Farm Table says:
In this article on Farming Ahead, James Benson gives some insight into Australian Government support for succession planning.
Depending on the family’s circumstances, the cost of succession planning can be recovered in full or in part through the Farm Household Allowance (FHA).
- provides fortnightly income support to farmers up to a maximum of three cumulative years while they take action to address their long-term financial security.
- three-year period designed to provide recipients with sufficient time to develop strategies for self-reliance and to create an incentive to make significant business decisions.
- this may include the development of a succession plan.
- must be a significant labour and capital contribution by the farmer to their enterprise and they are required to be in effective control of the farm.
- The allowance can apply to a farming couple even where one member of the couple is not carrying out farming duties.
- must be willing to enter into a Financial Improvement Agreement (FIA). An FIA is a planning tool for farmers and their partners to work towards improving their capacity.
- includes both assets and an income test.
- during the first two years can access up to $3000 and in the final year, they can access a further $1000.
- this can be applied to each partner if they both work on the farm. Therefore, the total claim can be up to $8000.
Contact your local DHS office to discuss this allowance.