Business income reconciliation

We compare your estimated and actual farm business income to check you got the right amount of Farm Household Allowance.

We use your farm business income estimate to work out if you’re eligible for Farm Household Allowance (FHA).

Each year, we’ll ask you to provide your income tax returns and other financial documents for the previous financial year. We may use these documents to compare your farm business income with the estimate you gave us. This allows us to check we paid you the right amount of FHA. We call this business income reconciliation.

What's the reconciliation process

There are 3 steps if we reconcile your farm business income.

Step 1: Estimate

We ask you to estimate your farm business income in these situations:

  • when you apply for FHA
  • each financial year while you’re getting FHA
  • when your income changes.

You can update your income estimate any time throughout the year. You should do this if your farm makes more or less money than you expected or your circumstances change. You must tell us about changes to your income within 14 days. This is to so we don’t pay you FHA when you’re not entitled to it.

Step 2: Submit

After you lodge your tax return with the Australian Taxation Office, you must send us your:

  • personal tax return
  • partner's personal tax return, if you have a partner
  • business balance sheet for 30 June
  • business tax return
  • business profit and loss statement
  • business depreciation schedule.

If you no longer get FHA, you still need to send us your documents. Otherwise, the amount we’ve already paid you that financial year may count as a debt.

Let us know if you get an extension on your tax return.

Submitting your documents

You can submit your documents:

Services Australia
Rural and Climate Change Services
Reply Paid 7816

Step 3: Reconcile

We compare your tax returns and financial documents with the business income estimate you gave us. This allows us to work out if we paid you the right amount of FHA for that year.

We’ll tell you if:

  • we didn’t pay you enough and you’ll get a top up payment
  • we’ve paid you too much and you need to repay an amount
  • there’s no change.

We’ve paused a range of debt raising and recovery activities during the coronavirus pandemic.

When to provide your financial documents

If you got FHA in the 2018-19 financial year

You should have sent us your documents by 30 June 2020. If you haven’t, you need to do it now.

If we don’t get them, we may cancel your payment. We may also ask you to pay back the amount of FHA you got.

If you got FHA in the 2019-20 financial year

We’ll ask you to send us your documents by 30 June 2021. We’ll write to you in June 2021 to ask you to do this.

If you think we didn’t pay you enough FHA, you can ask us to reconcile your income now. Call us on the Farmer Assistance Hotline.

If you got FHA after 1 July 2020

During the 2020-21 financial year, we’ll replace the current process. You still need to estimate your income each financial year. You should also update your estimate within 14 days if your circumstances change.

The new approach will help you keep your income information up to date so you’re paid the right amount. We’ll make it easy for you to know what to tell us, and how. Every time you speak with us, we’ll check with you if your income or other circumstances have changed. We may still reconcile your income if there’s a high risk that we’ve overpaid you.

Exemptions and extensions

If the Australian Taxation Office has given you an exemption or extension, you might not need to provide these documents. But, you need to send us proof of your exemption or extension. You can upload your documents online, or take them to a service centre. Contact your Farm Household Case Officer or call the Farmer Assistance Hotline for more information.

When you need to repay a debt

If you need to repay a debt, we’ll let you know how much.

You can still get FHA while you repay the debt.

If you don’t agree with a decision we make, you can ask for a review of a decision.

Page last updated: 30 September 2020