The NSW Nationals have raised concerns about miscommunication between Labor Ministers and their departments involved in flood recovery efforts on the Mid North Coast.
Farmers unable to access the $75,000 primary producer grants were being directed by the Rural Assistance Authority (RAA) to apply for the $25,000 small business grant through the Reconstruction Authority (RA), despite those guidelines also ruling them out for that support.
When asked during a Budget Estimates hearing if the criteria would be changed, Agriculture Minister Tara Moriarty said, "it's not something that we're looking at."
Minister for Recovery, Janelle Saffin, refuted those comments a day later when she said the clause would be removed to allow farming businesses to apply from September 5.
NSW Nationals Leader Dugald Saunders said it's causing more unnecessary stress and confusion for people in desperate need of support.
"Devastated communities are relying on a clear and coordinated response to these life-altering floods, but one hand is not talking to the other," Mr Saunders said.
"We're seeing a massive breakdown in the communication lines between the Ministers involved and their departments and it's our primary producers and small business owners who are paying the price.
"The Minns Labor Government has completely let them down, preventing them from being able to access the support they should have been entitled to more than three months ago."
It was also revealed this week only about a third of primary producer grant applications have been approved so far and the overly complex guidelines are preventing farmers from progressing beyond the initial $5,000 payment.
"In her hearing Minister Moriarty herself admitted the conditions for accessing support had become harder, and now she needs to come clean about why she's deliberately putting up these roadblocks to stop the money from getting out the door," Mr Saunders said.
"Penalising the majority of people to prevent a small minority from doing the wrong thing simply isn't fair and is yet another indication of Labor's reluctance to help.
"This entire response will go down as the highest level of betrayal by any government, especially in people's time of need."