Exceptional Circumstances Relief Payment for small businesses
Exceptional Circumstances (EC) assistance is provided to assist eligible drought-affected farmers and people in small business who provide services to farm businesses and farm communities in Exceptional Circumstances (EC) declared areas.
It provides targeted support in the form of Exceptional Circumstances Relief Payment (ECRP) and Exceptional Circumstances (EC) interest rate subsidies.
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Eligibility
You may be eligible for Exceptional Circumstances Relief Payment (ECRP) for small businesses if you:
- own a small business, and
- have experienced a significant downturn as a result of the drought, and
- contribute a significant part of your labour and capital to the business, and
- derive a significant part of your income from the business, and
- employ up to 100 full-time equivalent staff, and
- are an Australian resident or have permission to stay permanently in Australia, and
- have a current Australian Business Number (ABN) and carry out commercial activities.
In addition to qualify, your small business must either:
- source a minimum 70% of your income from the provision of goods and services for farming activities in Exceptional Circumstances (EC) declared areas, or
- from 25 September 2007, demonstrate that your 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 the Department of Agriculture, Fisheries and Forestry then your small business is not eligible for assistance under the 2nd criterion. Your small business may be eligible if you can prove that you derive over 70% of your income from the provision of goods and services for farming activities in EC declared areas.
Payment rates
Exceptional Circumstances Relief Payment (ECRP) rates are usually the same as for Newstart Allowance. If you are partnered there is an additional amount that is the same as Partner Allowance.
Note: If you live in an area likely to become an EC declared area, you may be eligible for Interim Income Support for Small Business payments for 6 months.
Pharmaceutical Allowance is not payable if you receive ECRP.
Health Care Card
If you qualify for ECRP, you automatically get a Health Care Card.
Taxation
ECRP is taxable.
Payment adjustment and reviews
ECRP is usually adjusted on 20 March and 20 September each year in line with the Consumer Price Index—that is, in line with increases in the costs of living.
From time to time, your ECRP is reviewed.
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Income and assets
The amount of Exceptional Circumstances Relief Payment (ECRP) you get paid depends on your income and assets.
Both tests are the same as for Newstart Allowance although exceptions apply, for example:
- Prior to 1 July 2011, up to $20,000 of your and your partner's combined income earned from any non-business related wages or salary can be disregarded annually using a pro-rated formula
- you do not have to include essential small business assets (like business plant and machinery) in the assets test.
Claiming
You will need to complete a claim for Drought Assistance - Small Business Income Support form and return it to us as soon as possible.
For claim forms, you can:
- print out a claim for Drought Assistance - Small Business Income Support form
- phone us on 13 2316
- visit your nearest Centrelink Customer Service Centre or Centrelink Agent
Documentation
Once you submit your claim you will need to provide proof of identity.
We will tell you if there are other documents and forms you need to provide. You will need to submit these within 14 days. The sooner we receive your documents, the sooner we can process your claim.
Claim outcome
We will send you a letter advising if your claim is successful. If you are eligible for ECRP, the letter will also tell you when you payment starts and how much you will get paid.
If you disagree with a decision we make
You always have the right to appeal any decision made by Centrelink.
- Reviews and appeals process
- Your rights section
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Find out more
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Other websites
Publications
Contact us
- phone the Drought Assistance line on 13 2316
- find your nearest Centrelink Customer Service Centre or Agent
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