The Farm Financial Assessment (FFA) is a comprehensive assessment of the financial position of a farm enterprise and the person who is applying for Farm Household Allowance. It has multiple parts, some of which are completed by the person and some by the person’s prescribed adviser.
The purpose of the assessment is to develop and evaluate options to improve the financial position of the person through an analysis of their resources, liabilities, barriers and goals.
The FFA must be conducted by a qualified prescribed adviser in the approved form. For the purposes of the FFA, a person is a prescribed adviser if:
- the person has relevant financial qualifications; and
- the person is a member of a professional body whose members normally provide financial advice.
An example of a relevant financial qualification is a qualification:
- from a tertiary institution in a field that is relevant to giving financial advice; and
- that is recognised by a professional body whose members normally give financial advice.
Accountants and many agricultural consultants would meet the definition of a prescribed adviser. As most farmers would engage the services of an accountant, each farmer should be able to access an adviser to complete the FFA.
A prescribed adviser is not required to hold an Australian Financial Services Licence (AFSL) to qualify as a prescribed adviser as the licence is required for a professional who provides financial product advice rather than financial advice. However, if during the course of the conversation, the prescribed adviser recommends a particular financial product (not included in the FFA), they would be required to hold the AFSL.
The FFA includes a disclaimer to insure that prescribed advisers are aware of their requirements.
Preparing for a Farm Financial Assessment
Farmers should already have completed Part A of their FFA online prior to their appointment with a prescribed adviser. If they do not have a stable internet connection, they can request a hard copy of the questions from the Department of Human Services or download a PDF version of Part A from the
Department of Human Services website.
Guidance has been prepared to assist farmers to gather all the information they need to take with them when they meet with their prescribed adviser to conduct their FFA.
You are not required to fill in the information identified in this document. It is intended to help you complete your FFA – it is not the FFA itself.
Parts B, C and D should be completed following your appointment with a prescribed adviser.
Where a field in the FFA is not relevant to you or your partner, it will not appear in your final assessment.
Farm Financial Assessment - Companion Guide
The Companion Guide has been prepared to assist farmers and their prescribed advisers to complete a FFA. The guide explains each question in Parts A, B, C and D of the FFA and provides guidance to answering them, including worked examples and definitions of terms used in the FFA.