Frequently asked questions
The questions and answers below relate to the Drought Relief Loan:
What is the objective of the Drought Relief Loan?
The Drought Relief Loan aims to provide immediate financial assistance to NSW primary producers affected by drought. It supports essential drought‑related activities needed to maintain operations and manage ongoing impacts. Eligible activities include animal welfare needs, on‑farm infrastructure improvements, and environmental management works.
How much funding is available under the Drought Relief Loan?
Approved eligible applicants can apply for a loan of up to $100,000. The availability of loans is subject to funds being available; no loans will be offered beyond the allocated funding.
Who can apply for a Drought Relief Loan?
The Drought Relief Loan is available to eligible sole traders, partnerships, trusts or private companies that operate in the primary production sector in NSW. To be eligible, applicants must earn at least 50% of their gross income, or at least $75,000 in one year, from the primary production business. Detailed eligibility criteria are provided in the Program Guidelines.
How much can I apply for, and how long do I have to repay the loan?
A loan of up to $100,000 is available per application, and up to 100% of the net, GST-exclusive cost of the eligible expenses can be borrowed. The maximum loan term is 5 years with monthly or quarterly repayments of principal and interest.
What is the interest rate on the Drought Relief Loan?
The interest rate applied to Drought Relief Loans is determined on the date the loan is first drawn down and remains fixed for the term of the loan. The interest rates are indexed to NSW Treasury Corporation bond rates, which can vary from month-to-month. The current interest rate is published on our website.
How is the interest calculated and charged?
Interest is calculated daily, and accrues from the first draw down of the loan with principal and interest repayments due as agreed (monthly, quarterly). Repayments commence when the loan is fully drawn down, or six months after the offer letter is signed, whichever occurs first.
What information do I need to provide with my application?
Applicants must provide a complete application form and a copy of the following documents:
- Most recent tax returns and financial statements for the primary production enterprise (including profit and loss, balance sheets, stock trading accounts and depreciation schedules)
- Most recent individual tax returns for all members (TFNs removed), plus a current list of assets and liabilities for each director, shareholder, partner or trustee
- Most recent tax returns and financial statements for any related business entities (if applicable)
- LGA rates notice and LLS rates notice (if available)
- Trust deed (if applicable)
- 12‑month monthly cash flow budget
- Bank details confirmation (for example, the front page of a bank statement showing account name, BSB and account number)
Ensure your documents are scanned individually, as they must be uploaded to specific sections throughout the form. Please note that the online form has file size restrictions (approx. 20MB total). For each attachment, please ensure the file size is 2.5MB or less to avoid submission issues.
Do I need to have a Farm Business Resilience Plan to apply for a Drought Relief Loan?
No. A Farm Business Resilience Plan is not required for the Drought Relief Loan.
What are the key steps in the loan assessment process?
Step 1 – Pre Assessment:
The RAA will conduct a preliminary review of your application to determine if all required documentation has been provided.
Step 2 – Initial Assessment:
The RAA will conduct an assessment to verify that the eligibility requirements are met and to determine your borrowing capacity.
Step 3 – Final Assessment:
The RAA will conduct business and personal credit checks.
Step 4 – Conditional approval:
You will be advised of conditional approval and will be required to pay fees applicable to your loan application, such as business searches and credit checks. Loan documentation will be prepared once payment is received.
Step 5 – Loan documentation:
Loan documents will be sent for signing.
Step 6 – Loan settlement:
Once all signed documentation is returned, you will be advised that the loan is ready to draw. Your initial upfront payment will be made up to the maximum $25,000.
Step 7 – Loan drawdown:
Valid tax invoices must be lodged via the RAA claim process outlined in our email upon loan settlement.
Are leaseholders eligible for a Drought Relief Loan?
The Drought Relief Loan is generally available to primary producers who own and operate the business and own the land (or are in the process of purchasing) on which the farming occurs and where improvements are proposed.
However, a loan will be considered for a leaseholder where they:
- have been leasing that land for more than three years
- have written approval from the landowner for the proposed works and
- can demonstrate an ability to repay the loan.
If I or a related entity receives income from outside Australia, will it be included in the RAA’s eligibility assessment?
Yes. All foreign income, regardless of its source, type, or origin, will be included in the assessment and classified as non-primary production income.
What can a Drought Relief Loan be used for?
Eligible activities are listed in the Program Guidelines.
Can I claim expenses incurred prior to lodging my application?
Yes, eligible expenses ordered, purchased or installed on or after 16 February 2026 (the date of the program announcement) can be claimed.
How long do I have to draw down the loan once my application is approved?
The loan must be fully drawn down within six months from the date the loan is established, that is, after receipt of the signed and dated letter of offer. The signed loan agreement must be returned to the RAA within one month. Once returned, you will be advised via email that the loan is ready to draw down. This email will include the link to submit invoices online.
Can I use my loan across various purchases or projects?
Yes, when completing your application, you can indicate the purchases and projects you intend to use the loan funds for.
Can I use the Drought Relief Loan to refinance debt?
No, the loan can't be used to refinance debt; however, invoices can be backdated to 16 February 2026 (the date of the program announcement).
Can I use the Drought Relief Loan to purchase a vehicle?
No. The program guidelines do not allow loan funds to be used for costs relating to motor vehicles including the purchase, modification, registration, insurance or operational costs of any motor vehicle.
Purchases of equipment are assessed on a case‑by‑case basis. Equipment used for livestock feeding or other drought management activities may be considered eligible.
Can I borrow funds to purchase equipment?
Equipment purchases will be considered on a case-by-case basis. Equipment used for livestock feeding and drought management activities may be considered. You may be asked to provide additional information for the purchase of equipment.
Why can fuel or diesel be claimed under disaster recovery grants but not under the Drought Relief Loan?
Disaster recovery grants allow fuel or diesel costs when they are directly related to clean up and recovery work after a natural disaster, such as using your own machinery to clear paddocks. This supports a quick return to normal operations.
The Drought Relief Loan does not allow fuel or diesel expenses because they are general operating costs and do not fall within the eligible activity categories of animal welfare, on farm infrastructure, or environmental improvements.
Can I claim costs for planting or sowing a crop under the Drought Relief Loan?
No. The Drought Relief Loan is intended to support expenses incurred during drought conditions. In most cases, primary producers experiencing drought would not be planting or sowing crops during this time.
Planting or sowing is generally considered an activity undertaken during the drought recovery phase. As a result, these costs may be eligible under the Drought Ready and Resilient Fund Loan, which can support eligible expenses across all stages of drought, including preparation, management and recovery.
Can I apply for a Drought Relief Loan if I've previously been approved for a Drought Ready and Resilient Fund Loan or a Drought Infrastructure Fund Loan (formerly the Farm Innovation Fund Loan)?
Yes, if you're assessed as eligible and serviceability permits, you can take out a Drought Relief Loan in addition to your already approved loans. Please refer to the Program Guidelines for further details.
Will I incur break costs if I pay off my loan early?
Yes, break costs may be payable. This cost will be calculated at the time the contract is broken and will take into consideration the following:
- total loan term
- loan length remaining on your fixed loan contract
- total amount of the loan
- the fixed interest rate applied to your loan
- current fixed interest rates on offer through the RAA.
What security is considered to support a Drought Relief Loan?
Applicants are not required to provide security for Drought Relief Loans.
How long do I have to apply?
There is no close date for submitting Drought Relief Loan applications. However, loans will not be offered beyond the allocated funding, early applications are encouraged.
How do I access the funds once approved?
Once you have been notified that your loan application is approved, you will be asked to pay the applicable search fees, and documentation will be sent to you for review and signing. Once the signed document is returned to the RAA, your loan will be set up in the system, and the RAA will email you with instructions on how to access funds by submitting a claim request. Upon approval of your claim request, payment will be processed to your nominated bank account. Please note that the RAA will not pay any suppliers directly.
Who do my invoices need to be addressed to?
Invoices must be made out to the legal name of the applicant, whether an individual or a business entity, as listed in the ABN (Australian Business Number) register.
Do I need to provide proof of payment?
No, proof of payment is not required when submitting invoices however the RAA may request for additional validation if necessary.
Is GST included in any payment received?
No. The GST component of any invoice received can be claimed when you complete your Business Activity Statement (BAS). The RAA will not issue a Recipient Created Tax Invoice (RCTI) on payment of the funds, and you should retain the ‘Payment Advice’ that is forwarded as a record for taxation purposes.
How does the RAA protect itself against fraud?
The RAA is committed to fraud prevention, detection, and response. Making a fraudulent application, including providing false or misleading information, is a criminal offence that carries a maximum penalty of two years’ imprisonment, or a fine of $22,000, or both. The RAA will also attempt to recover any assistance received through fraud. More information is available on the Fraud and Corruption Prevention page on our website.
Where can I seek assistance with my application?
- Rural Financial Counselling Service:
Free and confidential support is available from your local Rural Financial Counselling Service (RFCS). For more information, visit the RFCS website or contact the service in your region:
Northern region: 1800 344 090
Southern and Central region: 1800 319 458 - Translations:
If you need assistance with interpreting or translating, please contact Multicultural NSW:
Phone: 1300 651 500
Email: languageservices@multicultural.nsw.gov.au - Rural Assistance Authority (RAA):
If you have any questions about this program, you can contact our team:
Phone: 1800 678 593
Email: rural.assist@raa.nsw.gov.au