Eligibility and payability for Farm Household Allowance (FHA) 002-02040000

If both members of a couple want to receive FHA payments, they both must submit a claim. A combined partner claim is available for customers claiming FHA online.

From 1 July 2020, the paper claim for FHA (SU694) became available for a combined partner claim.

If both members of a couple meet the farmer eligibility criteria, they can both be paid FHA as a farmer. See Item 2.

If a person does not meet the definition of a farmer in their own right, they may be eligible for FHA as the partner of a farmer. A farmer does not have to claim FHA for their partner to claim and be eligible for FHA. See Item 3.

To test their eligibility to claim FHA, the customer must be a farmer at the time of claiming. There is no requirement to have been farming for any set period of time.

A customer is not eligible for FHA if they receive a nil rate at date of grant.

To be eligible for FHA they must also meet all of the following:

• They are a farmer who:
• contributes significant labour to a farm enterprise (or is unable to do so due to a temporary illness or injury)
• contributes significant capital to a farm enterprise (or is unable to do so due to a temporary illness or injury)
• The farm enterprise has significant commercial purpose or character
• The land used for the farm enterprise is in Australia
• They are aged 16 years or over (partnered customers must be over the age of consent in their State or Territory)
• They are an Australian resident and in Australia
• They meet the income and asset test
• They are willing to enter into a Financial Improvement Agreement (FIA) and comply with their mutual obligation requirements as agreed in the FIA. Customers indicate their willingness when claiming FHA
• They have received FHA for a cumulative period of less than 4 years in the specified 10 year period. The first specified 10 year period was from 1 July 2014 to 30 June 2024. The next specified 10 year period started 1 July 2024 and ends 30 June 2034

A customer is not eligible for FHA if they receive a nil rate at date of grant.

Any request for information needed to support an eligibility decision must be made in writing.

A person is eligible for FHA as the partner of a farmer if they meet all of the following:

• Their farmer partner meets the definition of a farmer and is in Australia
• The farmer contributes significant labour and capital to the farm enterprise
• The farm enterprise has a significant commercial purpose and character
• The land used for the farm enterprise is in Australia
• The person is an Australian resident and in Australia
• The person meets the income and assets test
• The person is willing to enter into and comply with a Financial Improvement Agreement (FIA)
• The person has received FHA for a cumulative period of less than 4 years in the specified 10 year period. The first specified 10 year period was from 1 July 2014 to 30 June 2024. The next specified 10 year period started 1 July 2024

The partner must be the partner of the farmer at the time of claiming.

The farmer does not have to claim or receive FHA for their partner to claim and be eligible for FHA.

Grace period

A partner may continue to receive FHA payments for a 14 week grace period if:

• their relationship ends (including due to the death of the farmer), or
• the farmer is in prison or psychiatric confinement

If the partner takes over operation of the farm during this time, they may qualify for FHA as a farmer in their own right.

Note: if a customer advises they are separating, see Separating safely - protecting personal details to ensure personal information is kept safe.

A farmer is a person who:

• has a right or interest in land, and
• uses the land wholly or mainly for the purposes of a farm enterprise

The land may be used for the following industries:

• agricultural
• horticultural
• pastoral
• apicultural
• aquacultural

The farmer may not have total financial or legal control of the farm enterprise. For example, they may have any other right, charge, power, or privilege over, or in connection with, the land.

Right or interest may be demonstrated through:

• ownership of the land
• leasing of land, supported by a formal lease contract or other documentation
• sharefarming, supported by a formal agreement
• shareholder of a private trust or company, beneficiary of the trust or member of a partnership
• leasing land from a self-managed superannuation fund
• holding a permit for the use of specified public land (for example, oyster farmers)

Apiarists can demonstrate a right or interest in the land by demonstrating they have an agreement with the land owner to keep their hives on that land.

See the Resources page for examples of farm enterprises.

A farmer must contribute a significant part of their labour and capital to the farm enterprise. They do not have to live on the farm.

'Labour' is not limited to on-farm activities such as milking the cows or driving the tractor. It also includes 'intellectual' labour such as financial and administrative management of the farm enterprise.

Consider:

• The time a customer spends working the farm enterprise compared with the farmer's other labours
• The customer's historical involvement in the farm enterprise. Their current involvement in another business may only be to support the farm while it is experiencing a downturn
• the customer’s personal circumstances, such as:
• a temporary illness or injury
• absent or retired farmers
• a farmer who is in a nursing home

See the Resources page for relevant scenarios.

A farmer must contribute a significant part of their own capital to the farm.

For this assessment:

• significant capital is determined on a case by case basis and does not require a defined proportion of capital for the qualification requirement to be satisfied
• the significant capital contribution is assessed in comparison to other capital and liabilities the farmer holds
• capital contributed by the individual must also be significant to the farm enterprise
• only the applicant’s contributions of capital to the farm enterprise are assessed. It is not a comparison of the total contribution of capital when other individuals are involved in the farm enterprise

See the Resources page for relevant scenarios.

A farm enterprise must have a significant commercial purpose or character. This is based on the size, scale, repetition, and regularity of the business activities as well as the profit indicators for the business.

For this assessment:

• Did the customer have an average gross turnover exceeding $60,000 for each of the last 3 financial years?
  Where the answer is no, is it a reasonable expectation for the income from the farm enterprise to exceed $60,000 gross turnover per year?
• Is the person or their partner an expert in respect of the farm enterprise?
  If the answer is no, have they had relevant expert advice or used technical literature (for example, from an experienced farmer, relevant authority)?
• Did the person get expert advice on the commercial scale and suitability of land?
• Did the person or their partner consider the (potential) commercial market for the enterprise?
• Did the person research the capital requirements and make plans to obtain the necessary capital?
• Did the person or their partner conduct research into the expected level of production, running costs, and likely profits of the farm enterprise?
• Did the person consider the legal requirements of operating the farm enterprise and did they comply?
• Does the person intend to make a profit in respect of the farm enterprise?
• Is there a reasonable belief the farm enterprise is likely to generate a profit?
• Does the person have a business plan that includes or is supported by expert advice
• Is it expected the farm enterprise will be the primary source of income for the person?

Contact Local Peer Support (LPS) before rejecting a customer for not meeting the $60,000 gross turnover income threshold.

To be eligible for FHA a person must be an Australian resident. For information on assessing residence requirements for FHA, see Residence assessment for customers claiming Farm Household Allowance (FHA).

FHA customers are subject to the Newly Arrived Resident's Waiting Period (NARWP).

Section 24 determinations can apply if the customer's partner is not residentially qualified to receive income support payments or is serving a NARWP.

If applied the customer is:

• considered as not a member of a couple
• paid the single rate of FHA, and the FHA entitlement is assessed using their individual income and assets only

Service Officers must review the Section 24 determination regularly to ensure the customer's partner has not recently become eligible for a social security payment.

FHA portability

If a customer is temporarily overseas for an approved reason, the FHA payments can:

• continue to be paid for up to 6 weeks. See Farm Household Allowance (FHA) customer going overseas
• be paid to a member of a couple (farmer or partner) regardless of the application of portability, if they:
• remain in Australia
• continue to meet all eligibility criteria

The farmer or the partner of a farmer can only receive FHA payments for a cumulative period of up to 4 years (1,460 days) in each specified 10 year period. These are: :

• first period 1 July 2014 to 30 June 2024
• second period 1 July 2024 to 30 June 2034

The days do not have to be consecutive days.

This includes days they were paid FHA as a farmer or the partner of a farmer.

This does not include periods they received nil payment, for example, waiting periods, employment income nil rate period, or when an adjustment has been applied after business income reconciliation.

For more details, see Farm Household Allowance (FHA) clock.

Do not complete A Farmer Specific Data (FSD) when:

• there are multiple updates to FSD, and
• the expected outcome will cancel the payment

For these cases manually cancel the FHA using the FHA Workflow.

See Suspending, cancelling and restoring Farm Household Allowance (FHA) for more details.

Current customers

To update Farmer Specific Data, open the customer's record in Process Direct:

• Go to FHA workflow
• Select Farmer Data from the Task Selector. The Farmer Specific Data (FSD) screen shows
• select Add to enter the details
• Start Date :
• For new claims, the date FHA payments will start
• For current customers, the date the customer's circumstances changed
• End Date: key 31/12/9999 unless updating a change to the customer's circumstances

If a line exists on the FSD with an End Date after the new Start Date:

• End the existing End Date using the day before the new Start Date
• Add a new line with the new circumstance

New claims

Within the claim activity, open the customer's record in Process Direct:

• Go to the FSD screen
• Start Date, date the FHA payments start
• End Date, key 31/12/9999 unless updating a change to the customer's circumstances

If a line exists on the FSD with an End Date after the new Start Date:

• End the existing End Date using the day before the new Start Date
• Add a new line with the new circumstance

For customers who have rolled over into the next 10-year period:

• end date the previous FSD line as 30.06.2024, and
• create a new line with start date 01.07.2024.

To record the customer's circumstances, select Yes or No from the drop down menus:

• Farm owner
• Right or Interest
• Significant Capital
• Significant Labour
• Significant Commercial Purpose or Character
• Partner as Farmer

Select Save

For all partnered customers including when the partner is not claiming FHA, complete the FSD task on both the customer and partner records.

If a change to the customer's eligibility is expected from updating the farmer specific data, complete a reassessment SSP. See Change of circumstance for Farm Household Allowance (FHA).