Drought Resource Pack
Australia’s changing climate means drought is a matter of when, not if. Farmers and rural communities are increasingly experiencing the effects of prolonged dry conditions—impacting their businesses, livelihoods, and overall well-being. There are plenty of tools available for support in preparing for and enduring drought.
All the resources listed below are also on the AIR EP Website in our “Tools & Resources” page under “Drought Support Tools”
- Farm Household Allowance Call the Farmer Assistance Hotline on 132 316 or visit Services Australia for more information.
- Rural Financial Counselling Service Call 1300 771 741 to access free, confidential and independent financial counselling if you’re an eligible primary producers or small businesses experiencing, or at risk of, financial hardship.
- Farm Business Resilience Program Access subsidised training and coaching to help you achieve your farm business goals.
- My Climate View Explore climate information for your location and commodity, wherever you are across Australia.
- Farm Management Deposits Set aside pre-tax income in high income years that you can draw on in future years when you need it.
- Tax deductions Deductions for infrastructure such as fencing, dams, pumps, silos, bins, land care operations, and carbon sink forests.
- Concessional loans Regional Investment Corporation (RIC) loans – for long term viable farm businesses in financial need – can also be used for drought preparedness purposes.
- Tax support Call 1800 806 218 to ask the ATO for more time to lodge and pay tax. Talk to a registered tax professional about other concessions, such as spreading or deferring profits from the forced disposal or death of livestock.
- Social support and wellbeing Call Lifeline Australia on 13 11 14 for immediate support or visit Head to Health for a list of other services that can help.
Visit drought.gov.au to learn more about Australian Government drought support programs and find links to state and territory governments and the services and resources they offer.
Farm Business resilience program
Farmers can access subsidised training, coaching and business planning support through the Farm Business Resilience Program.
The program, supported by the Australian Government’s Future Drought Fund, can help farmers build a sustainable business by planning today for tomorrow’s drought and climate risks.
If you’re a farm owner, manager or employee, it offers:
- subsidised learning and development opportunities through individual and group activities and events
- an assessment of your business’s performance, to identify opportunities to build resilience and help track progress
- support to develop or update a business plan, tailored to your farm
- access to one-on-one professional advice on your plan
- practical tools and resources to take back to the farm.
The program covers business management strategies, new farming practices, systems and markets, drought risk management techniques, diversification options, climate tools, data in farm decision-making, farm safety and workforce planning, succession planning, and more.
It also connects farmers to others in their region or industry who face similar risks and opportunities.
Tens of thousands of farmers have already taken part in the Farm Business Resilience Program. It is available across the country, delivered through state and territory governments.
Find out what’s happening in your jurisdiction:
Farm Household Allowance
Farm Household Allowance helps commercial farmers and their partners who are experiencing low cash for any reason.
The program provides eligible farmers and their partners with a package of assistance that includes:
- up to 4 years of fortnightly income support (in every 10-year period)
- a Health Care Card and other allowances
- a professional financial assessment of the farm business (worth up to $1,500)
- funding to help develop skills, access training and pay for professional advice (up to $10,000 per person)
- regular tailored support of a case manager.
Who’s Eligible?
To qualify for FHA, you must meet qualification requirements and an income and assets tests. Each application is assessed on a case-by-case basis and people should not self-assess. Everyone who is eligible will get paid.
To qualify, among other things, you must:
- Be a commercial-scale farmer or their partner
- Be an Australian citizen or permanent resident
- Be at least 16 years old
- Have a right or interest in land used for a farm enterprise
Specialist staff on the dedicated Farmer Assistance Hotline can explain eligibility requirements and ways to apply.
Assets test
The net asset limit (or equity) is $5.5 million. There seems to be confusion about this threshold. It is true that farm prices have risen greatly over the last decade. That’s why the asset limit more than doubled in 2019. However, it is really important to know that you deduct any debts before you estimate the value of your assets. In addition, any estimate you give should take into account the current conditions and be based on a walk in/ walk out amount that can be reasonably expected in current market.
Off-farm income offset rule
The FHA program recognises that many farming families rely on off-farm income to smooth out their shifting finances. That is why up to $100,000 of a current farm loss can offset any other income earned by you or your partner.
Need Help or Have Questions?
Call the Farmer Assistance Hotline at 132 316 or speak with a Rural Financial Counsellor—for support that can guide you through your options at no cost to you. You can also visit:
🌐servicesaustralia.gov.au/farmhouseholdallowance
If you would like to read about the program settings, we have plain English guidelines and factsheets available on the web.
New videos featuring real farmers who’ve benefited from the FHA are now available online—offering firsthand insights into how the program can make a difference.
Tax Concessions
Primary producers can access Australian Government tax concessions to help them build their reserves and manage risks like drought.
Some tax measures can help you improve your cash flow and strengthen your farm business.
These measures include:
- Farm Management Deposits, which let you set aside pre-tax income in high-income years and draw on it in future years when you need it.
- Tax averaging, which evens out your income and tax payable so you don’t pay more tax over time than others on similar, but steady, incomes.
- Immediate deductions for infrastructure such as farm fencing, pumps and pipes, dams, fodder sheds and silos.
Other tax measures can help you through tough times such as drought.
They include options to spread or defer income received due to drought, disaster or emergency animal disease outbreaks – for example:
- profit from the forced disposal of livestock
- proceeds from double wool clips, when circumstances force you to shear your sheep earlier than usual
- insurance payments for loss of livestock or trees.
Farmers in financial difficulty can also ask the Australian Taxation Office (ATO) about:
- adjusting pay as you go (PAYG) instalments to better suit their circumstances
- providing more time to pay, including payment plans with interest-free periods.
Call the ATO emergency support line on 1800 806 218 sooner rather than later to learn more.
Visit ato.gov.au or talk to a registered tax professional to see what tax measures apply to you.
Rural Financial Counselling
Eligible farmers and related small businesses facing financial hardship can access free and independent financial counselling to help them get back on their feet.
The Rural Financial Counselling Service, jointly funded by the Australian, state and territory governments, aims to build farm businesses that are profitable, financially self-reliant, and better prepared to deal with risks.
Under the program, you can talk confidentially to a qualified rural financial counsellor in your state or region about your financial situation. They can help you:
- develop budgets and cashflows to better understand your financial position and the viability of your business
- develop an action plan and take the necessary steps to get you out of financial difficulty
- negotiate with your lenders
- build your financial knowledge and skills so you can manage potential challenges in the future
- identify other government programs that can improve your self-sufficiency, including Farm Household Allowance.
Your rural financial counsellor can guide you through the process so you can make your own decisions and:
- move out of financial crisis
- improve your financial well-being and resilience
- improve your business profitability, or
- exit the business through sale or succession.
Find your local RFCS:
Call 1300 771 741 for more information.