I am pleased to announce that the Australian Government will assist small business operators by extending eligibility for Exceptional Circumstances assistance, previously available only to farmers. Small business operators able to demonstrate that 70 per cent or more of their total income comes from farm business in Exceptional Circumstances declared areas will now be able to access income support and interest rate subsidies.
This Small Business Drought Assistance package will cost approximately $210 million over two years and increases assistance from the Commonwealth Government to farmers and communities during this prolonged drought to more than $2.3 billion.
The extension of the eligibility criteria for Exceptional Circumstances assistance will potentially allow thousands of small businesses to access assistance until 2008 and will give small businesses greater security and peace of mind.
Over a week ago, I visited drought-affected communities including Goulburn, Parkes, Finley and Forbes in New South Wales. It was clear that the severity and prolonged nature of the drought was having a significant effect on those small businesses that provide services to farmers. These businesses include the contract harvesters, fencing contractors, seed, feed and fertiliser suppliers, livestock transporters, shearing contractors and suppliers of farm machinery and equipment.
Exceptional Circumstances assistance means that eligible small business operators and farmers can receive relief payments, at the rate of the Newstart Allowance, to help them meet daily living expenses. Eligible small business operators can also access interest rate subsidies of 50 per cent of interest costs in the first year and 80 per cent of interest costs in the second and subsequent years of an Exceptional Circumstances declaration, to a maximum of $100,000 per year or $500,000 over five years.
The Commonwealth Government has spent more than $1.2 billion in direct Exceptional Circumstances assistance since 2001. The Small Business Drought Assistance builds on the Government's announcements since 16 October 2006 to extend more than $900 million in Exceptional Circumstances assistance to farmers in drought declared areas. More than 50 per cent of Australia's agricultural land is now covered by Exceptional Circumstances declarations.
Arrangements for the Small Business Drought Assistance will be finalised by Centrelink this week. Small business operators should contact Centrelink on the National Drought Helpline 13 23 16 for further information.