AUSTRALIAN farmers have claimed a monumental win, with the Federal Government set to revise its proposed ‘Super Tax’ following strong and united advocacy from the National Farmers’ Federation and its members.
NFF President David Jochinke said the Government’s decision to revisit the tax was the right one.
The tax will now only apply to realised earnings and the superannuation balance thresholds will be indexed.
“The policy would have had serious unintended consequences for thousands of family farms and small businesses who hold property in Self-Managed Superannuation Funds as part of their succession plans,” Mr Jochinke said.
“This is a monumental win for farmers, small business, and commonsense.
“From the beginning, we’ve said this policy of taxing unrealised gains risked family farm businesses. The Government has listened, and we thank them for that.
“Farmers can now plan for the future with confidence, knowing their hard work and succession plans are safe from this unfair tax.”
Mr Jochinke said the NFF has been campaigning on the issue for nearly two years, leading a coalition from the small and family business sector concerned about the taxation of unrealised gains.
GrainGrowers chair, Rhys Turton said modelling found more than 3500 self-managed super funds holding farming land would have been impacted from day one, with a further 14,000 at risk as property values increased.
“The decision was the right one,” Mr Turton said.
“We now look forward to continuing to work constructively with the Government on fair, practical policies that support long-term investment and succession planning for farmers.”
NSW Farmers President Xavier Martin said the news is a huge relief for farming families who’ve been staring down the barrel of a tax that never should’ve applied to them in the first place.
“The Government’s rethink shows they’ve listened to reason,” Mr Martin said.
“Farmers plan long term, in decades, not financial years, and this decision gives them the confidence to keep building farm businesses they can succeed for the next generation.”
Australian Dairy Farmers President, Ben Bennett said the outcome shows what can be achieved when agriculture stands together and sticks to the facts.
“It’s a great result for farmers and small businesses right across the country,” Mr Bennett said.
“The Government’s willingness to listen and act means more certainty for family-owned farms to invest and plan for the future – that means to keep growing, keep employing and keep investing in their local communities.”
News the Federal Government will overhaul its proposed superannuation tax has come as a win for farming families in NSW.
NSW Farmers’ president Xavier Martin said it was good to see the lobbying efforts of the state’s peak farm body had finally paid off after years spent advocating against the Treasurer’s original draft tax.
“The government wanted to tax money people hadn’t earnt, because they’ve supposedly made money on assets they hadn’t sold – and it’s good to see they’ve finally seen sense on this super tax,” Mr Martin said.
“Thousands of Aussie farming families have their businesses or farm assets in self-managed superannuation funds, and this tax would have crippled them if it had gone ahead unchanged.
“Farmers now have a shot at a brighter future, where they can continue to feed the world and use superannuation structures to support succession planning, without senseless taxes to cripple them.
“It’s a good day to be a farmer, and we’d like to thank our Treasurer and those on all sides of Parliament who drove these changes on the nation’s behalf. They’ve done the right thing by the people who feed and clothe our wonderful country.”
