Income Tax and Social Security Point-in-Time Service Updates

Monday 7 April 2014 @ 9.01 a.m.

The Farm Household Support (Consequential and Transitional Provisions) Act 2014 (No. 13 of 2014) (FHSCT Act) is a companion Act to the Farm Household Support Act 2014 (FHS Act).

The FHS Act provides the mechanism to implement the Farm Household Allowance (FHA), an income support payment for farmers and their partners who are in financial hardship. The FHA replaces the Exceptional Circumstances Relief Payment (ECRP), which is provided for in the Farm Household Support Act 1992 (FHSA 1992). All other payments and schemes under the FHSA 1992 have ceased.

The purpose of the FHSCT Act is to:

  • repeal the FHSA 1992
  • make consequential amendments to other Acts that refer to the FHSA 1992, provisions of the FHSA 1992 or payments made under the FHSA 1992; as well as redundant references to a historical payment of "farmers hardship bonus" that was made under the Social Security Act 1991 (Cth)
  • make consequential amendments of a minor nature to other Acts to support the full and effective implementation of the FHA. These include amendments to make it easier for farmers receiving income support under non-legislated schemes to transition to the FHA when it becomes available following passage of the FHS Act and the FHSCT Act 
  • provide for contingent amendments of a number of Acts which are currently before Parliament, including by reference to the passage of other legislation; and general transitional provisions

Together with the FHS Act, the FHSCT Act is part of a broader national drought program reform agenda that replaces the Exceptional Circumstances arrangements and is designed to encourage farmers to plan for the future and better manage risks, including the risks associated with drought.

The amendments made by Act No 13 of 2014 will be updated in both the Point-in-Time Income Tax Service and the Social Security Point-in-Time Service by 14 April 2014. (NB: Subscription required).

If you are not already a subscriber to this or other Point-in-Time Services then please contact us to find out more or to take a free trial