HOW TO GET YOUR HEAD AROUND THE NSW DROUGHT TRANSPORT SUBSIDIES

HOW TO GET YOUR HEAD AROUND THE NSW DROUGHT TRANSPORT SUBSIDIES

The continuing and compounding effects of the current drought mean NSW, has now had its driest start to a year since 1982. With the worsening drought conditions across much of Australia, state governments in most states have increased their efforts to provide relief to those that feed our nation. This guide aims to demystify the $190 million Drought Transport Subsidy program recently announced.

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THE SUBSIDY PACKAGE

QUICK FACTS ABOUT THE DROUGHT SUBSIDY

SHOW ME AN EXAMPLE

WHATS THE FINE PRINT?

HOW DO I APPLY?

OTHER DETAILS

THE SUBSIDY PACKAGE

The $190 million Drought Transport Subsidy program is part of a broader $500 million Emergency Drought Relief package which includes:

• $190 million for Drought Transport Subsidies;
• $110 million to cut the cost of farming by waiving fees and charges; and,
• $150 million to bolster the Farm Innovation Fund (FIF) infrastructure program.

QUICK FACTS ABOUT THE DROUGHT SUBSIDY

Q. How much is on offer?

A. The NSW Government will offer a transport subsidy of up to $20,000 per eligible farm business up to $30,000 over 18 months from 1 January 2018 to 30 June 2019.

Q. What period can I apply for?

A. The subsidy is back-dated so farmers can apply it for freight expenses incurred since 1 January 2018.

Q. How much of my costs does it cover?

A. It covers 50% of the full cost of freight up to a maximum of $5 per kilometre and 1,500 kilometres per journey.

Q. What kind of transport can I claim it for?

A. The subsidy can be applied for the cost of transporting fodder or water to a property, for stock to and from agistment, and stock to sale or slaughter.

Q. When do the application open?

A. The NSW Rural Assistance Authority (RAA) will begin processing applications for Drought Transport Subsidies from Monday, 6 August 2018.

SHOW ME AN EXAMPLE

A beef cattle farmer based in Gunnedah uses his truck and a 7,000L water cartage tank to cart water to his stock. The journey is a 50 kilometre round trip at a cost of $5 per kilometre. He makes the journey 10 times during the month meaning the farmer pays $2500. The farmer will receive a $1,250 Transport Subsidy from the Government if he has not reached the subsidy cap and meets other criteria.

WHATS THE FINE PRINT?

There are a number of conditions which you must satisfy in order to be eligible to apply for the subsidy. These are:

1. You are the owner and operator of a farm business in NSW;
2. You ar a sole trader, partnership, trust or private company that trades agricultural products;
3. The business is registered with the Australian Taxation Office as a primary producer, and have an Australian Business Number (ABN);
4. The owners and operators of the business earn more than 50% of their gross income from the primary production enterprise under normal seasonal circumstances;
5. The business is being negatively impacted by drought conditions;
6. The owners and operators of the business do not have gross off-farm assets exceeding $1,000,000 (excluding funds in a registered superannuation fund).

If you meet these criteria, you are eligible to apply for the subsidy.

HOW DO I APPLY?

Applications can be made via on online form on the RAA (Rural Assistance Authority) website or via downloading a form from this site and emailing or posting it back to the RAA.

CLICK HERE to access the webpage where you can complete the online form or download a copy to fill out on paper.

OTHER DETAILS

Detailed Guidelines on Applying

DroughtHub Emergency Drought Relief Package