Cancellation of debt repayment, a boost for farmers
The Australian government continues to support struggling farmers by passing legislation today that waives the majority of farm household allowance debts caused by incorrectly estimating a business’s income.
Agriculture, Drought and Emergency Management Minister David Littleproud said the waiver ended a complicated process and would help farmers get back on their feet and grow their businesses.
“Business Income Reconciliation debts result from farmers asking farmers to make difficult predictions of their income for the coming year,” said Minister Littleproud.
“Acting in good faith, some farmers have underestimated their income and got into debt.
“With many recipients of agricultural household allowance affected by droughts, floods and bushfires in recent years, these debts are the last thing they need.
“The removal of the business income reconciliation was one of the recommendations the government adopted following the farmer-led review of the Farm Household Allowance.
“As of July 1, 2020, farmers and their partners no longer need to complete this process.
“This waiver will help Services Australia expedite and resolve outstanding reconciliations and provide certainty to the farming community.”
Recipients of the agricultural household allowance will have until June 30, 2023 to provide the necessary documents for processing. This will determine if they are eligible for an exemption, refund or top-up of their payments.
Former and current recipients of the Farm Household Allowance who received payments between July 1, 2015 and June 30, 2020 should ensure that all of their tax documents are compiled and ready for delivery to Services Australia as soon as they are received. request it.
Requests for this information are expected to be sent from early 2022.