We’ve welcomed the Federal Government’s decision to increase the turnover threshold for access to small business capital gains tax (CGT) concessions from $2 million to $10 million, saying the change is a step in the right direction and will help deliver a fairer outcome for family farmers across Australia.
The VFF also welcomed confirmation that proposed minimum tax arrangements on trusts will not apply to testamentary trusts, providing certainty for farming families undertaking succession planning and intergenerational farm transfers.
VFF President Ryan Milgate said the announcements were a positive response to concerns raised by farmers and agricultural organisations, including the VFF following the Federal Budget.
“The VFF has consistently argued that the existing $2 million turnover threshold no longer reflects the realities of modern farming businesses.”
“Many family farms exceed that turnover figure while still operating on tight margins and facing significant seasonal, market and input cost pressures. The previous threshold risked locking genuine family farming businesses out of concessions that were designed to support small business.”
“The decision to lift the threshold to $10 million is a sensible and practical reform that recognises how agricultural businesses operate today,” Mr Milgate said.
The VFF wrote to Federal Treasurer Jim Chalmers in May, calling for the turnover threshold to be updated, warning that many family farms would be unfairly impacted if the settings remained unchanged.
Mr Milgate said the government’s decision demonstrated the value of listening to industry concerns and engaging constructively with the agricultural sector.
“We appreciate the Treasurer and the government taking on board the concerns raised by farmers and making changes that better reflect the structure of modern family farming enterprises.”
“This outcome will help ensure more farming businesses can access important concessions that support investment, business continuity and succession planning.”
“This builds on the Government’s decision in the budget to exclude primary production income from the minimum taxation on discretionary trusts and shows them understanding and responding to the unique pressures and circumstances farmers face.”
“Our team and the National Farmers’ Federation have done a power of work on these issues and it once again shows the value of an effective and unified farm lobby working together,” Mr Milgate said.