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Exceptional Circumstances Relief Payment for Small Businesses

What is Exceptional Circumstances Relief Payment for Small Businesses?

Exceptional Circumstances (EC) assistance is provided to assist eligible drought-affected farmers and people in small businesses who provide services to farm businesses and farm communities in exceptional circumstances declared areas.

It provides targeted support in the form of the Exceptional Circumstances Relief Payment and Exceptional Circumstances Interest Rate Subsidies. For more information about the EC Interest Rate Subsidies, go to Department of Agriculture, Fisheries and Forestry website.

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Who is eligible for Exceptional Circumstances Relief Payment for Small Businesses?

To be eligible for EC small business assistance, the owners of a small business must:

  • have experienced a significant downturn as a result of the drought
  • contribute a significant part of their labour and capital to the business and derive a significant part of their income from the business
  • employ up to 100 full time equivalent staff
  • be an Australian resident or have permission to stay permanently in Australia
  • have a current Australian Business Number and carry out commercial activities.

In addition, to qualify, the small business must either:

  • source a minimum 70 per cent of their income from the provision of goods and services for farming activities in EC declared areas, or
  • from 25 September 2007, demonstrate that the business is located in a town that is substantially reliant on farm income, has a population of up to 10 000 and is in an EC (Prima Facie or Interim) declared area.

Note: If your small business is not located in an eligible town, as determined by Department of Agriculture, Fisheries and Forestry, then your small business is not eligible for assistance under the second criterion. Your small business may be eligible if you can prove that you derive over 70 per cent of your income from the provision of goods and services for farming activities in EC declared areas.

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Is Exceptional Circumstances Relief Payment for Small Businesses income and asset tested?

Until 30 September 2008, the non-business asset limit for EC Interest Rate Subsidy is a net value of $750 000.

The non-business assets test arrangements for Exceptional Circumstances Relief Payment have not changed and is linked to the Newstart asset test limit (now $236 500 net value, as at 1 July 2007 for a partnered homeowner).

The amount of non-business salaries and wages exempted from the income test for the Exceptional Circumstances Relief Payment for an applicant and their partner has recently been increased from $10 000 to $20 000 per financial year.

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How do I apply for Exceptional Circumstances Relief Payment for Small Businesses?

You will need to complete the Claim for Drought Assistance - Small Business Income Support Form.

You can also phone the Drought Assistance Line on 13 2316 , or visit your nearest Centrelink Customer Service Centre.

Once completed, the form should be sent to or lodged at your nearest Centrelink Customer Service Centre.

Please Note: The Exceptional Circumstances Relief Payment for Small Business Factsheet will soon be available for download from the publications section of our website. While a new Exceptional Circumstances Relief Payment for Small Business Factsheet is being developed please refer to the Department of Agriculture, Fisheries and Forestry website.

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