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Small Block Irrigators Exit Grant Package

On 20 September 2008, the Prime Minister and the Minister for Climate Change and Water jointly announced the Australian Government's $57.1 million Small Block Irrigators Exit Grant Package designed to assist small block irrigators who draw 100% of their water from the Murray-Darling Basin. The Small Block Irrigators Exit Grant Package was available until 30 June 2009, and formed a part of the Australian Government's Water for the Future plan.

On 13 February 2009, the Australian Government amended the eligibility criteria for the Small Block Irrigators Exit Grant Package to enable small block irrigators on farms up to 40 hectares in the Murray-Darling Basin to apply. Small block irrigators affected by drought and climate change could get help to leave irrigation through the Murray-Darling Basin Small Block Irrigators Exit Grant while remaining on their farms.

Note: This scheme closed to new applicants on 1 July 2009.

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Assistance available

The Exit Grant, of up to $150,000, is a one-off, taxable and time limited payment to farmers who wish to leave irrigation. In addition, 2 complementary grants are included in the package:

  • up to $20,000 for removal of permanent plantings and other above ground production-related infrastructure, and
  • up to $10,000 for advice and training, including skills development, direction setting plans, succession planning and business advice.

The net asset limit is $350,000 for access to a full grant of $150,000. However, net assets exclude the value of up to 40 hectares of farm land and your principal home located on land used as part of the irrigation farming enterprise.

If the value of your other total net assets is above $350,000, you may still be eligible for a reduced grant. For every $3 in assets above the threshold, the exit grant reduces by $2. This means that you cannot receive a grant of any amount if your net assets (excluding your house and land) are more than $575,000.

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Eligibility

You may be eligible for the Small Block Irrigators Exit Grant if:

  • you owned no more than 15 hectares of irrigated farm land on 20 September 2008, or you owned more than 15 hectares of farm land but not more than 40 hectares on 13 February 2009, and
  • your only course of irrigation entitlement is from the Murray-Darling Basin, and
  • you sell to the Commonwealth through the 'Restoring the Balance in the Murray-Darling Basin program' all your tradeable permanent irrigation entitlements which add up to at least 10 megalitres, and
  • you are willing to remove all permanent plantings and above ground production related infrastructure, and
  • you are willing to give an undertaking, that neither you nor your farm land will be involved in irrigated farming for at least 5 years.

The Australian Government has requested State Governments agree to a number of specified water reforms that will improve the functioning of the water market. This agreement is a pre-condition of delivery of this package to irrigators in each State.

Access to the package in each State is conditional on that State agreeing to the specified water reforms but is not conditional on all the States agreeing to the reforms.

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How to claim

Irrigators who have had a Small Block Irrigators Exit Grant Pre-assessment claim approved need to complete a Small Block Irrigators Exit Grant Post-assessment Claim form and have met all the requirements for the Small Block Irrigators Exit Grant by 31 March 2010.

Members of the irrigation farming enterprise will also be required to complete and lodge a Small Block Irrigation Exit Grant Post-assessment for additional members of the irrigation enterprise claim form by 31 March 2010.

Note: You need to have your post-assessment claim approved by 31 March 2010 to access all the components of the Small Block Irrigators Exit Grant package.

You can get a claim form by phoning the Murray-Darling Basin Assistance and Referral Line on FreeCALL™1800 050 015 or by visiting your nearest Centrelink Customer Service Centre or Agent .

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Finding out more

Online publications

Contact us

  • phone the Drought Assistance line on 13 2316
  • phone the Murray-Darling Basin Assistance line on FreeCALL™1800 050 015
  • phone the free TTY service on FreeCALL™1800 810 586 if you have a hearing or speech impairment
  • visit your nearest Centrelink Customer Service Centre or Agent

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