Murray-Darling Basin Small Block Irrigators Exit Grant Package
Applications for the small block irrigators exit grant package closed on 30 June 2009.
Exit grant applications that were lodged before the closing date with Centrelink and offers to sell water entitlements that were lodged with the Department of the Environment, Water, Heritage and the Arts are being processed.
On 20 September 2008, the Prime Minister and the Minister for Climate Change and Water jointly announced the Australian Government's new $57.1 million Small Block Irrigators Exit Grant Package designed to assist small block irrigators, particularly horticultural producers, in the Murray-Darling Basin. The Small Block Irrigators Exit Grant Package will be available until 30 June 2009, and forms a part of the Australian Government's Water for the Future plan.
On 13 February 2009, the Australian Government amended the eligibility criteria for this package to allow small block irrigators on farms up to 40 hectares in the Murray-Darling Basin to apply. The Australian Government has also increased funding provided for the removal grant from up to $10,000 to up to $20,000. The Australian Government will cover the extra costs associated with expanding eligibility for the exit package.
Murray-Darling Basin Small Block Irrigators Exit Grant Package
Small block irrigators in the Murray-Darling Basin affected by drought and climate change can get help to leave irrigation through the Murray-Darling Basin Small Block Irrigators Exit Grant Package while remaining on their farms.
The exit grant, of up to $150,000, is a one-off, taxable and time limited payment to farmers who wish to leave irrigation. In addition, two complementary grants will be included in the package:
- up to $20,000 for removing permanent plantings and other production-related infrastructure; and
- up to $10,000 for advice and training, including skills development, direction setting plans, succession planning and business advice.
The net asset limit is $350,000 for access to a full grant of $150,000. However, net assets exclude the value of up to 40 hectares of land and the principal home (if any) on the same land title.
If the value of other total net assets is above $350,000, irrigators may still be eligible for a reduced grant. For every $3 in assets above the threshold, the exit grant reduces by $2. This means that an irrigator cannot receive a grant of any amount if their net assets (excluding the house and land as outlined above) are more than $575,000.
Eligibility requirements
An irrigator may be eligible for the exit grant if:
- on 20 September 2008, they owned up to 15 hectares of farm land; and
- owned at least 10 megalitres of permanent entitlements to extract water from a watercourse that meet the criteria for the Restoring the Balance in the Murray-Darling Basin program; and
- are prepared to sell all of their permanent entitlements to extract water from a watercourse that meet the criteria for the Restoring the Balance in the Murray-Darling Basin program, and any acquired since that date, to the Commonwealth;
or
- if on 13 February 2009, they owned more than 15 hectares of farm land and up to 40 hectares of farm land; and
- had at least 10 megalitres of permanent entitlements to extract water from a watercourse that meet the criteria for the Restoring the Balance in the Murray-Darling Basin program; and
- are prepared to sell all of their permanent entitlements to extract water from a watercourse that meet the criteria for the Restoring the Balance in the Murray-Darling Basin program, and any acquired since that date, to the Commonwealth;
and
- their property is located in the Murray-Darling Basin (see map below); and
- they are willing to remove all permanent plantings and on-farm irrigation infrastructure; and
- they are willing to give an undertaking that neither they nor their farm land will be involved in irrigated farming for at least five years.
More about the Restoring the Balance in the Murray-Darling Basin Program (water entitlement purchasing)
Irrigators who wish to apply for the exit grant must agree to sell all of their permanent entitlements to extract water from a watercourse to the Commonwealth through the Australian Government's Water for the Future water entitlement purchasing program. The web link for accessing further information about selling water entitlements to the Commonwealth is at the bottom of this page.
Map of the Murray-Darling Basin
Source: Department of the Environment, Water, Heritage and the Arts
Complementary grants
Murray-Darling Basin Small Block Irrigators Exit Grant Package advice and training grant
Farmers who have successfully applied for the Murray-Darling Basin small block irrigators exit grant can also receive up to $10,000 for professional advice and training across a range of areas to assist them in the transition into new employment or dryland farming. For example, the grant could be used for skill development, direction setting plans, succession planning or business advice.
Murray-Darling Basin Small Block Irrigators Exit Grant Package removal grant
Farmers who successfully apply for the Murray-Darling Basin small block irrigators exit grant may also access up to $20,000 to help with the removal of all permanent plantings and other production-related infrastructure.
Access to the exit grant
The Australian Government requested State Governments agree to a number of reforms to enable the effective delivery of the Murray-Darling Basin Small Block Irrigators Exit Grant Package. Access to the package in each State was not conditional on other states agreeing to the reforms.
Support for water market reforms has been obtained from the Victorian, South Australian, New South Wales and Queensland Governments. The Murray-Darling Basin Small Block Irrigators Exit Grant Package is now available in each state until 30 June 2009.
More information
- Murray-Darling Basin Small Block Irrigators Exit Grant Package - fact sheet
- Murray-Darling Basin Small Block Irrigators Grant Package - Policy Guidelines 2008-09 (PDF - 388 KB) | (RTF - 755 KB)
Irrigators in Victoria, South Australia, New South Wales and Queensland can contact their local Centrelink office to obtain an application package for the program and to obtain further information.
The Centrelink Hotline number is 1800 050 015 for those irrigators wishing to obtain further information on the package.
More information on the Restoring the Balance in the Murray-Darling Basin program (water entitlement purchasing program) can be obtained by calling 1800 218 478.
Register your interest
Irrigators wishing to register their interest in the package, contact the Centrelink Hotline - 1800 050 015.
More information on the Restoring the Balance in the Murray-Darling Basin Program (water entitlement purchasing) can be obtained by calling 1800 218 478.
Media releases
- Small Block Irrigators Exit Grant package expanded - 24 April 2009
- Victorian Farmers Eligible For Drought Exit Grants - 3 February 2009
- Registrations of interest invited for Murray-Darling Basin Small Block Irrigators Exit Grant package - 2 November 2008
- New Exit Grant package to assist small-scale irrigators - 20 September 2008
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