Frequently Asked Questions:
Drought Apprenticeship Retention Program
Am I in an Exceptional Circumstances area?
Your trainee or apprentice must be employed in an area designated by PIRSA as Exceptional Circumstances. For the purpose of this particular program this is the majority of the state, not including the Adelaide Metropolitan area.
What can I use the payment for?
The money is to be used in whatever way you feel most appropriate to help to retain your trainee or apprentice.
Is the payment part of my taxable income?
Yes, the payment is part of your taxable income.
How is the payment made?
The $1500 payment is made in two payments of $750. The first payment is made in September 2007, and the second payment is made in March 2008.
Does the payment include GST?
The payments do include GST, meaning the total amount paid is $1650 (two payments of $825).
I have recently put on a new apprentice. Have I missed the dates to apply for the payment?
To be eligible, applicants need to have commenced their Training Contract before 1 September 2007, and complete after 31 August 2008.
How do I obtain further information?
Further information is available online at http://www.employment.sa.gov.au/employ/pages/default/darp/.
Enquiries can also be made to
Allison Williams
Project Officer
Drought Apprenticeship Retention Program
Traineeship and Apprenticeship Services
Department of Further Education, Employment, Science and Technology
P (08) 8226 3372
F (08) 8463 5617
Williams.Allison@saugov.sa.gov.au
Exceptional Circumstances
Interest Rate Subsidies for farm businesses
What assistance is available under Exceptional Circumstances (EC)?
Business support is available to eligible farm businesses located in declared EC areas through the Exceptional Circumstances Interest Rate Subsidy (ECIRS) program. The subsidy assists farm businesses that are considered to be viable in the long-term, but for the exceptional circumstances, are experiencing financial difficulties.
Income support is available to eligible farm families through the Exceptional Circumstances Relief Payment (ECRP). The payment is paid fortnightly at a rate equivalent to the Newstart Allowance. Further information is available by contacting Centrelink on 13 23 16.
Farmers located in interim EC areas can apply for interim income support through Centrelink on 13 23 16 but are unable to apply for interest rate subsidies.
How do I know if my farm property is located in an EC declared area?
Maps of EC declared areas within South Australia are available online at http://www.pir.sa.gov.au/pirsa/drought.
How do I apply for an interest rate subsidy?
ECIRS application forms and guidelines are online at http://www.pir.sa.gov.au/pirsa/drought. Application forms can also be obtained by contacting PIRSA Prudential and Rural Financial Services toll free on 1800 182 235 or via fax 8226 0229.
The application form includes a checklist, which outlines information that must be provided with your application. Completed applications are to be sent to PIRSA, Prudential and Rural Financial Services, GPO Box 1671, ADELAIDE SA 5001.
What assistance is available under ECIRS?
Interest rate subsidies are available for interest payable on commercial borrowings taken out by the farm business enterprise.
The interest rate subsidy in the first year of Exceptional Circumstances (EC) declaration is up to 50% of the interest payable and up to 80% in the subsequent years.
Is there a limit on the amount of ECIRS payable to farm businesses?
The maximum amount payable to a farm business is $100 000 per annum and a cumulative total of support of $500 000 over five years applies (where an area is extended beyond the initial period of two years).
To be eligible to apply for support over a cumulative total of $300 000, applicants must undertake a viability assessment to be eligible for continued assistance. An independent, suitably qualified advisor who has no interest in the farm or had no professional dealings with the farm in the past five years, must conduct this assessment.
When can I apply for ECIRS?
Applicants can apply for ECIRS during each declaration year (for a maximum period of 12 months in respect of each application or part thereof if the EC declaration is less than 12 months).
Eligibility must be assessed in each EC declaration year and approval in one year does not guarantee support in subsequent years. Applicants not receiving support in one year may be eligible in the following year/s.
Is there an assets test?
Support is not available where the net value of off-farm assets held by the farm business and its owners exceeds $473 0001. Applicants should also have disposed of all non-essential farm assets. The disposal of these assets must have been on commercial terms and the proceeds applied to the farm business.
Is there an off-farm income test?
Applicants need to demonstrate that they contribute at least 75% of their labour to the farm business and derive at least 50% of income from farming and have been a farmer for at least two years. Additionally, applicants must demonstrate that they are in need of government financial assistance.
In considering whether an applicant meets the above criteria, a range of factors are considered, including off-farm income and assets.
When is the ECIRS payment made?
Applicants who are approved in principle will be required to sign a funding agreement and provide a compliant tax invoice for the subsidy amount plus 10% GST before the ECIRS payment process can be completed.
Payment of ECIRS is calculated 12 months in advance from the date of approval (or part thereof if the declaration period is less than 12 months).
How do I obtain further information?
Further information is available online at http://www.pir.sa.gov.au/pirsa/drought. Enquiries can also be made to PIRSA on the toll free number 1800 182 235 or fax 8226 0229.
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