Farmers warn over impact of CGT reforms

Australia’s peak farm body is urging the Federal Government to modernise Capital Gains Tax concession thresholds, warning family farms could be unintentionally caught up in broader tax reforms.

The National Farmers’ Federation says current eligibility settings for small business concessions no longer reflect the scale and value of modern farming operations, with thresholds unchanged since 2007.

NFF President Hamish McIntyre says the sector supports aspects of the Government’s tax package, including permanent instant asset write-offs and trust exemptions for primary producers, but concerns remain around intergenerational succession planning.

Victorian grain and sheep producer Ryan Milgate says rising land values mean many farming businesses now exceed thresholds despite remaining vulnerable to seasonal pressures and fluctuating commodity prices.

The Federation warns without safeguards, farming families may be forced to delay succession, take on additional debt, or sell farmland to manage future tax liabilities.

The NFF says it will continue lobbying the Government and crossbench MPs to ensure family farms are protected from unintended consequences as the legislation moves through Parliament.