Business income reconciliation

To calculate Farm Household Allowance, we compare your estimated and actual business income. We reconcile your business income at the end of each financial year.

Reconciliation for 2016-17

If you got Farm Household Allowance in 2016–17, you have until 30 June 2018 to send us your income tax returns and financial statements.

Reconciliation for 2015-16

If you got Farm Household Allowance in 2015–16, you should have sent us your income tax returns and financial statements by 30 June 2017. If you haven’t done this, we will ask you to pay back the amount of Farm Household Allowance you received.

If the Australian Taxation Office has given you an exemption or extension you will have longer to send us your tax and financial documents. You need to send us proof of your exemption or extension. You can upload documents via your myGov account, or take them to a service centre. Contact your Farm Household Case Officer or the call the Farmer Assistance Hotline for more information.

If you have been overpaid we will ask you to pay the money back. This is because we work out how much Farm Household Allowance to pay you based on your farm’s business income.

If you’ve been underpaid you’ll get a top up payment.

Waiver of reconciliation debts for 2014-15

You don’t have to repay business income reconciliation debt from being overpaid in 2014–15. The government has waived those debts. However, you do have to repay any Farm Household Allowance business income reconciliation debts after this in full.

This waiver doesn’t cover business income reconciliation debts where:

  • there is evidence of fraud, or
  • you haven’t met your mutual obligations

Despite the waiver, you must still provide documents to follow the reconciliation process.

The reconciliation process

There are 3 steps in the reconciliation process:

Step 1: Estimate

We ask you to estimate your farm’s business income:

  • for the current financial year when you apply for Farm Household Allowance, and
  • every financial year after that

We base the amount of farm household allowance we pay you on your estimated farm business income for the financial year.

Changes to your income and circumstances may affect the amount of Farm Household Allowance you get.

You can update your income estimate any time throughout the year, if your farm makes more money than you expected or your circumstances change. You must tell us about changes to your income within 14 days so that we don’t overpay you.

Step 2: Submit

After you submit your tax return to the Australian Taxation Office, you must send us your:

If you no longer get Farm Household Allowance, you still need to send us your documents. Otherwise, the amount we’ve already paid you that financial year will count as a debt.

Let us know if you get an extension on your tax return.

How to submit your documents

You can submit your documents:

Department of Human Services
Rural and Climate Change Services
Reply Paid 7816

Step 3: Reconcile

We compare your tax returns and financial statements with the business income estimate you gave us. This allows us to work out the right amount of Farm Household Allowance for that year.

We’ll tell you if:

  • you’ll get a top up payment
  • you have been overpaid and need to repay an amount, or
  • there’s no change

Repayment of debts

If you need to repay a debt, we’ll let you know how much.

You can still get Farm Household Allowance while you repay the debt.

You can ask for a review of a decision.

Page last updated: 4 December 2018

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