Rate and payment of Farm Household Allowance (FHA) 002-03030000

The FHA rate for a customer aged:

• 21 years or under is equivalent to the independent rate of Youth Allowance (YA)
• 22 years or over is equivalent to the rate of JobSeeker Payment (JSP)

From 11 June 2020, all FHA customers receive the maximum rate of payment if their FHA rate of payment is greater than zero dollars after the income test is applied.

The income test for FHA is linked to the allowance income and assets tests for YA/JSP. However, key differences apply when assessing income for FHA, including:

• The customer's estimate of farm business income is:
• combined with the income from any directly related businesses, and
• used to apply the FHA income test
• The total farm business losses can be used to reduce non-farm income:
• up to $100,000 per couple
• per financial year
• From 11 June 2020, a single asset test was introduced for FHA. It combines personal and farm assets into one asset test with a threshold of $5.5 million

Working Credit provisions do not apply for FHA.

Employment income nil rate provisions can apply.

A customer's rate may include additional entitlements depending on the customer's circumstances.

The following are payable with FHA:

• Bereavement Payment
• Energy Supplement - A higher rate of Energy Supplement is not paid to customers over pension age
• Pharmaceutical Allowance (PhA) - Eligibility for PhA is different for FHA customers:
• PhA is payable to FHA customers at standard rates if they:
  - are a single principal carer of a dependent child, or
  - have been granted a temporary incapacity exemption (supported by a medical certificate) from the activity test
• PhA is not payable for FHA customers who are aged 55 years or more and have been in receipt of an income support payment for at least 9 months, unless they also meet the criteria above
• The PhA and Energy Supplement payments incorrectly received before 1 July 2017 will not be raised as a debt to the customer and should be waived if a debt shell is generated
• Remote Area Allowance (RAA)
• Rent Assistance (RA)
• Telephone Allowance (TAL)

Energy Supplement, PhA and RA are added to the rate of FHA before the income test is applied.

A Health Care Card (HCC) is automatically issued to the customer when FHA is granted.

Customers with children in their care may also claim family assistance.

FHA is a taxable payment. Customers can request to have tax deductions made from their FHA payments.

Customers claiming or receiving family assistance and Paid Parental Leave scheme payments must include FHA payments in their income estimate used for those payments.

FHA customers can apply for an advance payment by calling the Farmer Assistance hotline on 132 316.

Advance payments:

• are not an additional payment
• are a lump sum payment of the customer's future FHA entitlement
• cannot be paid in instalments, unlike other advance payments
• is repaid through fortnightly deductions from the customer's FHA payments

Eligibility for an advance payment and the amount of the advance payment are assessed as for other non-pension customers.

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When FHA is granted or restored, a hardship advance can be paid if the customer is in severe financial hardship. This is an advance of the customer's first FHA payment.

Upon the customer's request, eligibility for a Hardship Advance is assessed as for social security allowances.

This is also an opportunity to identify customers who may be experiencing vulnerability.

FHA customers in financial hardship can ask to receive part of their FHA entitlement before the day it would normally be due to be paid.

Upon the customer's request, eligibility for an urgent payment is assessed as for social security allowances.

This is also an opportunity to identify customers who may be experiencing vulnerability.

FHA customers are required to report 6 weekly by default. Customers are still obliged to notify within 14 days of changes in their circumstances that can affect their FHA payments.

If the customer or their partner receives variable income from ongoing employment, they are required to report 2 weekly.

Customers can report on their Entitlement Period End Date (EPED):

• using their Centrelink online account
• using phone self service
• by calling the Farmer Assistance hotline

To record employment income, see Recording and correcting employment income details.