Farm Leaders Raise Concerns Over Proposed CGT Changes

Australia’s peak farming groups are warning proposed changes to Capital Gains Tax could create unintended consequences for family farm succession and long-term business viability.

The issue was raised during last week’s National Farmers’ Federation Members’ Council meeting in Canberra, where farm leaders called on the Federal Government to safeguard intergenerational farming businesses.

National Farmers’ Federation President Hamish McIntyre says while the Government’s decision to retain small business CGT concessions is important, current thresholds are outdated and no longer reflect the realities of modern family farming operations.

He says family farms often represent decades of investment and are commonly relied upon to fund retirement while creating a pathway for younger generations to enter agriculture.

The federation fears poorly designed changes could place additional pressure on succession planning and make it harder for farming families to transfer businesses between generations.

Mr McIntyre says more work is needed to ensure tax settings do not unintentionally disadvantage farming families trying to secure the future of their operations.