In the event of an emergency disease outbreak, compensation is determined by state/territory legislation and processes. The Emergency Animal Disease Response Agreement (EADRA) does not determine whether compensation will be paid.
This page explains how compensation is determined, who is eligible, and how it fits into the broader cost-sharing framework of EADRA.
What is compensation under EADRA?
Compensation is intended to help owners of animals that die from or are ordered for destruction because of an emergency animal disease (EAD) to restock and return to pre-outbreak levels. It is not designed to cover broader financial losses, such as lost income or market access.
How compensation is determined
Compensation is managed under state and territory legislation. The process typically involves:
- valuation of affected livestock and property
- submission of a claim to the local control centre
- assessment and payment by the relevant state or territory department
Valuation is usually based on local market (farm gate) value at the time of detection. Licensed valuers may assess high-value animals.
Types of compensation payments
- Initial payment: covers the market value of animals and property destroyed or lost due to the disease response.
- Top-up payment: may be provided if the cost of replacement livestock at restocking exceeds the initial compensation.
Cost sharing of compensation
Compensation costs may be eligible for cost sharing under EADRA if they’re part of an approved Emergency Animal Disease Response Plan (EADRP). The share of costs funded by government versus the affected industries depends on the disease category.
For example, for a Category 2 disease like foot-and-mouth disease (FMD), governments cover 80% and affected industries 20% of eligible response costs.
The Commonwealth initially underwrites the industry share, which is repaid over time through producer levies.
Animal welfare and compensation
Where animal welfare risks arising from a response (e.g. movement controls) cannot be adequately managed, the affected animals may need to be humanely destroyed.
If animals are destroyed for welfare reasons under approved plans, compensation or financial assistance may be available if:
- all non-destruction options were considered, and
- the relevant Chief Veterinary Officer approved destruction, and
- the action directly contributed to the disease management of the response.
The National Management Group may agree to cost share welfare related payments included in an approved Emergency Animal Disease Response Plan (EADRP)
Compensation vs. recovery
Compensation under EADRA is distinct from recovery or disaster relief.
Recovery services have separate funding mechanisms outside of the EADRA and state or territory disease control legislation, which governs compensation payments.
Recovery services, including business continuity support, are managed separately by government and non-government recovery agencies. Recovery agencies may operate at the local, state, and commonwealth levels.
Tax implications
Compensation paid to primary producers (those operating a primary production business), for livestock that have died or been destroyed as part of an official emergency animal disease response, is considered assessable primary production income. See our fact sheet for more information.
Who do I contact for more compensation information?
Before an EAD response, you can learn about compensation, valuation and recovery services by contacting your local government department of agriculture or primary industries.
If you’re located in or near an affected area during an EAD response, contact your local control centre.
More information
Related resources