Farm Household Allowance business income reconciliation

At the end of each financial year we reconcile your business income.

To ensure we pay you the correct amount of Farm Household Allowance, we compare your estimated business income with your actual business income each financial year.

Waiver of reconciliation debts for 2014-15

The government has agreed to a one-off waiver of Farm Household Allowance business income reconciliation debts incurred in the 2014-15 financial year. Any Farm Household Allowance debts incurred in subsequent years will need to be repaid in full. This waiver does not cover debts where there is evidence of fraudulent activity or where you have not met your mutual obligations.

Despite the waiver, it is still a legal requirement under the Social Security (Administration) Act 1999 that you provide documents to comply with the reconciliation process.

Why reconciliations are done

Your farm’s income can be difficult to forecast. This is why we need to compare and reconcile your payment with your actual business income to make sure you are receiving the correct amount of Farm Household Allowance.

After you submit your tax return to the Australian Taxation Office, you must also submit your tax return and financial statements to us. We will compare your actual business income with the business income estimate you provided us.

We will then let you know the result of the reconciliation. You may receive a top up payment if you have been underpaid. You may need to repay an amount if you have been overpaid - which may be waived for 2014-15. Alternatively, there may be no change.

The reconciliation process

There are 3 steps in the reconciliation process:

Step 1: Estimate your farm’s business income

When you apply for Farm Household Allowance, and each financial year after that, we will ask you to estimate your business income for the current financial year. You can update your estimate of farm business income at any time during the year. Changes to your estimate may affect the amount of Farm Household Allowance you receive. You need to notify us of any change of circumstances within 14 days.

Step 2: Submit your income tax return and financial statements

After submitting your tax return to the Australian Taxation Office, send us:

You need to do this even if you are no longer receiving Farm Household Allowance. Otherwise, the amount you received that financial year will be raised as a debt and your ongoing fortnightly payments may stop. Let us know if you have received an extension to lodge your tax return.

How to submit your documents

You can return this information to us:

  • online
  • by post to:
    Department of Human Services
    Rural and Climate Change Services
    Reply Paid 7816
    CANBERRA BC ACT 2610

    No postage stamp is required if posted in Australia.

Step 3: We will reconcile your business income against your estimated business income

Your tax returns and financial statements will be compared to your estimated business income for the financial year in order to calculate the correct amount of Farm Household Allowance. We will let you know if you will receive a top up payment, need to repay an amount, or if there has been no change.

Repayments

We will let you know if you need to repay a debt and how much you need to pay.

You can continue to receive Farm Household Allowance while repaying a debt.

You can ask for a review of a decision about your payments if you do not agree.

Page last updated: 14 November 2016

This information was printed Wednesday 7 December 2016 from humanservices.gov.au/customer/enablers/farm-household-allowance-business-income-reconciliation It may not include all of the relevant information on this topic. Please consider any relevant site notices at humanservices.gov.au/siteinformation when using this material.