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Farm Household Allowance (FHA)

Posted 18 Sep '20

Farm Household Allowance (FHA)

By Gillian Hayward

Are you aware of changes made to the Farm Household Allowance?

Changes to the FHA came into effect on 11 June 2020 which make it easier for farmers to access the allowance.

The FHA is a fortnightly payment (amount is equivalent to Youth Allowance) to farming families in financial hardship, for a maximum of four years in each 10-year period. It also provides an option to claim an Activity Supplement up to $10,000, which you can use to pay for study, training or professional advice to help improve your financial position.

To be eligible, you must satisfy the following criteria:

  • Must be a farmer (or partner of a farmer) and spend a major part of your time and capital on the farm (must be over 16 years of age and meet the residency rules)
  • Meet the income test (total income must be below the cut off for the Jobseeker Payment income test, however there are different circumstances which may affect this assessment, further details are available on the Services Australia website)
  • Meet the assets tests (combined personal and farm assets must be below $5.5 million)
  • Meet mutual obligation requirements:
    • Complete a farm financial assessment ($1,500 will be provided to help pay for a financial assessor’s fee), 
    • Sign a financial improvement agreement, and
    • Have regular contact with a Farm Household Case Officer

We recommend that you do not self-assess your eligibility, instead speak to a rural financial counsellor in your area.

To find a rural financial counsellor in your area, visit the following link: RFCS

Gillian Hayward

Associate





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