Farmers coming off welfare will be entitled to a new, one-off payment of $13,000 for families and $7,500 for individuals.
Fewer than 7,000 farmers currently receive the hardship payments despite much of the country experiencing drought
The payment will be available to farmers forced off the Farm Household Allowance (FHA) before July 2020 because they have exceeded the time limit permitted to receive the payments.
Opposition agriculture spokesman Joel Fitzgibbon said drought-affected farmers that had exceeded the limit should be allowed to continue to receive the FHA.
"It's the greatest act of bastardry by any government in the history of the federation," he said.