Governments on both sides of the border are recognising the importance of effective succession planning for the long-term viability of family farming businesses. Two new opportunities have become available this year.
Family Stamp Duty Exemption extends to Superfunds (NSW)
An exemption now applies to stamp duty on the transfer of a family farm in New South Wales from a self-managed superannuation fund to a family member.
This will provide significant benefits in family succession and estate planning.
Prior to the amendment of the NSW Duties Act earlier this year, the family farm transfer duty exemptions could not be obtained where the property was being transferred from a super fund.
This change means it may now be more viable to hold family farming property in a super fund– knowing a future transfer out may not cause a further stamp duty imposition.
In spite of this, transferring property involving super funds, is not something that should be done without considering all the possible effects and seeking both legal and financial advice as to the impact on your particular situation.
Family business concession eligibility just got wider (QLD), for a while
The Queensland Government has once again widened the class of ‘defined relatives’ eligible for the transfer duty concessions on family farms.
A first cousin and their spouse are now included in the definition of a defined relative. This means that transfers of farming property between cousins will not incur transfer duty, even where market value is paid.
The inclusion of a first cousin and their spouse as a defined relative will end on 22 May 2018 and is designed to encourage primary producers to consider succession planning and review their current business structures.
A defined relative is your spouse and any of the following people related to you and your spouse:
- Brothers, sisters, nephews and nieces;
- Children and grandchildren;
- Aunts and uncles;
- First cousins (until 22 May 2018); and
- The spouse of any person mentioned above