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Exceptional Circumstances Exit Package

The Exceptional Circumstances (EC) Exit Package is available to eligible farmers if you decide to leave the land.


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Exceptional Circumstances Exit Package

The EC Exit Package is available to farmers if you are in severe financial difficulty and you have decided to leave the land.

The EC package consists of the following components:

  • EC Exit Grant of up to $150,000 and an increase in the assets test limit to access this grant to $575,000
  • EC Advice and Re-training Grant of $10,000
  • EC Relocation Grant of $10,000

Note: As a farmer, you must be considered eligible for the EC Exit Grant before you can apply for the EC Advice and Re-training Grant and the EC Relocation Grant.

Exceptional Circumstances Exit Grant

The EC Exit Grant offers a one-off, taxable payment of up to $150,000 for farmers whose farm enterprise is or was located within an EC declared area1 (including prima facie and interim declared areas) on or after 25 September 2007 who sell their farm enterprise and lodge an EC Exit Grant application between 25 September 2007 and 30 June 2010.

A maximum amount of $150,000 is available for the EC Exit Grant. This applies if your net assets are less than $350,000. For every $3 in assets above $350,000, the EC Exit Grant reduces by $2. This means that you can receive a reduced grant if you have net assets up to $575,000.

Note: The EC Exit Grant is taxable and you should seek the advice of a financial advisor regarding possible taxation liabilities.

As the grant is taxable, you will need to update your income estimates for Family Tax Benefit.

1 EC declared area includes areas that were EC declared on 25 September 2007 but may have since lapsed.

Exceptional Circumstances Advice and Re-training Grant

The EC Advice and Re-training Grant allows farmers and their partners who have successfully applied for the EC Exit Grant to access professional advice and re-training up to $10,000. This will assist you in preparing for a successful transition away from farming.

To be eligible for the EC Advice and Re-training Grant, you must:

  • have claimed and be eligible for the EC Exit Grant, and
  • discuss exit advice, training needs and options with us.

Exceptional Circumstances Relocation Grant

The EC Relocation Grant of up to $10,000 (GST inclusive) is available to farmers who have successfully applied for the EC Exit Grant and are relocating to pursue continued employment prospects.

This grant aims to assist farm families in EC declared areas to access job seeking and relocation assistance. It assists farmers accessing the EC Exit Grant to move from farming to other careers.

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Eligibility

To be eligible for the EC Exit Grant you must:

  • be an Australian resident, and
  • be a farmer, whose farm enterprise is or was located in an EC declared area (includes prima facie and interim declared areas) on or after 25 September 2007, and have owned the farm for at least 5 years, and
  • have sold your farm on or after 25 September 2007.

Note: If you are intending to sell, or considering selling your farm, you can use the Exceptional Circumstances Exit Grant claim form to test your potential eligibility for this payment.

You also need to satisfy the following criteria:

  • contribute a significant part of your labour and capital to the farm enterprise
  • derive a significant part of your income from the farm enterprise
  • have a right or interest in the farm enterprise for at least 5 years immediately prior to exiting the farm industry, or have taken ownership and control of the farm enterprise that has been in the family for at least 5 years, due to the death, illness or retirement of another family member
  • have been effectively in control of the farm enterprise immediately before its sale
  • be able to meet the required asset test
  • you or your partner have not previously received a successful exit grant, re-establishment grant or restructuring grant under previous Australian Government packages.

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Claiming

You will need to complete a claim form and lodge it with us by 30 June 2010.

For claim forms, you can:

Claim outcome

We will send you a letter advising if your claim is successful, and details of your payments.

If you disagree with a decision we make

You always have the right to appeal any decision made by Centrelink.

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