Farm Business Assessment Scheme
Information for Applicants
Applications close on 30 June 2015 or earlier if available funds are exhausted
In 2014, the State Government announced the Farm Business Assessment Scheme (FBA) to assist eligible farm and pastoral businesses to access independent professional advice in relation to their business management, and financial situation.
These information notes only relate to the FBA scheme which provides an initial reimbursement grant of up to $5,000 per farm business. Should the farm business assessment and financial plan determine that additional consultancy is required to implement the plan; a further implementation grant of up to $5,000 may be claimed. The total grant funding available under this scheme is up to $10,000 per farm or pastoral business. Please note that the information you provide in your application will be used to assess your application for a FBA reimbursement grant.
The application and consultant’s assessment proposal should be completed with reference to these information notes. Applications need to be submitted online via the Department of Agriculture & Food Western Australia (DAFWA) website www.agric.wa.gov.au/rbdc on behalf of the Rural Business Development Corporation (RBDC). You need to be advised of the approval of you application before the commencement of the consultancy.
The FBA is available to farm and pastoral businesses regardless of whether you currently employ a professional consultant and/or accountant. The FBA allows you to employ a new independent professional to provide a farm business assessment under this Scheme, while you retain the services of your existing consultant(s).
The scheme is voluntary with no obligation to implement recommendations. It is designed to provide business assessment advice and options that benefit your business.
Eligibility criteria
To be eligible for the reimbursement grant you must be able to declare that:
· Your farm or pastoral business has been trading continuously as a farm business for at least two (2) years
· Your farm business is located in at least one of the specified Local Government Council areas
· Your farm or pastoral business has earned a gross income of at least $50,000 per annum over the last two (2) years or has the prospect of earning a gross farm income of at least $50,000 over the next two (2) years
· Your farm or pastoral business is experiencing financial hardship and/or difficulties servicing its debt
· At least one member of the farm or pastoral business derives at least 50% of his/her income from the farm business
· At least one member of the farm or pastoral business has spent more than 50% of his/her working hours over the last two (2) years working in the farm business
· At least one member of the farm or pastoral business has contributed more than 50% of his/her capital to the farm enterprise
Details of proposed consultancy
We request you employ an independent professional that has not dealt with your farm business before and who possesses the necessary skills, qualifications and experience to successfully complete your farm business assessment. The professional would have experience in at least one of the fields of agricultural consulting, accountancy or financial planning.
As this scheme’s focus is on enabling you to obtain one off independent professional advice, you can employ a new independent professional to provide a farm business assessment while you retain the services of your existing consultant(s). If you want to use your existing farm business consultant, you will need to provide compelling reasons for this in your application.
You should contact an independent consultant to seek a firm quotation for the work to be completed and the outcomes you wish to achieve. This will need to be included with your application as an electronic attachment.
You should select the best and most suitable person to provide the consultancy as you will be entirely responsible for employing them and preparing the terms of engagement. The consultancy they provide is for the benefit of your business.
The RBDC will, at its sole discretion, retain the right to refuse funding to any consultant who, in the opinion of the RBDC, does not possess the requisite skills, experience and qualifications to successfully complete the farm business assessment.
Before commencing any work, you and your consultant must agree on:
· how long the process will take
· how much the service will cost
· the basis for charging
· when and how you will receive a report (for example, your business may require a paper copy, however, you will need to submit an electronic version to DAFWA when claiming your FBA grant)
In formulating the scope of your FBA consultancy, you should allow the consultant adequate time for follow up consultancy services. This will ensure effective implementation of your plan and the successful achievement of your objectives.
The consultant needs to provide you with a written or electronic report. You will need to provide an electronic copy of this report to DAFWA when seeking reimbursement of the consultant’s fees (up to a maximum of $5,000 excluding GST). The consultant’s report for the initial grant will need to contain the following elements:
· A realistic YIYO budget to determine the commercial viability of your farm or pastoral business.
· The consultant will need to examine options when assessing your farm business’s situation, including:
o deferral and/or waiving of capital and/or interest repayments
o application/s for other government schemes of support
o restructuring the farm program
o restructuring of debt or assets
o any other scheme of arrangement, including exiting the industry
· Options for the business will need to be accompanied by a detailed financial plan;
Should the consultant’s initial report and financial plan determine that further consultancy would be beneficial to implement your plan; a further implementation grant of up to $5,000 is available. You may be invited to apply for the implementation grant online at the time of claiming the initial $5,000 FBA grant.
Assessment proposal
The scope of work agreed to between you and your proposed consultant will need to outline the main objectives you wish to achieve in completing your farm business assessment. This needs to include a financial plan and clearly identify the outcomes you are seeking.
Estimate of costs to complete the farm business assessment
You can nominate funds expected from the RBDC up to a maximum of $5,000 as payment. Any additional costs above the $5,000 for this initial consultancy will need to be met by you.
Claiming the initial grant and applying for the implementation grant
After your application for the initial grant has been approved by the RBDC, you will have three (3) months in which to claim your initial consultancy costs up to $5,000 (GST exclusive). Your claim will need to include:
· An electronic copy of your consultant’s report containing all required elements
· An electronic copy of your consultant’s tax invoice to your business and evidence of your payment of that tax invoice
· An electronic compliant tax invoice from your business to DAFWA (ABN 18 951 343 745) for the amount approved plus GST
Should your consultant’s report determine that further consultancy is required to implement the options identified in the business assessment and financial plan; your farm business may be invited to apply for an additional implementation grant of up to $5,000.
In order to claim the additional grant, you will need to submit the following within three (3) months from the date the implementation grant is approved:
· a second report (electronic) from your consultant detailing how the options identified in the initial report were implemented by using the additional consultancy;
· An electronic copy of your consultant’s tax invoice to your business and evidence of your payment of that tax invoice
· An electronic compliant tax invoice from your business to DAFWA (ABN 18 951 343 745) for the amount approved plus GST
Please note: Approval of a Farm Business Assessment Scheme initial or implementation grant must be obtained before any consultancy costs incurred by the farm business can be claimed.
Applicant details
You must complete all mandatory information fields about you and your farm or pastoral business, including:
· The business entity name is the legal name of the farm or pastoral business
· The farm or pastoral business ABN (Australian Business Number), which is used to automatically look up information from the Australian Business Register. This will include confirmation your business is registered for GST and confirm the type of your business (for example, sole trader, partnership, trust).
· You will need to nominate one member of the farm or pastoral business to act on behalf of the business for the purposes of this scheme
· You will need to provide contact details for your current farm business consultant, if you are using one.
· You will need to provide your bank account details as all grant payments are via Electronic Funds Transfer (EFT).
Application certification
You will need to certify that your farm or pastoral business meets the criteria as required by the FBA scheme.
Lodgement of application
You must submit your application for an initial grant online via www.agric.wa.gov.au/rbdc and follow the link to the ‘Farm Business Assessment Scheme’. As funds are limited, applications will be dealt with on a first come first funded basis.
Applications for the initial grant from the FBA scheme will close on 30 June 2015, or earlier if funds are exhausted.
Further Information
Freecall 1800 198 231
Web www.agric.wa.gov.au/rbdc
Post Rural Business Development Corporation
C/- Department of Agriculture and Food WA
Locked Bag 4
BENTLEY DELIVERY CENTRE WA 6983
ABN: 84 524 088 562
FBAS Information Notes V6 20042015 4