Succession planning recognised for drought-affected farmers

by S. C.

The Rudd Government has acted to ensure farmers who want to pass their farms on to their children can still access Exceptional Circumstances drought income support.

It follows concerns raised by some producers that the system prevented them from accessing drought income support if they passed their properties or other assets on to the next generation.

Previously, the value of a farmer’s land or assets were included in the eligibility test for drought support, even if the land or assets had been passed on up to five years ago.

This was seen as a disincentive for farmers to plan for family succession in the business.

Minister for Agriculture, Fisheries and Forestry Tony Burke said the changes recognised that farm businesses were different to other workplaces.

“So many farmers have an incredibly strong connection with their property because it is not just their workplace, it’s also their home,” Mr Burke said.

“Generations of family history are tied up in these properties and can be preserved when the farmland is passed to the next generation.”

Farmland and essential farm assets which have been passed on as part of a succession plan are now exempt from the drought income support asset test.

This exemption will apply where farmland and assets are considered essential to the running of the enterprise, provided the farmer continues to farm and maintain a right or interest in the farmland.

Producers are encouraged to discuss their individual circumstances with Centrelink by calling the Drought Assistance Hotline on 13 23 16.

Mr Burke said the Government was also continuing to talk to farmers and industry groups about finalising proposed reforms to drought support.
“The current system of drawing lines on a map is not working – it means one farmer may be eligible for drought support, while their neighbour over the fence may not be,” Mr Burke said.