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 commenced 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 the achievements and outlines the options available to help 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, where an outline of the programme is provided
• When customers meet with their FHCO to review/check the customer's progress with the agreed activities. These meetings occur at least every 3 months
• At the FHCO contact to prepare the customer for their final 2 years of activities before payment stops. This meeting occurs within a week of entering the third year on payment
• When a letter is sent to customers 3 months before the expected end date, reminding them when payment will stop

To finalise preparations for the end of the payment, a final review is conducted by the FHCO within 3 months of, but no less than 2 weeks from, the end of the payment.

Services Australia may offer further assistance to customers to manage the transition off payment. Any further financial support from the Australian Government is determined by the customers circumstances.

Customers are only eligible for 1,460 days of payment of FHA.

At the end of 1460 days the customer may need to report:

• to release the final amount of FHA
• on a reporting date that is after the Predicted End Date of FHA

When the customer completes their final report:

• the final payment is released, and
• cancellation of FHA is triggered.

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

• A debt may be raised for any periods of payment not reported
• Any periods of time where the customer rate is reduced to zero are 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 that 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 only updates once the final report is processed
• payment is only made for up to 1,460 days, even when the final reporting date is after that time

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

Before the end of the customer's entitlement, the FHCO organises a meeting with the customer to address any concerns and discuss available options as they move off FHA. This meeting must be within 3 months of, but no less than 2 weeks from, the end of the payment.

The FHCO will:

• contact the customer to organise the final review
• prepare the customer for the end of their FHA payment
• review the FIAs, discuss achievements and any further options available
• offer a referral to the Rural Financial Counselling Service (RFCS). This service remains available after the completion of their 4 years on FHA for customers already working with a Rural Financial Counsellor

Customers with a predicted end date after 30 June 2024 who:

• opt to continue into the next 4 in 10-year period:
• do not need an exit interview
• FHCO may contact the customer to discuss plans for the next 4 in 10-year period
• opt out, or change their mind after opting in, will need an exit interview

FHCOs are to tell customers to access servicesaustralia.gov.au and assist them to:

• access the Payment and Service Finder, and
• make online claims where appropriate

Customers who exit the FHA programme (regardless of the reason) may be eligible for other payments and services administered by the agency, such as:

• Age Pension
• JobSeeker Payment
• Disability Support Pension

These payments are subject to Australian residency requirements and an income and assets test. Farming families traditionally hold assets that exceed the relevant threshold, which can present a barrier to them being able to access these payments. This must be considered when applying.

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

• is an interactive service, to help customers search for appropriate Services Australia payments
• allows customers to enter their individual circumstances

Extra support is available to customers who are considering:

• retiring from farming
• selling the farm, or
• handing the farm over to family members

Before they make any changes, recommend that the customer meet with a Financial Information Service Officer (FISO). This is a free service where the FISO can provide information about:

• succession planning
• what to consider when applying for the Age Pension
• the effects of selling or giving away any assets

Tell customers who

• are intending to exit farming and buy a new home:
• 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
• the amount is not exempt from deeming and is subject to the income test. See Permanent vacation of principal home
• have families with children to test their eligibility for Family Assistance Payments if they are not already on this payment

At the final review meeting for a FHA payment that is ending, the customer is provided with information and options to help with the changes. Referrals can include:

• Services Australia Social Worker for customers that are vulnerable or in hardship
• help for customers with family and domestic violence indicators, see Family and domestic violence.
• external providers such as:
• other Australian Government programmes
• state and territory or local government programmes
• community organisations
• industry groups or professional associations

The Rural Financial Counselling Service (RFCS) is available to help customers continue making changes to improve the farm's financial viability after the FHA payment stops. FHCO's offer a referral to this service at each review meeting throughout the final year of payment, including when the customer has previously declined the referral.

The RFCS provide free help to eligible farmers with:

• long term financial plans for the farm
• short term issues such as:
• negotiating loans
• debt mediation
• succession planning

Help from the RFCS continues even after the FHA stops.

Customers already connected to the RFCS can give consent for their Rural Financial Counsellor (RFC) to attend the Final FIA Review with them. Although this is not a handover process, it gives the FHCO and the RFC an opportunity to share information relevant to the customer's future goals and plans. This helps the customer to continue working towards improving the farm's financial viability.

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