Household Allowance (FHA) is a key element of this, ensuring we're looking out for farmers when times get tough.

Since the Farm Household Allowance was introduced in 2014, over $621 million in support payments have been made to over 16½ thousand farmers and their partners. The Farm Household Allowance is available to farmers and their partners for a total of 1,460 days (or 4 years) in every 10 years.

As conditions have improved, a cohort of farm household allowance recipients no longer require access to this payment and are now able to preserve access to it for use again, if or when conditions deteriorate.

Right now, there are more people preserving their farm household allowance allocations than there are new entrants.

We have said repeatedly, the story of agriculture is 'just add water'. The government is proud of the resilience of the farming community and their ability to bounce back.

When the 2018 independent review of the farm household allowance recommended improvement, we stepped up. Our response has made it easier for farmers to access the payment when needed, and we increased the support available. These changes are having a real impact for our farming families:

The farm household allowance story is one of change and improvement. Over 90 per cent of respondents to the farm household allowance exit survey advise that they have finished the program with clear expectations for their future. This is what some of them have said:

It has been a lifesaver, providing basic financial household support which has alleviated depression and anxiety.

This has been an unbelievable help to improve our viability as a farming business.

Receiving the FHA helped us educate our son who will more than likely take over the farm with more education than my husband or I had.

Feedback just like this demonstrates why it was so important to remove the confusing policy setting of business income reconciliation (BIR) from 1 July 2020.

Farming income is volatile, based on uncertain yields and prices, and unpredictable weather. We asked farmers to make difficult predictions about this income for the year ahead. When farmers, acting in good faith, got this wrong, BIR would make them liable for a debt.

The Farm Household Support Amendment (Debt Waiver) Bill 2021 will address historic BIR cases. We will permanently waive repayment of the majority of BIR debts between 1 July 2015 and 30 June 2020. This will give debt relief to up to 5,300 farmers and their partners.

The bill will also ensure fairness among recipients by maintaining the 1,460-day limit on payment. Farm household allowance recipients who were recredited days from a previously raised debt will have the option to trade these days back in order to access the waiver. This means that no-one will be able to 'double dip' on their benefit.

Importantly, this bill will maintain the integrity of the program. It will not allow debts arising from other sources, such as undeclared wages and rental income, to be waived. Existing reporting obligations and regular compliance activities will therefore be maintained.

Though the quantum of the debts to be waived through this bill are modest, this measure will provide breathing space as our farming families recover from the drought, bushfires, floods and global pandemic that they've experienced over the last few years.

Waiving these debts will ensure that these families retain every dollar possible to help them recover, build resilience and grow their businesses.

Debate adjourned.