The Commonwealth Government has announced a Farm Finance package consisting of four measures:

• short–term assistance in the form of concessional loans of up to $650,000 for productivity enhancement projects or debt restructuring
• funding for up to 16 additional full–time counsellors with the Rural Financial Counselling Service
• increasing the non-primary production income threshold for Farm Management Deposits (FMDs) from $65,000 to $100,000, and allowing consolidation of existing FMD accounts
• establishing a nationally consistent approach to farm debt mediation.

The government will introduce legislation to give effect to the FMD changes. It is anticipated that the changes will take effect from 1 July 2014.

The government will work with the banking and agricultural sectors as well as the states and territories to progress a consistent approach to farm debt mediation. NSW and Victoria have different schemes and Queensland does not have one: Background

The Government has written to the State and Northern Territory (NT) Governments asking for their support in delivering components of the package.