Fourth year exit pathway for Farm Household Allowance (FHA) customers 002-17032100

Eligible farmers and their partners can access up to 4 years of payment (counted as 1,460 days).in each specified 10 year period. The next 10 year period commences on 1 July 2024. This is designed to give farm families time to get back on their feet and the opportunity to take steps to improve their circumstances.

The Activity Supplement of up to $10,000 with a lifetime cap is available to assist customers undertake activities specified in their financial improvement agreement (FIA). There is no longer an 'additional activity supplement', and no need for the customer to undertake 'high value' activities to access any part of the activity supplement.

When the end of the 4 year entitlement period approaches, the FHCO meets with customers to discuss their circumstances. The FHCO looks at what has been achieved, and outlines available options that may assist customers make the transition to being financially self-reliant.

Customers receive regular reminders that the FHA payment can be made for a maximum period of 4 years, these include:

• During the claim process, in both the online claim and the paper claim form
• At the initial meeting with the FHCO, an outline of the programme is provided
• Customers meet with their FHCO at least every 3 months to review/check the customer's progress with the agreed activities
• FHCOs contact the customer within a week of them entering the third year on payment, to prepare the customer for their final 2 years of activities before payment stops
• A letter is sent to customers 3 months before the expected end date reminding them when payment will stop

A final review is conducted by the FHCO to finalise preparations for the end of payment. The review is to be no earlier than 3 months, but at least 2 weeks before payments are due to stop.

On stopping of payment, Services Australia may offer further assistance to customers to manage the transition off payment. Their circumstances will determine the options available for them to obtain further financial support from the Australian Government.

Services Australia will send customers, with a predicted end date after 30 June 2024, a letter to tell them the new 10 year period starts from 1 July 2024.

Customers will have the option:

• to 'opt out' and their payments will cancel on 1 July 2024, or
• not to ‘opt out’ or not provide a response. They will:
• 'roll over' into the next 10 year period
• have their clock reset to 1,460 available FHA days
• Note: FHA days not used within the 10 year period will remain unused and will not roll over

Customers are only eligible for 1,460 days of payment of FHA. At the end of this time:

• customers may be required to report one last time to release the final amount of FHA up to the 1,460 day mark
• this reporting date may be after the Predicted End Date of FHA

When the customer completes their final report, this will release their final payment and trigger the cancellation of FHA.

Where a customer does not report and their FHA then cancels 'Failed to Report (FRP)':

• a debt may be raised for any periods of payment not reported and normal processes will apply
• any periods of time where the customer rate is reduced to zero will be added back to the customer's FHA eligibility and the customer can then access this time back on FHA

Normal review and appeal processes apply.

Staff must check and ensure customers are aware of:

• their final reporting requirements for FHA
• how this impacts the delivery of their final payment of FHA and cancellation notification

Staff must remember the:

• FHA clock will only update once the final report has been processed
• customer will only receive payment for up to 1,460 days of payment, even when their final reporting date is after that time
• cancellation of FHA will only trigger once the customer has reported for the last period

FHCOs meet with customers at least every 3 months to review and test the customer's progress with the agreed activities.

Most contact with the customer is by phone with at least 2 face-to-face meetings. Customers will usually have a face-to-face meeting:

• within the first 2 years of getting FHA
• when they enter their fourth year of getting FHA

Conducting the final review

When the end of a customer's entitlement is imminent (within 3 months but no less than 2 weeks from the end of payment), the FHCO contacts the customer to undertake the final review and prepare them for FHA payments ceasing. They will look back over their FIAs to see what has been achieved and discuss options available as they move off FHA.

Preparing the customer prior to the payment ceasing has the benefit of addressing their concerns in a timely manner and preventing the customer contacting the agency seeking assistance after eligibility for payment has ended.

Offer a referral to the Rural Financial Counselling Service (RFCS). If the customer is already working with a Rural Financial Counsellor, the service remains available to them after they have completed their 4 years on FHA.

Note: an exit interview is not required for customers with a predicted end date after 30 June 2024 who have opted to continue into the next 4 in 10-year period. However, the FHCO should contact the customer and discuss plans for the next 4 in 10-year period. If the customer changes their mind and elects to opt out, an exit interview is required.

FHCOs are to advise customers to access servicesaustralia.gov.au including assisting them to access the Payment and Service Finder and to make online claims where appropriate.

Service Officers must tell customers about the Payment and Service Finder at servicesaustralia.gov.au. This service:

• will assist customers to check for the most appropriate services and payments based on their circumstances
• is an interactive service, which helps people search for payments they may be eligible to receive from Services Australia

Customers who exit the FHA programme (regardless of the reason) may be eligible for other payments and services administered by the agency. A person can test their eligibility for income support payments such as Age Pension, JobSeeker Payment or Disability Support Pension, however all of these are subject to Australian residency requirements and an income and assets test. As farming families traditionally hold assets that exceed the relevant threshold, this presents a likely barrier to them being able to access these payments.

If a customer is thinking about retiring from farming, they may be considering selling the farm or handing it over to family members. Customers can see a Financial Information Service Officer (FISO) to get free information before making any decisions. The FISO can provide information about succession planning and what to consider when applying for the Age Pension. Before a customer sells or gives away any assets, they should find out how the Age Pension payment may be affected.

Note: if the customer intends to exit farming and buy a new home elsewhere, some of the proceeds of the sale of the farm and principal home may be exempt from the asset test for up to 12 months. However, the amount is not exempt from deeming and is subject to the income test. See Permanent vacation of principal home.

Family Assistance Payments are available for families with children and while most eligible families are already receiving their entitlement, it is important to remind them about the availability of this assistance.

During the final review meeting the customer might be offered referrals to specialist services and provided with information about options available to assist them manage the impending change.

If the customer displays anxiety about what will happen after FHA stops, they can talk to a Services Australia Social Worker who offer services to customers who are vulnerable or in hardship.

Referrals can also be made to assist the customer connect with external providers such as other Australian Government programmes, state and territory or local government programmes, community organisations, industry groups or professional associations.

After FHA payments stop, the Rural Financial Counselling Service (RFCS) is the primary point of influence for customers as they continue making change to improve their farm's financial viability. At each review meeting during the final year of payment, FHCOs will encourage customers to take up a referral to the RFCS. This occurs even where previous referrals have been refused.

The RFCS provide free help to eligible farmers with their long term financial plans for their farm, or help with short term issues like negotiating loans, debt mediation and succession planning. The RFC will continue to assist customers regardless of whether they receive FHA or not.

Customers already working with the RFCS may agree to have their Rural Financial Counsellor (RFC) participate with them in the Final FIA Review. This will assist the customer to maintain an active relationship with the RFC as they continue enacting their improvement activities and plans into the future. While this should not be viewed as a hand-off from the FHCO to the RFC, it is an opportunity to share information relevant to the customer's future goals and plans.

Note: the customer must give their consent to have the RFC attend the Final Review.

The Resources page includes a link to the National Emergency Management Agency website for information about the RFCS.