Documentation required to assess financial hardship
To request financial hardship consideration, you will need to complete and return a Financial Hardship Request Form. For full functionality of the PDF form, download and save the document to your computer before completing.
Financial Hardship Request Form
You will also need to provide copies of the following documents:
- most recent financial statements and tax returns
- most recent bank statement for your trading account
- year-to-date management results
- Australian Taxation Office (AT) integrated client account statement
- listing of aged debtors and creditors.
In some instances, a full financial assessment may be required, to enable the RAA to assess your position. Depending on your situation, we may ask you to provide any of the following:
- updated financial statements and tax returns for the business and related entities
- most recent payslips and copies of individual tax returns
- a document that outlines your statement of financial position including monthly living expenses
- Business Activity Statements for the past four quarters
- Running Balance Statement issued by the Australian Taxation Office (ATO)
- a business plan including cash flow projections for the next 12 months
- a plan for return to work or alternate sources of future income if the business has ceased trading
- a medical certificate or proof of serious illness or injury, if applicable.
Submitting a financial hardship request
Completed forms and supporting documentation should be sent to the RAA Recoveries team via:
recoveries@raa.nsw.gov.au
Please note, for joint loan account holders, financial hardship requests can be lodged without the consent of all parties. You should also be aware that if you proceed with a financial hardship arrangement, the information provided will be applied to all accounts you hold with the RAA.
Processing your financial hardship request
Once you’ve submitted your Financial Hardship Request Form and supporting documentation, we’ll send you an email to confirm your request has been received. If necessary, we may require further information from you to consider the request.
After the RAA has assessed your request, we'll confirm the outcome in writing and will advice whether a financial hardship arrangement can be entered into.
Please note in some cases, a financial hardship arrangement may not be appropriate for your circumstances. In this instance, we'll contact you to discuss other options that may be appropriate.
Financial hardship arrangements
A financial hardship arrangement is an agreement between you and the RAA to adjust your repayment obligations, to provide relief when you are experiencing difficulty repaying your loan.
There are two types of financial hardship arrangements:
- Temporary financial hardship arrangement which reduces or defers regular repayments for a period of time, for example, by reducing repayments for a few months or deferring repayments.
- Variation financial hardship arrangement which changes the terms of the loan, for example, in some cases, we may allow any overdue amount to be paid off over the remaining term of the loan.
If your Financial Hardship Request is approved, the RAA will recommend a financial hardship arrangement based on the nature of your financial difficulty (short term, where restoring your financial position is possible in a few months, or long term, where restoring your financial position will take longer than a few months).
It's important to remember that if we agree to temporarily reduce the amount you currently pay, you will still be required to make up the difference in the future.
Frequently asked questions
How long will the financial hardship request process take?
We are committed to providing prompt responses to our customers in financial difficulty. The RAA endeavours to respond within 20 business days of receiving all information from you.
How long can I receive financial hardship assistance?
We assess each financial hardship request on a case-by-case basis to provide a solution appropriate to your circumstances.
Will my credit rating be affected?
For business loans, we will not report any missed or late payments to a credit reporting body while you are being assessed for financial hardship assistance or while you are in a financial hardship arrangement with the RAA.
What happens when my financial hardship arrangement ends?
The RAA will be in contact with you throughout the financial hardship assistance process and will call you to advise your financial hardship arrangement is coming to an end and guide you through what happens next. We will also notify you in writing when the financial hardship arrangement comes to an end.
It's important to remember that if we agree to temporarily reduce the amount you currently pay, you will still be required to make up the difference in the future.
What happens if my circumstances don’t change at the end of the assistance period?
If this is the case, please contact the RAA Recoveries team so that we can re-assess your situation.
What happens if the request for financial hardship isn't supported?
The RAA will advise you in writing of the reason. You may wish to seek further financial advice from a financial counsellor or other third party, about the options available to you.
Other financial hardship support services and resources
Rural Financial Counselling Service
Rural Financial Counselling Services (RFCS) have a comprehensive support network of experienced counsellors to provide free, tailored, confidential and professional advice on a range of issues, including financial hardship. For more information, visit the RFCS website to find your local counsellor.
RFCS Northern region
Phone 1800 344 090
Visit the RFCS Northern website
RFCS Southern and Central region
Phone 1800 319 458
Visit the RFCS Southern and Central website
National Debt Helpline
Developed by financial counsellors, this service provides simple step-by-step guides explaining how to fix common debt problems. If you need further assistance, call 1800 007 007 to speak to a free and independent financial counsellor.
Phone 1800 007 007
Visit the National Debt Helpline website
Business.gov.au
Established by the Australian government to provide one-on-one financial support. You can talk to an experts over the phone, live chat or via email.
Phone 13 28 46
Visit business.gov.au
Small Business Debt Helpline
The Small Business Debt Helpline is a free service for small business owners in financial difficulty. They have qualified small business financial counsellors available to give independent and confidential advice.
Call 1800 413 828
Visit the Small Business Debt Helpline website
Beyond Blue
Beyond Blue run a free program for Small Business Owners called NewAccess. This program aims to assist with managing stress and mental health and does not require GP referral.
Financial Assistance Hub
The Australian Banking Association's Financial Assistance Hub provides a step-by-step guide on how to get out of financial difficulty.
Services Australia (Centrelink)
The Services Australia website provides information about Federal Government initiatives for individuals and businesses.