Exceptional Circumstances (EC) assistance is the Australian Government's main program for providing direct assistance to farmers experiencing drought. EC support is provided to ensure that farmers with long-term prospects for viability will not be forced to leave the land because of short-term events beyond their ability to manage.

The Commonwealth Government has made some important changes to the EC policy and plans to make more with the agreement of the States and Territories.

The current Exceptional Circumstances policy is detailed in the Exceptional Circumstances Handbook, September 2006. A copy of this handbook, together with further details about the EC policy and current EC declared areas can be found online at: www.daff.gov.au.

This handbook provides an overview of the information required in an Exceptional Circumstances application, as well as the process the Australian Government uses to assess EC applications submitted by State and Territory governments. It also provides a summary of the benefits available to producers and small businesses in EC-declared areas.

Farmers in areas under assessment for a declaration as an EC region are also eligible for six months interim support (EC Relief Payments) from Centrelink. To apply, call Centrelink on 122316 or go to www.centrelink.gov.au.

This is a scheme for farming families who are experiencing financial hardship and who cannot borrow further against their assets. Farm Help assists farmers to improve their financial situation through improving their farm's performance, gaining new skills through training, obtaining off-farm income for up to 12 months or re-establishing themselves outside of farming. A re-establishment grant of up to $50,000 is available for eligible farmers who decide to leave farming. It is not necessary to sell the farm to receive Farm Help. Contact the Centrelink Farmer Assistance Line on Freecall 1800 050 585 or visit www.daff.gov.au/farmhelp.

Future Options – Ways Forward For Farm Families is a new interactive CD-ROM to help farm families who are experiencing financial difficulty to manage change and identify strategies to improve their long-term prospects. You can get a free copy of Future Options by calling (02) 6272 5787. (It is also available on video).

Rural Financial Counselling Service funded through the Commonwealth Department of Agriculture, Fisheries and Forestry, provide free and impartial financial counselling to primary producers and small rural businesses who are suffering financial hardship and who have no alternative sources of impartial support. Counsellors will also direct you to other appropriate support services and personal counselling services where required.

You can get information about this service, on 13 23 16 or 1800 026 222 or by visiting www.daff.gov.au.

To locate a Counsellor near you, the Victorian and Tasmanian Rural Counselling Group website is also available at www.vtarcg.org.au

Centrelink also offers free and confidential financial and personal counselling. Call 13 23 16 or go to www.centrelink.gov.au.

If you lose work or income as a result of any drought, you may have a more flexible and simpler access to Commonwealth income support schemes provided by Centrelink, such as New Start or the Youth Allowance. To be eligible you need to show that for your livelihood you work in an industry that is reliant on farm production.

Students whose parents are receiving EC Relief Payments are exempt from the Youth Allowance Parental Means Test and may be entitled to the maximum payment rate.

Contact Centrelink Drought Assistance Hotline on 132316 or go to www.centrelink.gov.au.

The work for the dole program has been extended to help communities severely affected by drought. This initiative gives people who lose their job because of the drought, and other suitably skilled unemployed people from the local area, the opportunity to work on properties or community projects in drought affected areas. Participants will have immediate access to a training credit of $800 when they begin their first Drought Force activity, allowing them to combine learning with working.

For information about the Drought Force program, call 13 62 68 or email: droughtassist@daff.gov.au or visit www.workplace.gov.au.

The government has made changes to Job Network services to make it easier for job seekers to get help. These changes include:

Further information can be gained from your local Job Network office:

call 13 62 68 or

visit www.workplace.gov.au.

Under the Income Tax Assessment Act 1997 farmers and rural businesses may claim taxation rebates or deductions on expenditure used to treat and prevent land degradation, including conserving and conveying water to lessen the effects of drought. The Commonwealth booklet A guide to tax incentives for land care practices (January 1999) outlines the incentives available and the eligible land care practices.

Under the Income Tax Assessment Act 1936, capital expenditure on water storage facilities for livestock and water transport facilities may be eligible for a tax deduction of 10 per cent, as a drought investment allowance (up to certain limits). Such water storage facilities include dams and tanks, the bases, stands and covers for tanks, and other structures or improvements for storing water.

Water transport facilities that are eligible for a drought investment allowance deduction include bores, wells, pumps, windmills, pipes, water towers, header tanks, or other structures or improvements used on particular land to transport water.

A drought investment allowance deduction can only be claimed for water storage or water transport facilities that are part of an approved water conservation plan. Such a plan would consist of a map (or drawing or aerial photograph, etc.) at a scale suitable for farm planning, and supporting documentation. The plan should show the location and type of structures or improvements for storing/transporting water that will help improving drought preparedness and that will not have a significant adverse effect on water quality or availability in areas beyond the land.

The Department of Agriculture, Fisheries and Forestry Australia maintains a register of individuals who have been authorised to approve water conservation plans. In Victoria the DSE maintains the list of authorised people. (See DSE Landcare Note LC0014: Who can approve land management plans for taxation purposes?.)

You can discuss the Australian Taxation Office's (ATO) special taxation measures for farmers affected by drought by calling the ATO on 13 28 66 (follow the prompts for specific information relating to primary producers). This service is available Monday to Friday 8 a.m. to 6 p.m.

If you're having trouble paying your taxes because of the drought (or similar circumstances), you may be able to organise an extension of time to pay, or work out, an interest-free instalment plan. Call the Tax Office on 13 11 42or visit www.ato.gov.au.

The Natural Heritage Trust Envirofund assists community groups and individuals to undertake work to protect biodiversity and manage natural resources in local regions. Grants of up to $30 000 are available. The fund is run by the Commonwealth Government.

The Natural Heritage Trust Envirofund assists community groups and individuals to undertake on-farm environmental work or work that improves sustainable agricultural practices. Grants of up to $50 000 are available. The fund is run by the Commonwealth Government.

Interested persons should call 1800 065 823 or try the web site address www.nht.gov.au/envirofund

Some farmers may also be eligible to receive a taxable cash reimbursement to cover up to half the cost of developing a farm environmental management plan. Up to $3 000 is available through the Environmental Management Systems Incentive Program. For more information contact Freecall 1800 050 585 or visit www.daff.gov.au/emsip

This scheme enables primary producers to set aside pre-tax income in good years and to realise tax liabilities in bad years. This helps farmers better manage their financial risk and smooth their earnings which can vary a lot from year to year.

To view a web page containing further information go to the Commonwealth Department of Agriculture, Fisheries and Forestry website - www.daff.gov.au or call 13 23 16.

The Commonwealth Regional Information Service provides information on a range of Commonwealth assistance programs for rural and regional communities on 1800 026 222 (Monday to Friday, between 9am and 6pm).

To view a web page containing a list of Commonwealth Government drought assistance programmes go to the Department of Agriculture, Forestry and Fisheries website - www.daff.gov.au.

The Commonwealth has provided a new amount of $4million to the Country Women's Association (CWA) to help meet immediate household needs of farm families and to fund community-based activities. For further information you should contact your State or local CWA branch.