Farmer bodies have welcomed the Federal Government’s announcement of changes to superannuation tax that would have impacted some family farm businesses.

VFF president Brett Hosking said the announcement represented a common-sense response to the sustained concerns raised by the agricultural sector over nearly two years.

“It’s a common-sense outcome for a tax that never should have existed in its original form in the first place,” Mr Hosking said.

“So much unnecessary concern and worry could have been avoided if they consulted with the industry before wheeling this out.

“Victorian farmers are breathing a sigh of relief.

They faced the very real prospect of being forced to sell their land to pay tax bills on paper gains they had never actually realised.

“The government’s decision to tax only realised earnings, rather than unrealised capital gains, addresses the fundamental flaw in the original proposal that would have created impossible liquidity pressures for farming families.”

Mr Hosking said the decision to index the $3 million threshold was equally important, preventing bracket creep from progressively capturing more family farms over time as land values naturally increased.

The original proposal threatened over 3500 self-managed superannuation funds holding farmland across Australia from day one, with thousands more at risk as property values rose.

GrainGrowers has welcomed the announcement from Federal Treasurer Jim Chalmers that the Government will no longer pursue the taxation of unrealised gains in superannuation accounts, following sustained sectoral feedback and evidence of disproportionate impact on farming communities.

GrainGrowers chair Rhys Turton said the decision reflected a constructive shift in policy thinking after sustained advocacy from GrainGrowers, the NFF and other rural organisations.

Mr Turton said he was pleased the government had listened and acted to address a serious policy blind spot.

Earlier this year, industry representative body Australian Dairy Farmers brought to light the industry’s concerns around taxing unrealised gains and failing to index taxation thresholds.

ADF president Ben Bennett said the original proposal to tax unrealised gains put family farm businesses at risk.

“Farmers can now plan for the future with confidence, knowing their hard work and succession plans are safe from this unfair proposed taxation,” Mr Bennett said.

Leader of the Nationals David Littleproud said farmers have had an enormous win, after Labor retreated on its poorly conceived, reckless and cruel plan to tax unrealised gains on farms held in self-managed super funds.

Mr Littleproud said Labor had been embarrassingly forced to give in, after the Nationals and industry campaigned against the terrible plan and Labor faced a backlash across regional Australia.

“Labor’s plan to punish Australia’s hardest workers and attack their unrealised gains in superannuation was shocking from the start and never should have happened,” Mr Littleproud said.

The changes

Treasurer Jim Chalmers unveiled multiple changes to plans to tax large superannuation balances.

What is proposed?

What has changed?

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