Under the means testing arrangements, all individuals involved in small farms and small businesses are assessed on a purely factual basis.
In assessing the means of an individual involved in a small farm or business, account is taken of the net income which the applicant may reasonably expect to receive in the year from the date of the claim. That assessment is generally based on income actually received during the preceding the date of the claim. Allowance is made for the expenses incurred in earning that income.
In the case of farming in particular, means are assessed by reference to sales of stock and farm produce in the past 12 months, as verified by receipts for sales, plus income from grants and subsidies. Expenses actually and necessarily incurred in earning that income are deducted from income to establish the individual's means.
The existing method of means assessment has the flexibility to cater for fluctuations in income, in that it is open to claimants who consider that they may be entitled to a higher rate of payment as a result of a significant reduction in their means, to apply, in the normal manner, to have their assessments reviewed.
