Farmers doing it tough will get extra lump sums of up to $13,000 upon reaching the end of a four-year limit on federal government payments.
The Morrison government announced on Thursday couples coming off the Farm Household Allowance will receive $13,000, while singles will collect $7500.
Changes to the allowance will be made through legislation introduced to parliament on Thursday.
The bill will allow farmers to receive the FHA payment four years in every decade.
It will also lift the amount families can earn outside of farming to $100,000 a year and let farmers count income from adjustment against their losses.
Drought Minister David Littleproud said the government recognised farming is a long game.
"Support in times of hardship is part of what is needed to help farmers and their communities through these difficult times," he told parliament.
Labor's agriculture spokesman Joel Fitzgibbon accused Prime Minister Scott Morrison of being "loose with the truth" and trying to "spin his way through the drought."
He said 600 farming families had their allowance cut off, with the figure expected to rise to 1100 by Christmas.
"It is a callous act, in fact the greatest act of bastardry by any government in the history of the federation to be taking our most desperate drought-stricken farming families off the the modest farm household allowance payment," he told reporters in Canberra.
Mr Fitzgibbon said the government's changes amounted to giving farmers a six-month extension after four years were up.
"The Senate doesn't sit next week, so I have no idea how the government proposes to get these modest changes through."
The FHA is a fortnightly payment calculated based on the rate of Newstart.
It has been criticised for having a complex application process, while there have also been concerns eligible farmers are not signing up.
Australian Associated Press