Rural Law Online

Exceptional Circumstances Relief Payment

Exceptional Circumstances Relief Payment is an income support payment provided to eligible farmers and agriculture-dependent small business operators, and their dependants, who live in certain geographical areas.

It is paid at the same rate as Newstart Allowance. There is no activity test for this payment.

To be eligible, the Minister for Agriculture, Fisheries and Forestry must first declare that your area is affected by “exceptional circumstances”. Common examples of exceptional circumstances include drought, fire and flood, although others may occur. Note that exceptional circumstances relate to situations occurring across your community.

The next step is that you must show that you are a farmer who contributes a significant part of [your] labour and capital to the farm enterprise” and “derives a significant part of [your] income from the farm”.

Alternatively, you must show that you are a person who runs a small business [with an ABN] who:

  • contributes a significant part of [your] labour (Government policy sets this at 75%*) and capital to the business
  • derives a significant part of [your] income (Government policy sets this at 50%*)from the business
  • normally derives at least 70% of the gross income of your business from the supply of goods or services to farmers for use in farming in your area
  • demonstrates that the gross income of [your] business has been significantly reduced because of the effect of the exceptional circumstances.

*Note that the percentages can be appealed if you believe that a significant part of your labour or income are involved in the business..

A final alternative is that you run a small business of up to 100 employees (full-time equivalent) in a town of under 10,000 people. In this case, you must also demonstrate that you:

  • contribute a significant part of [your] labour (Government policy sets this at 75%*) and capital to the business
  • derive a significant part of [your] income (Government policy sets this at 50%*) from the business
  • normally derive at least 50% of the gross income of your business from the supply of goods or services to farmers, farm workers and their families in your area
  • demonstrate that the gross income of [your] business has been significantly reduced because of the effect of the exceptional circumstances.

*Note that these percentages can be appealed if you believe that a significant part of your labour or income are involved in the business.

There is also a specific assets test for this payment.

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