AgriFutures Calls for Tax Reform as Farm Businesses Diversify

New research from AgriFutures Australia has found Australia's tax system is struggling to keep pace with the changing nature of modern farm businesses.

The report shows producers are increasingly generating income from activities such as renewable energy projects, environmental markets and land access agreements as they look to improve business resilience.

However, AgriFutures says many of these income streams are not clearly recognised under existing tax rules, creating uncertainty and potentially increasing costs for farmers.

Managing Director Brianna Casey says agriculture has changed significantly over the past decade, but policy settings have not evolved at the same rate.

The research also highlights that more than half of farm income is now earned through companies and trusts, meaning many producers no longer qualify for tax concessions originally designed for sole traders and partnerships.

AgriFutures says updating tax definitions and improving recognition of emerging farm income streams could help support innovation, diversification and long-term sustainability across the agricultural sector.