- About us
- Our Ministers
- What we do
- Grants and funding
Drought Assistance Concessional Loans
Drought Assistance Concessional Loans are in initiative of the Australian Government to assist eligible commercially viable drought affected farm businesses to continue to operate through drought conditions, recover once the season breaks and prepare for future droughts.
The loans will be delivered as part of the Farm Business Concessional Loan Scheme. Under the scheme the Australian Government has provided Tasmania with a total of $15 million for the provision of both the Dairy Recovery Concessional Loans and Drought Assistance Concessional Loans.
Loans up to a maximum value of $1 million are available. The Department of State Growth/Tasmania Development and Resources will assess and decide if applications are eligible through a non‑competitive first-come first-served selection process.
Key features of the Drought Assistance Concessional Loan Scheme
- Loans are for eligible farm businesses for the purpose of debt restructuring, new debt for operating expenses or drought preparedness activities or drought recovery activities or a combination of these.
- Loan amounts will be up to 50 per cent of a farm business’s final debt position to a maximum of $1 million in total.
- A maximum 10 year loan term.
- A concessional variable interest rate will apply for the 10 year loan term.
- The interest rate is set by the Australian Government. As at 1 November 2016 is 2.47 per cent.
- Interest only payments are available for the first five years of the loan.
- Interest and principal repayments are required for years six to 10.
- Loans must be fully repaid or refinanced at the end of the agreed loan term.
- Applications will be assessed on the criteria included in the guidelines.
To be eligible for a Drought Assistance Concessional Loan an applicant must demonstrate that they meet the Drought Assistance Concessional Loan eligibility criteria.
Detailed information about the eligibility and assessment criteria is available in the Drought Assistance Concessional Loans Scheme Guidelines.
Bureau of Meteorology Rainfall Deficiency Report
You must submit a valid Bureau of Meteorology Rainfall Deficiency Report with your application.
This report identifies those areas that have experienced a rainfall deficiency, which extend 12 months or more. The 12 month period needs to be continuous, in whole months (ie. not part of a month) and wholly within the last two years.
The report will show whether your farm business is located in an area experiencing a rainfall deficiency, which is equivalent to, or worse than, a 1-in-20 year rainfall event.
If your farm business is not located in an area that has experienced a rainfall deficiency equivalent to, or worse than a 1-in-20 year rainfall event you may still be eligible. You will need to supply a valid report that shows your farm is located outside an area that has experienced a rainfall deficiency equivalent to a 1-in-20 year rainfall event.
A Rainfall Deficiency Report can be obtained using the Bureau of Mereology's Australian Rainfall Deficiency Analyser
Please use the following instructions to generate a report:
- Locate your farm business by using the "+" or "-" buttons to zoom in or out on the Australian Rainfall Deficiency Analyser.
- To ensure the necessary accuracy in obtaining a valid Rainfall Deficiency Report, continue using the zoom function until you have positively identified the location on your property report. To avoid selecting a neighbouring property in error, make your selection well within your property boundaries. An incorrect report will cause delays in processing your application.
- Once you have accurately located your farm business, click your mouse once and an option to download a Rainfall Deficiency Report becomes available. Click "download report", and then print the Rainfall Deficiency Report and attach it to your loan application.
- Alternatively, you may enter the individual latitude and longitude co-ordinates of your farm business location (if known).
- Your Rainfall Deficiency Report will be valid for a period of 60 days and forms part of your loan application. If you are unable to lodge your application within the 60 day period you will need to obtain a new report.
The Australian Rainfall Deficiency Analyser is updated on the 23rd of each month (or next business day).
When assessing applications State Growth will verify information provided by applicants.
The application period for Drought Assistance Concessional Loans has now closed.