General criteria

The following conditions apply to transport subsidies available from NSW DPI through the relevant LHPA.

The decision of the Director-General of NSW DPI regarding eligibility under this Policy is final, including the amount of any subsidy that may be payable.

Submission of claims

Subsidies are only available on drought movements for grazing sheep, cattle, goats, deer, emus, ostriches, alpacas, llamas, camels, free range pigs and horses. Subsidies are not available for piggeries (other than free range), orchards, nurseries, any intensive industries or for the movement of bees by apiarists. Subsidies apply to both breeding and production stock.

The subsidies are not to be used for the movement of stock that are not fit to travel. Stock owners must always comply with the provisions of the Prevention of Cruelty to Animals Act 1979.

Stockowners who have agisted stock on their properties are not eligible for subsidy on any stock related (fodder, stock water, agistment, sale or slaughter) movements from their property for a minimum period of 8 weeks after the agisted stock leave the property. The exception is claims for the movement of domestic water.

The stock must be owned by the claimant for a minimum of 6 months before the date of the movement, or the animals are the progeny of such stock.

No subsidies will be paid if the number of stock on the property of origin prior to transport of stock to agistment or on return of stock from agistment is more than 10% greater than the notional carrying capacity for the holding unless the claimant can explain the discrepancy in writing to the satisfaction of NSW DPI.

An alternative to considering the notional carrying capacity is taking the average carrying capacity of the number of livestock indicated on Land and Stock Returns over the previous five years.

Claims are to be made through the local LHPA and must be submitted within three (3) months of the movement taking place. Claims submitted outside this time period may be assessed on a case by case basis if the claimant can demonstrate, in writing, the circumstances. Any reasonable reason will be considered for extending the time period out to nine (9) months, such as illness or invoices not being received for submission of claims on time. For consideration of payment of movements made outside the extended nine (9) month period, the letter must demonstrate extenuating circumstances such as serious extended family illness or legal issues that have prevented claims being made.

Subsidies will not be paid for infrastructure or equipment.

Costs of transportation must be paid prior to lodging a claim for the subsidy. Proof of payment must be provided with the application form. Owner carriers will be assessed on a case by case basis. Distance rates for owner carriers are set out in the table below and are indicative rates based on commercial transport costs, but are calculated not to include the cost of the applicant’s time, labour or margin for profit.

Owner Carrier Transport Rate Schedule

If the ABN is not supplied, the rebate will be reduced by an amount equivalent to the highest tax rate, which is subsequently forwarded to the Australian Taxation Office.

State drought declaration

Applicants are not eligible for transport subsidies on movements that are made after an area is no longer drought declared, except for returning stock from agistment to the property of origin. Stock must be returned from agistment to property of origin within three (3) months of the property coming out of drought to be eligible for transport subsidies.

Claimants eligible and maximum subsidy claimable

A single farming enterprise is:

1. any operation involving the breeding or keeping of livestock or a combination of those operations
2. whether conducted on one or more parcels of land
3. wherever in NSW the parcels may be situated
4. irrespective of the ownership of the parcels
5. whether or not the parcels are contiguous with each other.

Where the operation or operations:

1. are conducted by the same entity, whether a corporation (including a partnership or a trust) or an individual person, or
2. are reliant upon each other for their viability, or
3. result in income which is liable to income tax, or in losses which are claimable for income tax purposes, in the hands of any entity other than the entity conducting the operation which is a related body within the meaning of Section 50 of the Commonwealth Corporations Act 2001.

The following are examples of circumstances in which a subsidy, in respect of fodder or stock, exceeding $20,000 in any one calendar year will not be paid:

1. A family operates two properties as a single farming enterprise, where one property is situated in the Armidale area and its title is registered in the name of the son whilst the other property is situated in the Tamworth area and its title is registered in the name of the parents.
2. A company grows fodder on one property that it owns for the purpose of feeding stock that it keeps on another property.
3. A partnership owns a number of non-contiguous properties.

The maximum total subsidy, in respect of fodder or livestock, including water for livestock, will be $20,000 in any one calendar year in respect of a single entity, whether a corporation (including a partnership or a trust) or an individual person.

In addition, any LHPA ratepayer or person who rents/leases on LHPA rated land may claim up to $5,000 per single farming entity in any calendar year for subsidies for the transport of water for domestic purposes.

The agricultural enterprise conducted on the property has to have provided a significant proportion of the current owner’s gross income before the drought. An exception to this is the payment of subsidies for transport of domestic water, where the claimant must be a LHPA ratepayer or a person who rents/leases a house on land rated by the LHPA.

Eligibility criteria for fodder (including bees) transport subsidy

Where fodder has been donated to a drought affected area, the NSW Government will pay 100% of the freight (including GST) where the fodder is arranged and distributed to a number of drought affected farmers through a LHPA or other community organisation. Approval must be obtained.

Subsidies are payable on transport costs related to drought fodder movement. The movement must be to a landholder’s property, a travelling stock reserve, leased or agisted property.

There is no maximum distance for a single journey for the transport of fodder. However, for sea freight the maximum subsidy that will be paid is 50% up to a maximum claim of $40 per tonne irrespective of the distance travelled.

Subsidies are payable for genuine smaller vehicle movements within a property, where the initial vehicle transporting the fodder to the property is too large to transport the fodder to the appropriate storage location on the property. In these situations the owner must sign a statutory declaration to this effect.

Minimum load of fodder is 1 tonne. Loads of less than 1 tonne may be assessed on a case by case basis if eligible. If eligible, loads between 500-999 kg are paid at a rate of 25% of the transport cost. Loads below 500 kg are ineligible.

Subsidies will be paid for 25% of the transport cost for supplements, including liquid supplements, where the load is at least 500kg. Loads below 500 kg are ineligible.

No subsidies will be paid on unusual fodder materials not approved by NSW DPI, eg cotton trash or poultry manure.

Where a honey producer is making a claim for subsidy on the transport of bee foods, no subsidies will be paid for loads of less than 500kg.

Honey producers must obtain bee foods from the nearest practicable source to the bees.

Commercial feedlots, where stock are purchased, fattened and sold; and backgrounding, where stock are fattened prior to moving into a feedlot, are ineligible. However, stock running on a property when it becomes drought affected can be fed in opportunity feedlots for maintenance, with the transport subsidy applying.

Transport of fodder for stock consigned to a commercial feedlot on maintenance rations may be eligible for subsidies.

Producers who purchase fodder from a commercial feed supplier or processor are eligible to claim 50% of the transport cost for feed ingredients as well as transport of the feed from the supplier to the holding.

Commercial feed processors are not eligible for transport subsidies.

Fodder must only be obtained for the feeding of drought affected stock. The amount purchased per order must only be for a maximum three (3) month feed period for the stock on hand and not for long term storage purposes.

Download subsidy form