Farm Financial Assessments (FFA) 002-02070010

An FFA is an assessment of the financial position of the farm enterprise, the customer and their partner. It is completed by the customer and their financial assessor. The assessment forms part of a customer's mutual obligations for Farm Household Allowance (FHA) and if not provided, may result in FHA not being paid.

The financial assessor is a person:

• who has appropriate qualifications or expertise to conduct the assessment, and
• is independent and has no right or interest in the farm, or any asset owned by the customer, or the partner of the customer

The Farm Household Case Officer (FHCO) will use the FFA when negotiating a Financial Improvement Agreement (FIA) with the customer.

Customers are required to obtain an FFA if they are:

• claiming FHA for the first time
• reclaiming FHA after a significant break in payment, and there has been a change in circumstances for the customer and/or farm enterprise
• receiving FHA and there has been a significant change in circumstances for the customer or farm enterprise

A previous FFA may be used if the details have not changed significantly since its completion.

If a customer and their partner are claiming FHA, they can complete a single FFA if the customer agrees to link their FFA to their partner.

New claims: After the grant of the new claim and any applicable waiting periods served, the customer will be allocated to a Farm Household Contact Officer (FHCO).

Second FFA: A Second FFA may be requested for customers receiving FHA in instances:

• where the farm enterprise has undergone significant changes, and
• continued entitlement to FHA has not been determined

Changes to the farm enterprise may include:

• significant increases or decreases in size or scale of operations
• changes in business structure, or
• change to commodities farmed

FHCO's determine if the existing FFA is still appropriate by applying a case by case approach. Where entitlement to FHA is in doubt, a review of circumstances is to be undertaken first. Where entitlement is lost a second FFA is not to be requested. FHCO's can refer the file via the Notification in change of circumstances Fast Note to the processing team.

When discussing the requirement to enter into an FFA, to help the customer complete Part A, the FHCO must explain what related businesses are to the customer.

Where a FFA cannot be completed for an extended period (for example 2 months), FHCO's manually initiate the customers first Financial Improvement Agreement (FIA). In these circumstances, the FFA is not waived but included as an activity in their FIA.

Customers will receive a letter advising they need to obtain an FFA. The FFA request is generated after a new claim has been granted.

This letter includes:

• information on how to complete the FFA
• FFA supplement voucher for up to $1,500 (GST inclusive) to meet the cost of completing the FFA
• One Time Access Code (OTAC) for their financial assessor to access the FFA via the Farm Information Portal on the Services Australia website

Note: unless the FHCO identifies any vulnerabilities or special circumstances during the initial or subsequent contact, the FFA will be completed and returned to Services Australia within one month of the customer being assigned to the FHCO. If the customer experiences difficulty obtaining the FFA by the due date, they should contact their FHCO or the Farmer Assistance hotline 132 316. One extension may be granted by the FHCO. The timeframe for the extension is determined by the FHCO based on the customer's circumstances. See Farm Household Case Officer (FHCO) cases.

From 27 March 2020 the 28 day timeframe to complete the FFA was removed. FHCOs determine the due date of the FFA based on the customer's circumstances.

Failure to provide the FFA may result in their FHA payments being suspended.

The FFA request can be withdrawn:

• in extraordinary circumstances, and
• if the provision of an extension of time is not appropriate for the situation

FHCOs can make the decision to withdraw the FFA request in extraordinary circumstances. Withdrawing the FFA will initiate the customer's FIA. The FFA must be included in the customer's FIA, to be completed when the customer is able to comply with the request.

When requested to provide an FFA, the customer must:

• access their Centrelink online account to complete the About you section (referred to as Part A) of the FFA. See How users create a myGov account and link services and Using myGov accounts:
• Online menu option: Payments and Claims > Farm Financial Assessment
• identify a service provider who meets the definition of a financial assessor, for the purpose of completing the FFA. A financial assessor must:
• have the appropriate qualifications or expertise to conduct the FFA
• be independent and have no right or interest in the farm or any asset owned by the customer or the partner of the customer
• obtain a quote from a financial assessor, for the cost of completing the FFA and make an appointment. The FFA supplement covers the cost up to $1,500
• attend the appointment with the financial assessor to discuss their financial position and suggestions for improvement. The customer must take the following documents to the appointment:
• their FFA request letter and voucher
• copies of tax returns and financial statements for the last 3 years
• any current or recent business, agronomy or financial plans
• details of their current income (including Centrelink payments, off-farm employment income, rental income), any superannuation payments, annuities and other income
• details of their assets and investments
• details of any personal or business debts
• details of planned expenditure such as child/ren's education and maintenance expenses
• any additional financial information they provided for their FHA claim

If customers do not have reliable internet access, see Table 2 on the Process page for more details.

Once the FFA is completed, the financial assessor may prepare an invoice. The customer must submit to Services Australia:

• the invoice with their FFA supplement voucher
• evidence of the financial assessor's qualifications, and current membership of a professional body

During the FFA appointment, the financial assessor:

• discusses with the customer (and their partner) their financial position and the financial position of the farm enterprise, including strengths, weaknesses and suggestions for improving the financial position of the farm business
• completes the farm information sections of the FFA. See Table 2 on the Process page for more details

Note: financial assessors have 'Implied Authority', therefore staff must help them if they contact about completing a customer's FFA. The Resources page contains details for staff.

The financial assessors will complete an assessment, which includes:

• a Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis,
• statement of their professional opinion, and
• an overall report of the potential financial position and long term viability of the farm

The financial assessor is expected to discuss their assessment with the customer and provide them with a copy of the completed FFA.

If the preparation of the FFA incurs a charge, the financial assessor will prepare an invoice for the cost of completing the FFA, which the customer must return to Services Australia within 2 months of the date on the invoice.

Once all parts of the FFA have been submitted, it must be reviewed by the FHCO before being accepted. For payments to continue, the information in the FFA must support the customer's eligibility for FHA. Accept the FFA if the information supports the customer's grant of FHA. Where the FFA does not support eligibility for FHA, refer the file to the processing team for review. See Change of circumstance for FHA.

Incomplete or inadequate FFA's

If the FHCO identifies the submitted FFA is incomplete or lacks details, the FHCO escalates the FFA to FHCO National Support. Advice to accept, reject or follow up the FFA will be provided on a case by case basis.

If a customer requests a copy of their completed FFA, FHCOs can supply this at any time, even when a financial assessor prepared the FFA. When providing this to the customer, Service Officers must:

• print the FFA
• mail it or give it directly to the customer, and
• record on the customer's record if it has been provided

Note: FFAs must not be emailed under any circumstances due to privacy restrictions.