{"id":"F2024L01212","name":"Farm Household Support Minister's Rules 2024","slug":"farm-household-support-minister-s-rules-2024","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":105383,"registerId":"commonwealth-F2024L01212-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"## Part 1—Preliminary","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Name","content":"#### 1 Name\n\n This instrument is the Farm Household Support Minister’s Rules 2024.","sortOrder":1},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n (1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n```html\n

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1. The whole of this instrument

The day after this instrument is registered.

27 September 2024

\n```\n\n> Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.\n\n (2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.","sortOrder":2},{"sectionNumber":"3","sectionType":"section","heading":"Authority","content":"#### 3 Authority\n\n This instrument is made under the Farm Household Support Act 2014.","sortOrder":3},{"sectionNumber":"4","sectionType":"section","heading":"Schedules","content":"#### 4 Schedules\n\n Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.","sortOrder":4},{"sectionNumber":"5","sectionType":"section","heading":"Definitions","content":"#### 5 Definitions\n\n> Note: A number of expressions used in this instrument are defined in the Act, including the following:\n\n (a) farm asset;\n (b) farm enterprise;\n (c) Social Security Act.\n (1) In this instrument:\n\n> Act means the Farm Household Support Act 2014.\n\n> overall operating loss: see subsection 7(1).\n\n> related business, of a farm enterprise, has the meaning given by subsection (2).\n\n (2) A business is a related business of a farm enterprise if:\n (a) the business is carried on principally for the purpose of providing goods or services within any of the agricultural, horticultural, pastoral, apicultural or aquacultural industries; and\n (b) the business is carried on, or effectively controlled, by a person who is:\n (i) a farmer in relation to the farm enterprise; or\n (ii) a partner of such a farmer; and\n (c) any of the following applies:\n (i) the business provides goods or services to the farm enterprise;\n (ii) the farm enterprise provides goods or services to the business;\n (iii) the business uses farm assets of the farm enterprise in the conduct of the business;\n (iv) the business acquires products of the farm enterprise for sale, use in manufacture, distribution or processing;\n (v) the farm enterprise acquires products of the business for sale, use in manufacture, distribution or processing.","sortOrder":5},{"sectionNumber":"Part 2","sectionType":"part","heading":"Rate of farm household allowance—allowable deductions from ordinary income","content":"## Part 2—Rate of farm household allowance—allowable deductions from ordinary income","sortOrder":6},{"sectionNumber":"6","sectionType":"section","heading":"Purpose of this Part","content":"#### 6 Purpose of this Part\n\n For the purposes of section 67 of the Act, this Part sets out how a person’s ordinary income for a tax year is to be reduced for the purposes of working out the rate of farm household allowance for the person.","sortOrder":7},{"sectionNumber":"7","sectionType":"section","heading":"Overall operating loss to be used to reduce ordinary income","content":"#### 7 Overall operating loss to be used to reduce ordinary income\n\n (1) Subject to the limits set out in section 8, a person’s ordinary income for a tax year is to be reduced by the amount of the overall loss (the overall operating loss) of the farm enterprise in relation to which the person claimed farm household allowance and the related businesses of the farm enterprise.\n (2) The amount of the overall operating loss of the farm enterprise and related businesses of the farm enterprise is the amount worked out using the following method statement.\n\nMethod statement\n\nStep 1. Identify for the person the farm enterprise in relation to which the person claimed farm household allowance and each related business of the farm enterprise.\n\nStep 2. Work out for the tax year the revenue of the farm enterprise and each related business of the farm enterprise.\n\nFor the purposes of this step:\n\n(a) if the farm enterprise or related business is carried on by more than one entity—assume that only one entity is carrying on the farm enterprise or related business; and\n\n(b) if the farm enterprise or related business is carried on by a company or trust—the revenue of the farm enterprise or related business is the company’s or trust’s gross ordinary income from the farm enterprise or related business as worked out under section 1208 of the Social Security Act without any reductions; and\n\n(c) if the farm enterprise or related business is carried on by an entity other than a trust or company—the revenue of the farm enterprise or related business is the entity’s gross ordinary income from the farm enterprise or related business worked out under Part 3.10 of that Act without any reductions; and\n\n(d) if the farm enterprise or related business is carried on by a partnership—treat the partnership as a person for the purpose of applying paragraph (c).\n\nStep 3. Sum the amounts worked out under step 2.\n\nStep 4. Work out for the tax year the outgoings for the farm enterprise and each related business of the farm enterprise.\n\nFor the purposes of this step:\n\n(a) if the farm enterprise or related business is carried on by more than one entity—assume that only one entity is carrying on the farm enterprise or related business; and\n\n(b) if the farm enterprise or related business is carried on by a company or trust—the outgoings of the farm enterprise or related business are the reductions that can be made under section 1208A or 1208B of the Social Security Act from the company’s or trust’s gross ordinary income from the farm enterprise or related business; and\n\n(c) if the farm enterprise or related business is carried on by an entity other than a trust or company—the outgoings of the farm enterprise or related business are the reductions that can be made under Division 1A of Part 3.10 of the Social Security Act from the entity’s gross ordinary income from the farm enterprise or related business; and\n\n(d) assume that the company’s, trust’s or entity’s gross ordinary income from the farm enterprise or related business for the tax year exceeded the reductions; and\n\n(e) if the farm enterprise or related business is carried on by a partnership—treat the partnership as a person for the purpose of applying paragraphs (c) and (d).\n\nStep 5. Sum the amounts worked out under step 4.\n\nStep 6. Subtract the amount worked out under step 5 from the amount worked out under step 3.\n\nStep 7. If the amount worked out at step 6 is zero or more, there is no overall operating loss for the tax year.\n\nStep 8. If the amount worked out at step 6 is a negative amount, the amount (ignoring that the amount is a negative number) is the overall operating loss for the tax year.","sortOrder":8},{"sectionNumber":"8","sectionType":"section","heading":"Limits on using the overall operating loss to reduce ordinary income","content":"#### 8 Limits on using the overall operating loss to reduce ordinary income\n\n (1) The amount of the overall operating loss that can be used to reduce the ordinary income of a person, and the person’s partner (if any), for a tax year must not exceed the least of the following:\n (a) the overall operating loss;\n (b) the person’s share of the overall operating loss, if an adjustment under subsection (4) was made in relation to the overall operating loss;\n (c) $100,000.\n (2) Neither a person’s, nor the person’s partner’s, ordinary income for a tax year may be reduced below zero.\n (3) An amount of the overall operating loss that is used by a person, and the person’s partner (if any), for a tax year must not be used by another person to reduce that person’s ordinary income for the tax year.\n (4) If:\n (a) a person (the first person) and another person (other than the partner of the first person) would be entitled to use the overall operating loss to reduce their ordinary income for a tax year because each of those persons qualifies for farm household allowance in relation to the same farm enterprise; and\n (b) those persons have notified the Secretary that they wish to use the overall operating loss, or part of that loss, to reduce their ordinary income for the tax year;\n the overall operating loss must be adjusted, as agreed between those persons, to reflect each of those persons’ share of the overall operating loss.\n (5) If the overall operating loss has been adjusted under subsection (4), each person may use only their share of the overall operating loss.","sortOrder":9},{"sectionNumber":"Part 3","sectionType":"part","heading":"Activity supplement","content":"## Part 3—Activity supplement","sortOrder":10},{"sectionNumber":"9","sectionType":"section","heading":"Maximum amount of activity supplement","content":"#### 9 Maximum amount of activity supplement\n\n For the purposes of paragraph 82(1)(a) of the Act, the maximum amount of activity supplement is $10,000.","sortOrder":11},{"sectionNumber":"Part 4","sectionType":"part","heading":"Farm financial assessment supplement","content":"## Part 4—Farm financial assessment supplement","sortOrder":12},{"sectionNumber":"10","sectionType":"section","heading":"Maximum amount of farm financial assessment supplement","content":"#### 10 Maximum amount of farm financial assessment supplement\n\n For the purposes of paragraph 89(a) of the Act, the maximum amount of farm financial assessment supplement is $1,500.","sortOrder":13},{"sectionNumber":"Part 5","sectionType":"part","heading":"Application, saving and transitional provisions","content":"## Part 5—Application, saving and transitional provisions","sortOrder":14},{"sectionNumber":"11","sectionType":"section","heading":"Application provision relating to the commencement of this instrument","content":"#### 11 Application provision relating to the commencement of this instrument\n\n Part 2 of this instrument applies for the purpose of working out the rate of farm household allowance for a person on or after the commencement of this section.","sortOrder":15}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"This instrument appears to operate within its original intended scope. It provides detailed rules for income testing and supplementary payments as authorised by the Farm Household Support Act 2014. The content is procedural and technical rather than expanding the policy footprint of the scheme."},"complexity_factors":["Extensive cross-referencing to the Social Security Act 1991 (specifically sections 1208, 1208A, 1208B and Part 3.10) for income calculation methods","Nested conditional logic in the 'related business' definition (subsection 5(2)) with five alternative connection tests","Multi-step method statement in section 7 with 8 steps, including hypothetical assumptions about entity structures","Complex apportionment rules in section 8 for shared losses between multiple claimants and partners","Interaction between company/trust/partnership/individual structures requiring different calculation methods","Defined terms rely heavily on parent Act (Farm Household Support Act 2014) including 'farm asset', 'farm enterprise', 'farmer'"],"plain_english_summary":"This instrument sets how the Australian Government calculates and pays the Farm Household Allowance for farmers, their partners, and related farm businesses, allowing genuine farm operating losses to reduce assessable income so struggling farm households can qualify for or receive higher payments.\n\nIt caps deductible losses at $100,000 and fixes two supplements: a $10,000 Activity Supplement for training or adjustment and a $1,500 Farm Financial Assessment Supplement for professional advice, helping farmers through volatile seasons."},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"The instrument provides calculation rules, caps and procedural detail under the Farm Household Support Act 2014 for applying overall operating losses and fixing two supplement maxima. It does not, on its face, expand or narrow the classes of persons eligible under the Act or alter statutory eligibility criteria; it prescribes how amounts are worked out and allocated (see s7, s8, s9, s10) and applies on commencement (s11)."},"complexity_factors":["Multi-step, prescriptive calculation method for overall operating loss with eight steps and multiple assumptions (Method statement, s7 Steps 1–8).","Cross-references to the Social Security Act for determining gross ordinary income and allowable reductions for companies, trusts and other entities (s7 Step 2(b)–(c); Step 4(b)–(c)).","Different legal treatment depending on entity type (company, trust, partnership, other entity) creating divergent evidentiary and accounting rules (s7 Steps 2–4).","Detailed definition of \"related business\" with several alternative connection tests (s5(2)(a)–(c) and (c)(i)–(v)), increasing factual inquiries for eligibility.","Numeric and entitlement limits including a $100,000 cap, prohibition on reducing ordinary income below zero, and non‑duplication between persons (s8(1)–(3)).","Allocation and coordination requirements where multiple persons qualify to use the same overall operating loss, requiring notification and agreement to adjust shares (s8(4)–(5)).","Operational timing and application clauses that set commencement and application to calculations from the instrument’s start date (s2; s11)."],"plain_english_summary":"This instrument sets the rules for how an \"overall operating loss\" from a farm enterprise and related businesses is calculated and applied to reduce a person’s ordinary income when working out Farm Household Allowance. It also fixes maximum amounts for the activity supplement ($10,000) and the farm financial assessment supplement ($1,500). It affects farmers who claim the allowance, their partners, and businesses linked to the farm, because these rules change the assessable income used to set benefit rates and impose notification and allocation rules where multiple claimants share a loss."}},"importantCases":[],"_links":{"self":"/api/acts/farm-household-support-minister-s-rules-2024","history":"/api/acts/farm-household-support-minister-s-rules-2024/history","analysis":"/api/acts/farm-household-support-minister-s-rules-2024/analysis","conflicts":"/api/acts/farm-household-support-minister-s-rules-2024/conflicts","importantCases":"/api/acts/farm-household-support-minister-s-rules-2024/important-cases","documents":"/api/acts/farm-household-support-minister-s-rules-2024/documents"}}