Visit the ABA’s Financial Assistance Hub
Drought places enormous pressure on farming families, local businesses and regional communities.
Australia’s banks recognise that dry conditions don’t always follow official boundaries or timelines and that support needs to be available as soon as it’s needed.
You don’t need a drought declaration to get help
You don’t need a drought declaration to get support from your bank or to access Australian Government programs.
The Australian Government no longer makes formal drought declarations. Instead, a range of support options are available for customers experiencing hardship – to help farmers and agribusinesses prepare for, manage through, and recover from drought.
Support is based on your situation not a declaration
Drought affects every region differently. Some communities face long, slow declines in rainfall others feel the impact suddenly.
What matters most is what you’re experiencing on the ground.
If conditions are making it hard to meet your repayments or manage day-to-day costs, you can contact your bank to discuss support options at any time.
Contact your bank
If you’re worried about money, contact your bank as soon as you can. Your bank is there to help you. They have a dedicated team to talk through your options. The sooner you talk to them, the sooner they can help you find a solution that’s right for you. Find your bank’s financial hardship assistance team.
The Australian Government and the Australian Banking Association (ABA) are working together to ensure that farmers, agribusinesses and the community know support is always available, with no drought declarations required.
DownloadBank Assistance
When considering the type of assistance that might be appropriate, banks will assess the situation on a case-by-case basis and consider a customer’s specific circumstances.
Examples of bank assistance include:
-
- Waiving fees and charges – including break costs on early redemption of farm management deposits.
- Consolidating debt to help make repayments more manageable.
- Offering additional temporary finance to help cover short-term cash flow shortages – such as overdraft.
- Reducing repayments or restructuring your loan.
- Deferring principal loan repayments.
Farmer Y operates a wheat farm in South Australia. Farmer Y’s last two seasons were poor, with well below average growing season rainfall. Farmer Y’s bank was actively monitoring drought conditions, including Bureau of Meteorology data and local insights.
The Member Bank had already identified that Farmer Y was being impacted by drought conditions. This early recognition ensured that the Member Bank switched off default interest charges proactively. This early recognition enabled the bank to proactively engage with Farmer Y to provide tailored assistance. The bank offered additional finance to support cash flow needs, worked with Farmer Y to restructure existing facilities free of establishment fees, and provided other forms of practical, tailored assistance to help keep the farm operating and manage through the difficult period.
As the drought persisted and Farmer Y’s financial position further deteriorated, the farm eventually fell into arrears on some facilities. However, because of the ongoing engagement and the Member Bank’s clear understanding of the drought’s impact, default interest that would normally have applied remained switched off.
Farmer Y’s experience demonstrates how a customer-by-customer assessment enables Member Banks to deliver meaningful, timely support well before formal arrears occur, while also ensuring appropriate action is taken if repayment difficulties do arise. This approach helped Farmer Y stabilise their financial position and focus on recovery.
FAQ
If you’re experiencing financial difficulty due to dry conditions, reduced income, or other challenges, you can contact your bank to discuss assistance options. You can do this at any time, you don’t need a formal drought declaration to qualify for assistance.
You can also visit your state or territory government for drought support options or visit drought.gov.au
Contact your bank directly, either through your local branch, relationship manager, or hardship assistance team. Banks can guide you through the process and help identify the right support for your situation.
You can also find contact details for your bank’s financial assistance team here.
No. Banks recognise that drought and seasonal conditions can vary across regions. You just need to explain how the conditions are affecting your business or finances.
Banks aim to respond as quickly as possible once they understand your circumstances. In urgent situations, some assistance can be arranged immediately.
Banks have dedicated support teams that can offer tailored hardship packages based on your individual circumstances.
There are a range of assistance options that may be available from your bank, such as reduced or deferred loan repayments, temporary overdraft extensions, default interest and fee waivers, or restructuring existing loans to improve cash flow. Each case is assessed individually.
Seeking hardship assistance won’t automatically impact your ability to borrow in future. Banks view this as a responsible step to manage temporary financial pressure.
Visit your bank’s website, contact your relationship manager, or call the bank’s hardship assistance line. You can also find general guidance at ausbanking.org.au
