Understanding Farm Household Allowance: Support for Farmers

Farm Household Allowance (FHA) is a critical support program designed to assist Australian farmers and their partners facing financial hardship. Whether due to unexpected weather conditions, illness, or market changes, FHA offers a safety net to help farming families regain stability.

What is Farm Household Allowance?

FHA provides eligible farmers with income support, delivered at the same rate as the JobSeeker Payment or Youth Allowance, for up to 4 years within a 10-year period. This allowance can be utilized as needed and does not have to be claimed consecutively. In addition to income support, FHA offers access to a $10,000 Activity Supplement to fund skill development or financial advice, and up to $1,500 for a professional financial assessment. Recipients also receive a Health Care Card, providing further cost-of-living relief.

How the Activity Supplement Can Help

The Activity Supplement is a significant part of the FHA program, designed to help farmers build resilience and improve their financial stability. The $10,000 supplement can be used for a wide range of activities, including accessing expert advice, training, and professional services that can enhance both on-farm and off-farm skills. For example, farmers can use the funds to hire agronomists, attend business courses, or seek financial planning advice. This support enables farming families to not only address immediate financial difficulties but also to build a stronger, more sustainable future.

Who is Eligible?

Eligibility for FHA depends on meeting specific income and asset tests, with net farm and personal assets needing to be below $5.5 million and income must be below the cut-off for the JobSeeker Payment income test amount (see Cut-off points tables below). It’s essential not to self-assess eligibility but to apply and allow Services Australia to determine your qualification.

Source: Services Australia website

How CoggerGurry Chartered Accountants Can Help

Applications can be submitted online through a myGov account linked to Centrelink. For those unable to apply online, paper forms are available. At CoggerGurry Chartered Accountants, we understand the complexities of managing farm finances, especially during challenging times. Our team can guide you through the FHA application process, ensuring all necessary documentation is complete and accurate. We can also assist in making the most of the Activity Supplement by connecting you with relevant experts and advisors. Whether you need help with financial planning, business strategy, or improving your farm operations, we can support you in utilizing these funds effectively.

For personalized assistance, contact CoggerGurry Chartered Accountants today and let us help secure your financial future.

< Older Post

Newer Post >

Making Electronic Signing Easier for You

By Cogger Gurry • August 29, 2025

We’re excited to share that we’ve upgraded our client signing experience—now powered by FuseSign! This intuitive, secure platform lets you sign documents in minutes (not days), straight from any device, and is simple to use. There’s no need to download apps or remember passwords - just click the link, review your documents, and sign. With industry-leading security and a smooth, hassle-free process, signing important documents has never been faster or easier. You can find out more about FuseSign Here

Understanding The 20% HECS-HELP Debt Reduction

By Cogger Gurry • August 29, 2025

As part of its re-election commitment, the Federal Government has passed legislation to reduce all outstanding HECS-HELP debts by 20%. The Bill passed the Senate on 31 July 2025 and will come into effect once it receives Royal Assent. The reduction will be applied retrospectively to student loan balances held as at 1 June 2025. While many borrowers have recently seen their loan balances increase due to the 3.2% annual indexation, the Government has confirmed that the 20% discount will be calculated based on the loan amount before indexation was applied. How the Reduction Will Work: Once the legislation is in effect, the Australian Taxation Office (ATO) will automatically apply the 20% reduction to eligible student loan accounts. Indexation will also be recalculated using the reduced loan balance, delivering further relief for borrowers. This change builds on previous reforms that now link indexation to the lower of the Consumer Price Index (CPI) or Wage Price Index (WPI), rather than CPI alone, an approach designed to ease the financial pressure on graduates. Lodging Your Tax Return: If you’re getting ready to lodge your tax return, you don’t need to delay. The ATO will automatically apply the discount in the coming months. If you’ve fully repaid your student loan since 1 June 2025, you may be eligible for a refund equivalent to the 20% discount (subject to any other outstanding tax liabilities). Other Changes to Student Loan Repayments: The legislation also introduces changes to repayment thresholds. From 1 July 2025, the minimum income threshold for compulsory student loan repayments will increase from $54,435 to $67,000, making repayments more equitable. If you have any questions about how these changes may affect you or your tax return, please get in touch with CoggerGurry today, we’re here to help. Tel: 03 5571 0111

Division 296 Tax Update

By Cogger Gurry • August 29, 2025

Parliament has resumed, and we are watching closely for the introduction of the Division 296 tax Bill to the lower house. While the Government is managing a number of priorities, the extra time provides us with the opportunity to continue planning with clients who may be affected and to ensure we are ready when the legislation is finalised. Although no update has been given on whether the 1 July 2025 start date will be deferred, we’ll keep you informed as soon as there is more clarity. In the meantime, rest assured that we are monitoring developments carefully and will provide guidance and advice as soon as the position becomes clearer.