Red tape cut for drought support payments

Farmers will no longer risk accruing federal government debts from welfare overpayments as the coalition moves to simplify the approval criteria.

Agriculture Minister David Littleproud has introduced the underpinning legislation to parliament, which will see the farm household support payment paid based on current income rather than an estimate.

"Predicting income is difficult. Farmers have told us that loud and clear," he said on Thursday.

Under current arrangements farmers receive a rate of payment based on an estimate they make 12 months in advance.

The government then cross checks that with tax office data and either have to pay farmers more, or farmers owe the government money.

The draft legislation would also give farmers longer to undertake a farm financial assessment after receiving a notice from Services Australia, by removing the 28-day time limit.