Farmers Call for Capital Gains Tax Reform

The Victorian Farmers Federation is calling for urgent reform of small business capital gains tax concession thresholds, warning current settings are no longer fit for modern farming businesses.

In a submission to Treasurer Jim Chalmers, the VFF says thresholds have remained largely unchanged for nearly two decades, despite strong growth in farmland values across Australia.

The organisation says the six-million dollar asset test and two-million dollar turnover threshold have not kept pace with consolidation and rising land prices.

Acting President Peter Star says many family farms are now being excluded from concessions designed to support intergenerational transfer.

The VFF is proposing an increase of the asset threshold to twenty million dollars, along with higher turnover limits and retirement exemption caps, plus annual indexation.

The organisation says reform is needed to protect succession planning and support long-term regional production.