$400 Million Tied Up In Tax Relief For Farmers

icyfroth — Thu, 07 May 2015 23:13:33 GMT

The National Farmers' Federation (NFF) says more than $400 million in drought assistance remains untouched because it is too difficult for indebted farmers to access.

Over the past three years, $700 million in federal funding has been earmarked for low-interest loans for drought-stricken farmers.

However, just $270 million in lending has been approved, leaving almost two-thirds of the money sitting in government coffers.

NFF president Brent Finlay said the farmers most desperately in need were ineligible for the loans.

"Some of these businesses, because they have been so smashed, are deemed to be non-viable so they're deemed to not be able to service the loan or pay it back in future," he said.

"We are in a crisis situation.

"We have had three seasons and some going into the fourth season without rain, without any income.

"These communities are breaking down right now."

Mr Finlay said it was simply not possible for many farmers to take on a concessional loan which must be paid back in five years and said the Government needed to extend all loan periods to 15 years.

He said there needed to be greater cooperation between Government lending authorities and commercial banks to streamline the lending process and a relaxation in loan eligibility criteria.

"Four weeks ago I wrote to the Prime Minister urging him to become involved in this issue, because it is desperate times," Mr Finlay said.

"We know the northern wet season has failed again and in many areas, they won't get another wet until after Christmas.

"Potentially they won't get any income until the end of next year."

More infrastructure funding needed

He said the extra federal funding for water infrastructure, included as part of the Government's drought package announced in February last year, had worked well.

"We want to see more money for water infrastructure because that's about drought preparedness," he said.

"It's about helping through this drought and also the next drought... and it can help farmers stay on their feet."

The Government is expected to announce further drought-relief measures soon aimed at keeping affected communities alive through infrastructure and maintenance programs.

"In these remote communities the actual council, the local government authority, is the major employer and a lot of businesses rely on that and a lot of people in that community rely on that for income," Mr Finlay said.

"So to actually put money into these communities around infrastructure projects, we strongly support that."

http://www.abc.net.au/news/2015-05-07/drought-relief-red-tape-national-farmers-federation/6451552

I bet if it was aid going overseas the money would be freed up quick smart.

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$400 Million Tied Up In Tax Relief For Farmers