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Assessment of Non-Farm Income


Last amended: 18 August 2014


Assess actual income not deemed income


In the assessment of non-farm income for the Farmers' Income Test, deemed income was not calculated on financial assets.  Income from financial assets was assessed using the actual income amount received, as disclosed on the income tax return.

Actual income relating to financial assets

The table below sets out the income that should be assessed for various forms of financial assets:

Financial Asset

Income to be assessed

Bank accounts, cash deposits, debentures, loans etc.

Interest paid

Shares and managed investments

Dividends or distributions paid plus capital gains

Imputation credits and foreign tax credits


Annuities and other income streams

Net taxable income as shown on tax return


If the farmer or their partner had disposed of any assets during the three years prior to divestment, no income was assessed, as no actual return would have been received.

If the person was able to qualify for a pension or allowance by using RAFS however, a reduction in pension could still apply through assessment of gifts under the deprivation provisions.

Payments not assessed as income


When calculating income, the following payments would not be assessed as income:

  • income support payments including Family Tax Benefit,
  • Youth Allowance or ABSTUDY,
  • payments made under the Farm Household Support Act 1992 (repealed 2014),
  • payments made under the VEA,
  • eligible termination payments.
Assessment of all other income

All other non-farm income normally assessable under the pensions income test would be taken into account under the Farmers' Income Test.