Bailiwick Legal regularly advises farmers on farm transfers and the exemptions that have been available. As we noted in January 2019, under the Duties Act, an exemption of duty was not available where the transferor of the land continued to be involved in the business farming the land after the transfer had taken place.
This position has now been amended under changes recently made to the Duties Act 2008.
On 13 June 2019 the Revenue Law Amendment Act 2019 came into effect, including changes to the family farm transfer exemption provisions under the Duties Act 2008. The changes are intended to re-establish the flexibilities that were available under the old laws for the generational transferring of farmland.
In the Explanatory Memorandum to the Bill, it is said that the changes will provide for the exemption from duty to apply where:
These changes to the family farm exemption provisions should allow greater flexibility for intergenerational transfers of farmland. This will be a positive outcome for rural businesses and planning for successions.
If you would like assistance with family farm transitions between generations, or family and business succession planning, please contact us on (08) 9321 5451 or by email at firstname.lastname@example.org or email@example.com.
For further information about our legal services, please visit our website: https://www.bailiwicklegal.com.au.
The above information is a summary and overview of the matters discussed. This publication does not constitute legal advice and you should seek legal or other professional advice before acting or relying on any of the content.