{"id":"F2016L00671","name":"Farm Household Support (Non-farm Assets) Minister’s Rule 2016","slug":"farm-household-support-non-farm-assets-minister-s-rule-2016","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":129232,"registerId":"commonwealth-F2016L00671-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Name of rule","content":"#### 1 Name of rule\n\n  This rule is the Farm Household Support (Non-farm Assets) Minister’s Rule 2016.","sortOrder":0},{"sectionNumber":"3","sectionType":"section","heading":"Authority","content":"#### 3 Authority\n\n  This rule is made under the Farm Household Support Act 2014 (the FHS Act).","sortOrder":1},{"sectionNumber":"4","sectionType":"section","heading":"Modification of Part 3.12 of the Social Security Act","content":"#### 4 Modification of Part 3.12 of the Social Security Act\n\n  Division 1 of Part 3.12 of the Social Security Act 1991, as modified by section 95 of the FHS Act, has effect for the purposes set out in section 91 of the FHS Act as if the following section were inserted after section 1118AC:\n\n1118FHS Farm‑related assets\n\n  Application\n  (1AA) This section applies in relation to a claim for farm household allowance that was made before the commencement of item 5 of Schedule 2 to the Farm Household Support Amendment Act 2017.\n  Interpretation\n  (1AB) For subparagraph (1)(a)(i) and paragraph (2)(a), a reference to the Farm Household Support Act 2014 is a reference to that Act, disregarding the amendments made by Schedule 2 to the Farm Household Support Amendment Act 2017.\n  Calculation of value of person’s non‑farm assets\n  (1) In calculating the value of a person’s non‑farm assets:\n    (a) disregard the value of any asset held by the person which:\n    (i) is not an asset of a kind described in paragraph 35(1)(a), (b) or (c) of the Farm Household Support Act 2014; and\n    (ii) is held for the purpose of the carrying out of a farm enterprise (within the meaning of the Farm Household Support Act 2014) by the person or the person’s partner and is not held, or capable of being held, for any purpose other than the carrying out of a farm enterprise; and\n    (iii) is neither cash nor an amount deposited with, or lent to, a bank or financial institution; and\n\n> Note: Example: A milk producer holds shares in a company to which they supply milk. That company is a co‑operative: to supply milk to the company, the producer must own shares in the company, and no other persons are able to hold shares in the company. In this case the asset is held by the producer solely for the purposes of carrying out a farm enterprise and is not capable of being held for any other purpose.\n\n    (b) apply subsections (3) to (6).\n  Water entitlements\n  (2) For subsections (3) to (6), a water entitlement asset is an asset which:\n    (a) is not an asset of a kind described in paragraph 35(1)(a), (b) or (c) of the Farm Household Support Act 2014; and\n    (b) is a right or entitlement to water or to its holding, access, take or other use, including:\n    (i) a water access entitlement, being a perpetual or ongoing entitlement, by or under a law of a State or Territory, to exclusive access to a share of the water resources of an area in the State or Territory; or\n    (ii) a water allocation, being a specific volume of water allocated to a water access entitlement in a given period; or\n    (iii) an irrigation right within the meaning of the Water Act 2007; or\n    (iv) a water delivery right within the meaning of the Water Act 2007; and\n    (c) is held by the person wholly or mainly for the purpose of the carrying out of a farm enterprise (within the meaning of the Farm Household Support Act 2014) by the person or the person’s partner.\n  (3) If the person is not a member of a couple and the total value of the water entitlement assets held by the person does not exceed $1,100,000, each of those assets is to be disregarded.\n  (4) If the person is not a member of a couple and the total value of the water entitlement assets held by the person (the non-partnered water assets total) exceeds $1,100,000:\n    (a) the person is taken to hold one water entitlement asset; and\n    (b) the value of that asset is taken to be the amount by which the non‑partnered water assets total exceeds $1,100,000.\n  (5) If the person is a member of a couple and the total value of the water entitlement assets held by the person or the person’s partner does not exceed $1,100,000, each of those assets is to be disregarded.\n  (6) If the person is a member of a couple and the total value of the water entitlement assets held by the person or the person’s partner (the partnered water assets total) exceeds $1,100,000:\n    (a) the person and the person’s partner are taken to hold jointly one water entitlement asset; and\n    (b) the value of that asset is taken to be the amount by which the partnered water assets total exceeds $1,100,000.\n  Charges and encumbrances\n  (7) For the purposes of section 1121, an asset to which paragraph (1)(a) refers is to be treated as an asset to be disregarded (and an asset whose value is to be disregarded) under section 1118.\n  (8) To avoid doubt, section 1121 applies to a water entitlement asset when calculating the value of the water entitlement asset for the purposes of subsection (3) or (5), a non-partnered water assets total for the purposes of subsection (4) or a partnered water assets total for the purposes of subsection (6).\n  (9) Section 1121 does not apply in relation to an asset which paragraph (4)(a) or (6)(a) deems to be held.","sortOrder":2}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose: modifying the assets test for Farm Household Allowance claimants. The rule addresses specific technical issues (water entitlements and farm-specific assets) that fall squarely within the original intent of the Farm Household Support Act 2014 framework."},"complexity_factors":["Nested conditional logic with multiple thresholds ($1.1M water entitlement caps) that differ based on relationship status (single vs couple)","Cross-references to three separate Acts: Farm Household Support Act 2014, Social Security Act 1991, and Water Act 2007","Temporal limitation — only applies to claims made before a specific 2017 commencement date, requiring readers to check historical claim dates","Deeming provisions in subsections (4) and (6) that treat multiple assets as a single fictional asset with a calculated value","Complex defined terms including 'farm enterprise', 'water access entitlement', 'water allocation', 'irrigation right', and 'water delivery right' that import definitions from other legislation","Interaction between subsections (7), (8), and (9) regarding how charges/encumbrances (debts secured against assets) apply differently to different categories of assets","Modification of existing legislation (Part 3.12 of Social Security Act) rather than standalone operation, requiring readers to understand the base law"],"plain_english_summary":"This rule changes how Centrelink assesses assets for the Farm Household Allowance, carving out exemptions so certain farm-only assets and large water entitlements don’t count — or count only above a $1.1 million threshold — when testing eligibility. It’s a transitional measure for farmers with claims predating a 2017 law change. The aim is to avoid denying support to farmers who are asset-rich on paper but cash-poor in practice."},"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":true,"description":"The rule expands and clarifies the asset‑test scope for certain pre‑amendment Farm Household Allowance claims by inserting section 1118FHS. It creates a farm‑related asset disregard, defines 'water entitlement assets' and their component types, sets a $1,100,000 per‑person or per‑couple disregard threshold and prescribes how excess is deemed and valued, modifies application of s1121 to those assets, and limits operation to claims made before commencement of item 5 of Schedule 2 (see 1118FHS(1AA), (1)–(6), (7)–(9))."},"complexity_factors":["Cross‑reference to multiple Acts and provisions: inserts new section into Part 3.12 of the Social Security Act 1991 and operates for purposes in s91 of the Farm Household Support Act 2014 (see header and 1118FHS(1AA),(1AB)).","Transitional scope: applies only to claims made before the commencement of item 5 of Schedule 2 to the Farm Household Support Amendment Act 2017 (1118FHS(1AA)).","Detailed asset definitions: distinguishes assets 'not of a kind' in s35(1)(a)–(c) and assets held 'wholly or mainly' for carrying out a farm enterprise (1118FHS(1)(a)(i)–(iii), (2)(c)).","Special treatment and thresholds for water entitlements: defines several water right types (2(b)(i)–(iv)) and sets a $1,100,000 disregard threshold with different aggregation rules for single vs partnered claimants (1118FHS(3)–(6)).","Interplay with encumbrance and valuation rules: refers to section 1121 for charging/encumbrance treatment but also contains deeming exceptions where assets are 'taken to hold' (1118FHS(7)–(9)).","Deeming and aggregation mechanics: when totals exceed the threshold the law deems a single asset and values only the excess, affecting valuation logic (1118FHS(4)–(6)).","Exclusions from disregard: cash and bank deposits are explicitly excluded from the farm‑related asset disregard, adding a technical valuation boundary (1118FHS(1)(a)(iii)).","Ambiguous factual tests: terms like 'held wholly or mainly for the purpose' create factual inquiries that increase administrative discretion and compliance burden (1118FHS(1)(a)(ii), (2)(c))."],"plain_english_summary":"Changes how non‑farm assets are counted for Farm Household Allowance claims made before item 5 of Schedule 2, 2017. It tells decision‑makers to ignore some assets held solely for carrying out a farm enterprise and treats water entitlements specially: water rights held for farming are disregarded up to $1.1 million for an individual or couple, with any excess counted as an asset. The rule alters who is assessed, how asset values are calculated, and how encumbrances are applied (see 1118FHS(1)–(6), (8)–(9))."}},"importantCases":[],"_links":{"self":"/api/acts/farm-household-support-non-farm-assets-minister-s-rule-2016","history":"/api/acts/farm-household-support-non-farm-assets-minister-s-rule-2016/history","analysis":"/api/acts/farm-household-support-non-farm-assets-minister-s-rule-2016/analysis","conflicts":"/api/acts/farm-household-support-non-farm-assets-minister-s-rule-2016/conflicts","importantCases":"/api/acts/farm-household-support-non-farm-assets-minister-s-rule-2016/important-cases","documents":"/api/acts/farm-household-support-non-farm-assets-minister-s-rule-2016/documents"}}