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					  1-Introduction                                                                                                             Page1


                          Australia's Farming Future - Climate Change Adjustment Program
                                 Farm Business Analysis and Financial Assessment

                                                  Financial Assessment Template

Farmers wishing to access the Climate Change Adjustment Program Advice and Training Grant must initially meet the income and
assets test administered by Centrelink. The Farm Business Analysis and Financial Assessment is a compulsory assessment of the
farmer's overall financial situation. This template must be completed as part of the Farm Business Analysis and Financial
Assessment form. Financial information provided by the farmer is used to determine the level of assistance required by the farmer to
develop their Climate Change Action Plan.

Step 1 - Complete Farmer/Prescribed Adviser details below:

1. Please enter the name of the farmer:                                                     Enter name of farmer

2. Please enter the name of the Adviser:                                             Enter name of Prescribed Adviser

3. Please enter the name of the Adviser's organisation:                            Enter Prescribed Adviser's organisation

4. Please enter the date of the assessment:                                                Enter assessment date




                                              60445ce8-60d3-4539-8ac9-831239d9747e.xls
2-Cash Flow & Historical Data                                                                                                          Page2


 Climate Change Adjustment Program - Financial Assessment
 Cash Flow and Historical Data
                            Year Ended 30th June

1. CASH FLOW - ENTER FIGURES FOR CURRENT FINANCIAL YEAR AND 2 FUTURE FINANCIAL YEARS
                                                          Current F/Y    Current F/Y       F/Y 1         F/Y 2
ANTICIPATED INCOME                                       next 3 months        0              1             2
                                                           (see note)
Sales (eg. crops/wool/cattle)
Agistment
Interest and Dividends
Rebates
Centrelink Payments
Off-farm Income
Trade Debtors
TOTAL ANTICIPATED INCOME                                             0                 0            0             0

ESTIMATED EXPENDITURE
Production Expenditure (eg cropping/livestock etc.)
General and Overhead expenditure
Personal/taxation/credit card
Capital expenditure
Financial expenditure (overdraft/loans/bank fees)
Off-farm Expenditure
Trade Creditors
TOTAL ESTIMATED EXPENDITURE                                          0                 0            0             0

MAJOR FEATURES OF PROJECTION:
Opening Cash Balance
Peak Overdraft
Cash Flow Surplus (Deficit)                                          0                 0            0             0
Closing bank balance                                                 0                 0            0             0

2. EXTRACT OF HISTORICAL DATA (INCOME/OPERATING COSTS/DEBT) - ENTER FIGURES FOR PREVIOUS 4 FINANCIAL YEARS
                                                        Previous F/Y 3 Prevous F/Y 2 Previous F/Y 1 Previous F/Y 1
HISTORICAL INCOME BREAKDOWN                                                                                            Average
Sales (eg. gross sales from crops/wool/cattle etc.)                                                                               0
Sundries                                                                                                                          0
Off-farm Income                                                                                                                   0
Other Income (eg. Centrelink payments)                                                                                            0
TOTAL INCOME                                                         0                 0            0             0               0

HISTORICAL EXPENDITURE BREAKDOWN
Salaries                                                                                                                          0
Private electricity/phone/motor vehicle                                                                                           0
Drawings from balance sheet                                                                                                       0
Total Drawings                                                       0                 0            0             0               0
Payments/Costs (eg. cropping, livestock)                                                                                          0
General & Overheads                                                                                                               0
Total Operating Costs                                                0                 0            0             0               0
Interest & Bank Charges                                                                                                           0
Depreciation                                                                                                                      0
Off-farm Expenditure                                                                                                              0
TOTAL COSTS                                                          0                 0            0             0               0
OPERATING SURPLUS                                                    0                 0            0             0               0
Surplus/Deficit after operating costs and drawings                   0                 0            0             0               0
DEBT HISTORY
Bank                                                                                                                              0
Sundry creditors                                                                                                                  0
Motor Vehicle loan                                                                                                                0
Other debt                                                                                                                        0
TOTAL DEBT                                                           0                 0            0             0               0
OPERATING RATIOS
Operating Costs as % of income                                     0%             0%               0%            0%              0%
Debt Service as % of income                                        0%             0%               0%            0%              0%
Debt/Income Ratio                                                    -              -                -             -               -




                                                      60445ce8-60d3-4539-8ac9-831239d9747e.xls
2-Cash Flow & Historical Data                                                                                         Page3




                                Current Financial Year Total Income Breakdown
                                                 0%
                                                 0%0%
                                                  0%




                                                                                     Sales (eg. gross sales from
                                                                                     crops/wool/cattle etc.)
                                                                                     Sundries

                                                                                     Off-farm Income

                                                                                     Other Income (eg. Centrelink
                                                                                     payments)




                                          Total Income Breakdown


          1


          1
                                                                                     Sales (eg. gross sales from
                                                                                     crops/wool/cattle etc.)
          1
                                                                                     Sundries

          1
                                                                                     Off-farm Income


          0                                                                          Other Income (eg. Centrelink
                                                                                     payments)

          0


          0




                                                 Total Income

          1
          1
          1
          1
          1
          1                                                                                            Total Income

          0
          0
          0
          0
          0




                                          60445ce8-60d3-4539-8ac9-831239d9747e.xls
2-Cash Flow & Historical Data                                                                                                 Page4



                                Current Financial Year Expenditure Breakdown
                                       0%0%
                                       0%
                                      0% 0%
                                       0%

                                                                                    Salaries


                                                                                    Private electricity/phone/motor vehicle


                                                                                    Drawings from balance sheet


                                                                                    Payments/Costs (eg. cropping,
                                                                                    livestock)
                                                                                    General & Overheads


                                                                                    Total Operating Costs


                                                                                    Interest & Bank Charges


                                                                                    Depreciation


                                                                                    Off-farm Expenditure




                                        Total Expenditure Breakdown

           1
                                                                                    Salaries

           1                                                                        Private electricity/phone/motor vehicle

                                                                                    Drawings from balance sheet
           1
                                                                                    Payments/Costs (eg. cropping,
                                                                                    livestock)
           1                                                                        General & Overheads

                                                                                    Interest & Bank Charges
           0
                                                                                    Depreciation
           0
                                                                                    Off-farm Expenditure


           0




                                              Total Expenditure

           1
           1
           1
           1
           1
                                                                                                   Total Operating Costs
           1
                                                                                                   Total Expenditure
           0
           0
           0
           0
           0




                                         60445ce8-60d3-4539-8ac9-831239d9747e.xls
2-Cash Flow & Historical Data                                                                         Page5



                                        Debt History

           1
           1
           1
           1
                                                                                Total Debt
           1
                                                                                Bank
           1
                                                                                Sundry creditors
           0                                                                    Motor Vehicle loan
           0
           0
           0
           0



                                  Applicant Performance

           1
           1
           1
           1
                                                                              Operating Surplus
           1
                                                                              Total Operating Costs
           1
                                                                              Total Income
           0                                                                  Total Surplus
           0
           0
           0
           0



                                Debt Servicing vs. Income

           1
           1
           1
           1
           1
                                                                           Income
           1
                                                                           Interest & Bank Charges
           0
           0
           0
           0
           0



                                   Debt to Income Ratio

                 100%
                  90%
                  80%
                  70%
                  60%
                                                                                       Total Debt
                  50%
                                                                                       Total Income
                  40%
                  30%
                  20%
                  10%
                    0%




                                60445ce8-60d3-4539-8ac9-831239d9747e.xls
3-Assets & Liabilities                                                                                                 Page 6

Climate Change Adjustment Program - Financial Assessment
Assets & Liabilities
                           Year Ended 30th June                          0

1. ASSETS & LIABILITIES TABLE - ENTER FIGURES BASED ON CURRENT MARKET VALUE

                          Assets                                    Description                Current Value ($)
                                                       (e.g. Livestock type, number, $/head)
Eg:
         Cash at Bank                                           Not to be altered
         Farm Management Deposit                                Not to be altered
         Tax Credit                                             Not to be altered
         Vehicles
         Produce on hand
         Farm Value (AVO)
         Stock on Hand
         Livestock
         Off-farm investments (financial)
         Off-farm investments (non-financial)
         Plant & Machinery/Equipment
         Non-farm assets
         Agricultural holdings
         Other
Total                                                                                                          0

                         Liabilities                               Description                 Current Value ($)

Eg:
         Tax Liability                                          Not to be altered
         Overdraft                                              Not to be altered
         Trade creditors                                        Not to be altered
         Mortgage
         Loans (Personal, Family)
         Lien
         Non-Farm Debt

Total                                                                                                          0

2. EQUITY TABLE

                                                                                                     EQUITY LEGEND
         Estimated Asset Value                                         $0
                                                                                                      %            Position
         Estimated Liabilities                                         $0                          80-100          Strong
                                                                                                    60-79          Damaged
         Estimated Equity                                              $0                          40-59           At Risk
                                                                                                     <40            Critical
       Percentage Equity                                               0%




                                            60445ce8-60d3-4539-8ac9-831239d9747e.xls
4-Eligibility Assessment                                                                                                                                       Page 7


                           Climate Change Adjustment Program - Financial Assessment
                           Eligibility Assessment
                           Note: The figures on this page are automatically populated from the Cash Flow and Historical Data tables in Tab 2, and the Assets
                           and Liabilities tables in Tab 3.

                                  Farm Business Cash flow


                                  Total income received for the farm business for the past 12 months (actual
                              1                                                                                                     $               -
                                  cash figure).

                                  Total expenses received for the farm business for the past 12 months
                              2                                                                                                     $               -
                                  (actual cash figure).

                                  Estimate of total income to be received from the farm business for the next
                              3                                                                                                     $               -
                                  12 months (cash only).


                                  Estimate of the total expenses to be paid by the farm business for the next
                              4                                                                                                     $               -
                                  12 months (cash only i.e. excluding depreciation and amortisation).


                                  Please ensure that the farmer can explain any significant variances
                                  (differences of more than 20%) in the estimated cash flows of the farm
                                  business over the next 12 months.


                                  Non-Farm Income


                                  Total amount received by the farmer from non-farm income for the past 12
                              5                                                                                                     $               -
                                  months (net of related expenses).

                                  Estimate of the total amount the farmer will receive from non-farm income
                              6                                                                                                     $               -
                                  for the next 12 months (net of expenses).


                                  If question 6 is 20% less than question 5 please ensure that the farmer can explain
                                  the fall in projected net non-farm income.


                                  Liquidity of Farm Business - over the most recent 3 months

                                  This test will be calculated over the most recent 3 months. If this amount is
                                  inappropriate due to timing or seasonal fluctuations the amount should be adjusted
                                  to reflect a more reasonable representation of the farmer's true financial position.

                                  Estimate of the amount of money currently owed to the farmer from farm
                              7                                                                                                     $               -
                                  sales (i.e. trade debtors).
                                  n/b exclude amounts which are likely to be written off as bad debts


                                  Current bank balance/overdraft (farm related only). If currently in an
                              8                                                                                                     $               -
                                  overdraft position this amount should be entered as a negative.


                                  Estimate of the current amount owed by the farmer to suppliers for
                              9                                                                                                     $               -
                                  goods/services purchased for the farm (i.e. trade creditors).


                                  Net amount current owed by/(to) the Australian Taxation Office (use a
                             10                                                                                                     $               -
                                  minus sign to indicate the money is owed to the ATO).


                             11   Farm Management Deposits (FMDs) currently held.                                                   $               -


                                  Debt and equity position - over the most recent 3 months

                                  This test will be calculated over the most recent 3 months. If this amount is
                                  inappropriate due to timing or seasonal fluctuations the amount should be adjusted
                                  to reflect a more reasonable representation of the farmer's financial position.


                                  Total assets of the farm business including current assets (including cash
                             12                                                                                                     $               -
                                  at hand, trade debtors and inventory) and non-current assets (such as land
                                  and buildings).


                                  Total amount of debt owed by the farmer in the farm business (including
                                  bank loans, leases and other forms of external finance as well as the
                             13                                                                                                     $               -
                                  farmer's overdraft and the potential liability if it has not been fully drawn
                                  upon).


                                  Non-farm assets


                             14   Market value of non-farm assets owned by the farmer.                                              $               -



                             15   Current balance of non-farm debt.                                                                 $               -



                                          Press here to assess eligibility                                                          Eligible for Group 1

                                  Note: the 'eligibility' assessment is not determined by the prescribed adviser, but is
                                  automatically calculated by the template based on the farmer's financial details.



                                                                            60445ce8-60d3-4539-8ac9-831239d9747e.xls
5-Eligibility Calculation                                                                                                                                                                        Page 8



                     Climate Change Adjustment Program - Financial Assessment
                     Eligibility Calculations
                                Note: The calculations on this Tab are automatically undertaken based on information provided in Tabs 2, 3 and 4.

                                The farmer will have passed the Centrelink income and assets test in the first instance. Test 1 and Test 2 should be passed to reflect the
                                Centrelink test outcomes. The outcome of Test 3 or Test 4 will determine the level of assistance under the Climate Change Adjustment Program
                                the farmer will receive to develop their Climate Change Action Plan. Explanations on each of the four tests used is provided at Tab 7 -
                                Explanations.
                                Please note that farmers with net assets greater than $1,500,000 automatically fail and are ineligible for the Climate Change Adjustment Program.


                                If the estimated income (cash flow) for the Farm Business, plus net non-farm
                            1                                                                                                               $41,600
                                income is greater than this amount the farmer fails this test.


                                If the market value of non-farm assets owned by the farmer less non-farm
                            2                                                                                                             $258,000
                                debt is greater than this amount the farmer fails this test.



                                If the liquidity (quick ratio) of the Farm Business is greater than this value the
                            3                                                                                                                   1.00
                                farmer fails this test.




                                If the debt to equity ratio of the Farm Business is less than this amount the
                            4   farmer may be ineligible for assistance under the Climate Change Adjustment                                     1.00
                                Program. The farmer is then tested against their total net assets.



                                If the total net asset position (including farm assets and principal residence) is
                                                                                                                                        $1,500,000
                                greater than this amount the farmer is ineligible for assistance.


                                Calculations Summary
                                Test 1 - Farm business income and net non-farm income                                                            -                       Passed
                                Test 2 - Non-farm assets                                                                                         -                       Passed
                                Test 3 - Liquidity (quick ratio)                                                                                 -                       Passed
                                Test 4 - Debt and equity position                                                                                -                       Failed
                                Total net asset position less than limit                                                                         -                       Passed

                                Overall eligibility                                                                                                            Eligible for Group 1
                                                                                                                                                       farmer is eligible
                                CATEGORY DEFINITIONS
                                GROUP 1 - CLIMATE CHANGE ACTION PLAN TO BE DEVELOPED WITH A RURAL FINANCIAL COUNSELLOR (CASE MANAGED)
                                Includes farmers in severe financial difficulty – the farm enterprise is not viable and there is no prospect of recovery; or
                                farmers in financial difficulty – the farm enterprise is borderline viable with insufficient liquidity and assets necessary to operate the farm business.
                                Changes are required to return to a viable position.
                                GROUP 2 - CLIMATE CHANGE ACTION PLAN TO BE DEVELOPED WITH ASSISTANCE FROM CENTRELINK (SELF MANAGED)
                                Includes farmers whose farming enterprise is financially viable with sufficient liquidity and assets to operate the business, however viability is at risk due
                                to ongoing drought, and changes are required to ensure ongoing viability.
                                GROUP 3 - Total Net Assets exceed allowable cap – farm enterprise has sufficient liquidity and assets to operate business with no Government assistance
                                required.




                                                                                60445ce8-60d3-4539-8ac9-831239d9747e.xls
6-Guidance                                                                                                                                                 Page 9


   Climate Change Adjustment Program - Financial Assessment
   Guidance for Eligibility Assessment

         Note: All amounts should be GST exclusive as any GST will be remitted or refunded by the ATO as a separate transaction.

     1   The total of farm business related income received for the previous 12 months. This should exclude amounts paid to the farmer as
         drawings or salaries to avoid double counting this income.

     2   The total of farm business related expenses paid for the previous 12 months. This should exclude amounts paid to the farmer as drawings
         or salaries.

     3   An estimate of farm business related income for the next twelve months. It should include any amounts which were included in Question 1
         (actual) with changes of more than 20% clearly explained.

     4   An estimate of farm business related expenses for the next twelve months. It should include any amounts which were included in
         Question 2 (actual) with changes of more than 20% clearly explained.

     5   Monies received from non-farm income in the last twelve months. This will include income received from another job or business, shares
         and other investments. This amount should be net of related cash expenditure e.g. interest on loans.

     6   An estimate of monies to be received from non-farm income for the next twelve months less any related cash expenditure. It should
         include any amounts that were included in Question 5 with changes of 20% clearly explained.

     7   An estimate of the amount of money currently owed to the farmer from farm sales. The farmer does not have to formally record these as
         trade debtors in the financial statements but should base this on known outstanding monies. The farmer is also encouraged to think about
         amounts that he/she might not receive due to bad debts and subtract this from the total.

     8   The total of all bank accounts/overdrafts relating to the farm business. If the farmer is currently in an overdraft position this amount should
         be entered as a negative. This balance should relate to operating accounts only and should not include finance loans etc

     9   The total of all monies owed to third parties for goods/services purchased for the farm.

    10   All monies owed to or by the Australian Taxation Office. This will include GST payable/receivable and PAYG withholding.


    11   The total of all Farm Management Deposits (FMDs) held by the farmer should be included in the liquidity test, as these funds may be
         drawn upon to add to the estimate of the farmer’s cash reserves.

         Note for questions 7 to 11: After entering all of the amounts, the farmer's current assets and current liabilities should be
         represented in full excluding inventory.

    12   Total farm assets including cash at bank, trade debtors, inventory, plant and equipment, and land should be included here. The farmer's
         most recent management reports should be used where available.

    13   The total amount of farm business debt (total liabilities). This should include all forms of finance including bank loans, hire purchase,
         interest only loans and leases. The farmer's most recent management reports should be used where available.

    14   The market value of the farmer's non-farm assets including investments such as shares, rental properties. This should not include any
         amounts held in superannuation funds.

    15   The total of any money owing on the above non-farm assets.




                                                           60445ce8-60d3-4539-8ac9-831239d9747e.xls
      7-Explanations                                                                                                                                                                                            Page 10


Climate Change Adjustment Program - Financial Assessment
Explanations
Farmers wishing to access the Climate Change Adjustment Program (CCAP) Advice and Training Grant must initially meet the income and assets test administered by
Centrelink. This test is applied so that:
▪   the value of the farmer's assets, worked out using the method set out in subsection 10(3) of the Farm Household Support Act 1992, does not exceed the assets value limit
    mentioned in subsection 10(4) of the Farm Household Support Act 1992; and
▪    assessable income must be below or within the "allowable income limits" used to calculate NewStart allowance.
Current Income and Asset Test rates:
▪   The current income test rate is based on the cut-off figure for couples undertaking equal work ($41,600 as at 20 September 2010)
▪   The current asset test rate is based on the Partnered (combined) Homeowners rate ($258,000 as at 1 July 2010)
Further eligibility criteria are outlined in the Financial Assessment (below).

Financial Assessment
The Financial Assessment is based on four tests that are designed to assess the financial status of the farmer and the farm business. A financially sound business would usually
have the following elements:
▪   an ability to earn profits or surpluses;
▪   an ability to generate sufficient cash flow (as profitability without liquidity is of limited benefit to a business);
▪   sufficient liquidity to meet short term cash flow obligations; and
▪   A finance structure whereby the entity is not in debt more than the value of the property (over leveraged), and has a sufficient level of assets to operate its business.


The four tests (outlined below) used in the financial assessment have been chosen to cover each of the elements shown above. Tests 1 and 2 are aligned with the Centrelink
income and non-farm assets tests that determines initial access to the program. While the farmer must have already passed these tests, their inclusion in the eligibility criteria will
enable a complete assessment of the farmer’s current financial situation to be provided to the farmer by the Prescribed Adviser. This assessment is an important foundation for
the farmer’s Climate Change Action Plan they will work through during their time on the program.


The four tests are:
▪   Test 1 - Farm business income and non-farm income
▪   Test 2 - Non-farm assets
▪   Test 3 - Liquidity
▪   Test 4 - Debt to equity position
In addition to the four tests, farmers will need to pass the Total Net Assets cap of $1.5 million.
The result of these tests will determine the level of assistance the farmer will receive to develop their Climate Change Action Plan, as outlined below:
Group 1 - Farmers who pass the farm business income and non-farm income (Test 1) and assets (Test 2) tests as well as either the liquidity (Test 3) or debt to equity (Test 4)
tests will be deemed to be severe financial difficulty. These farmers will be required to develop a Climate Change Action Plan with the assistance of a Rural Financial Counsellor.

Group 2 - Farmers who pass the farm business income and non-farm income (Test 1) and assets (Test 2) tests, but fail the liquidity (Test 3) and debt to equity (Test 4) tests will
be deemed to be financially viable, but have been impacted by the effects of climate change. These farmers will be required to develop a self-managed Climate Change Action
Plan with the assistance of Centrelink.
Group 3 - Farmers whose total net assets are deemed to be in excess of the allowable cap of $1.5 million are ineligible for assistance under the Climate Change Adjustment
Program.

Test 1 - Farm business income and non-farm income
The farming family’s total income (including their farm and off-farm income) is of primary importance to the farmer’s financial position. A farmer who is earning insufficient income
to cover their family’s living costs is unlikely to be in a position where they can fully consider their future adjustment needs. By focussing on the farming family’s estimated total
income for the next 12 months, past activities and income streams that may not be relevant to the farmer’s future financial position will be disregarded. Centrelink applies the
personal income test for NewStart Allowance and the estimates of income will align with Centrelink adjustments.


The 12 month period also takes into account peaks and troughs in the farmer's cash flow cycle.

Test 2 - Non-farm net assets
Asset tests are designed so that people with substantial assets, apart from their home, use these assets to meet their day-to-day living expenses before calling on the
Government for support. This test ensures that the farmer does not have significant net non-farm assets that should be used before seeking assistance from the Government.
To be eligible, the value of the farmer’s non-farm net assets must be less than the applicable NewStart Allowance asset test limit taking into account their homeowner status and
marital status.
The non-farm net assets test is based on the maximum amount of assets a couple could own to be eligible for other forms of government assistance (eg. NewStart). This
amount is adjusted in line with any changes to the NewStart Allowance assets test for homeowners (combined rate).


Test 3 - Liquidity
Within the financial sector, the ratio of cash/debtors is the most appropriate measure of liquidity for a farm business. This test will be calculated over the most recent 3 months by
dividing the farmer’s balance of cash by current liabilities (quick ratio). A ratio of greater than 1.0 indicates that an entity has adequate liquidity i.e. a sufficient level of current
assets to meet short-term financial obligations (liabilities). Farmers may be eligible for the Climate Change Adjustment Program if they have a quick ratio of less than 1.0.


The liquidity test will also consider the timing/seasonal aspect of farm businesses by ascertaining whether current assets held by the farmer are a representation of the farmer’s
true financial position or whether they expect current assets to rise or drop within a certain timeframe. The liquidity test will include (where relevant) a farmer’s overdraft if it has
not been fully drawn upon.

All Farm Management Deposits* must be included in the liquidity test, as these funds may be drawn upon to add to the estimate of the farmer's cash reserves.


Test 4 - Debt to equity position
A farmer with a low level of debt compared to assets should be able to extend their borrowings before seeking financial assistance from the Government. This test will be
calculated by dividing the farmer’s total debts by total net assets over the previous 3 months. A debt to equity ratio greater than 1 will be a pass as it indicates the farm may not
be able to increase its borrowings. The debt to equity test will include (where relevant) a farmer’s overdraft and the potential liability if it has not been fully drawn upon.

For example, a farmer might be generating only a small cash flow and reporting low equity. However, the farmer may hold a high level of net assets and a low level of borrowings
on their total assets. It is expected that the farmer would be in a position to extend their borrowings before seeking government financial assistance.


Total Net Assets
To maintain consistency with social security policy where persons seeking financial assistance from the taxpayer must first draw on their own resources, the total net assets held
by the farmer/family unit (including their farm assets and their principal residence) will be capped at $1.5 million. The cap acknowledges the unique circumstances of a farm
business where a level of net assets may be needed to maintain viability.
In order to ensure that assistance is provided to the correct target group for the Climate Change Adjustment Program, it is considered appropriate that eligibility for assistance be
subject to a net asset cap.

* Farm Management Deposits are offered under the Farm Management Deposits Scheme and are deposits offered by Authorised Deposit-taking Institutions to assist primary producers to deal more effectively with
fluctuations in their cash flow resulting from climate variations and changes in market prices.


                                                                                          60445ce8-60d3-4539-8ac9-831239d9747e.xls
8-Glossary                                                                                                                             Page 11



  Climate Change Adjustment Program - Financial Assessment
  Glossary of Terms - Cash Flow and Historical Data Tables (Tab 2)

  1. Cash Flow Table
  Anticipated Income
     Sales                                    Income received from sale of product/goods, eg crops, wool, cattle etc.
     Agistment                                Anticipated income from agistment arrangements where farm owner harbours and
                                              feeds stock for a third party.
    Interest and Dividends                    Anticipated income from investments, shares etc.
    Rebates                                   Deduction/partial refund on purchases.
    Centrelink Payments                       Any income support payments received from Centrelink, eg. Exceptional
                                              Circumstances Relief Payment.
    Off-farm Income                           Anticipated income from non-farm related employment, business, shares or other
                                              investments etc.
    Trade Debtors                             Anticipated amounts owed to the farmer from sales.


  Estimated Expenditure
    Production Expenditure                    Anticipated costs associated with producing goods, such as estimates of fuel
                                              allocation, seed, fertilizer, shearing, fodder, wool packs etc.
    General & Overheads                       Rates, rent, repairs, maintenance, insurance, electricity, phone etc (does not include
                                              private phone, electricity, motor vehicle expenses).
    Personal/taxation/credit card             Phone, electricity etc, amounts owed to the ATO, and credit card purchases on non-
                                              farm related expenses.
    Capital Expenditure                       Acquisitions or improvements to long-term assets such as property, plant or
                                              equipment.
    Financial                                 Overdraft, loans, bank fees.
    Off-farm expenditure                      Anticipated expenses relating to non-farm related employment, business, shares or
                                              other investments etc.
    Trade Creditors                           All monies owed to suppliers for good/services purchased for the farm business.


  2. Extract of Historical Data Table (Income/Operating Costs/Debts)
  Historical Income
     Sales                                  Total gross sales (eg before costs are deducted).
     Sundries                               Other income, such as insurance claims, interest and subsidies.
     Off-farm income                        Non-farm related employment, business, shares or other investments etc.
     Other income                           Centrelink payments etc.


  Historical Expenditure
    Salaries                                  Payment to staff, partners for work undertaken.
    Private/electricity/phone/motor vehicle   Non-farm related phone, electricity, motor vehicle expenses.
    Drawings from balance sheet               Withdrawals made from business, including cash, assets etc.
    Payments/Costs                            Costs associated with producing goods, such as fertiliser, seed, fodder, shearing,
                                              contracting, fuel etc.
    General & overheads                       Rates, rent, repairs, maintenance, insurance, electricity, phone etc (does not include
                                              private phone, electricity, motor vehicle expenses).
    Interest & Bank charges                   Charges paid to banks by way of interest on loans, fees, exceeding overdrafts etc.
    Depreciation                              Non-cash expense that reduces the value of an asset as a result of wear and tear,
                                              age etc.
    Off-farm expenditure                      Expenses relating to non-farm related employment, business, shares or other
                                              investments etc.




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8-Glossary                                                                                                                        Page 12




  Debt History
    Bank                                   Balance of debt owed to banks for loans etc.
    Sundry Creditors                       Balance of debt owed to small/occassional suppliers.
    Motor Vehicle Loan                     Balance of debt owed on motor vehicle loans.
    Other debt                             Balance of debt owed, including personal loans etc.


  Operating Ratios
   Operating costs as % of income          Shows whether the farm business has sufficient operating surplus to meet financial
                                           commitments, living expenses etc.
    Debt service as % of income            Shows proportion of farm receipts used to meet debt servcing costs. The higher the
                                           percentage the more difficulty the business will have in servicing debts and meeting
                                           other costs.
    Debt/income ratio                      Shows the sustainability of the debt load of a business and the ability of the business
                                           to service the debt.


  Other terms:
    Amortisation                           Gradual reduction of a liability, such a mortgage or loan through regular payments
                                           over a set period of time (including both principal and interest).
    Inventory                              A business’ goods, raw materials, work in progress and finished goods, which are
                                           considered to be liquid assets as they can easily be converted to cash.
    Farmer's overall financial situation   The Farm Business Analysis and Financial Assessment is a compulsory assessment
                                           of the farmer's overall financial situation (including business interests such as
                                           companies, trusts etc).




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