Now is a great time to organise a succession plan for your farm business. There are two Queensland Government incentives currently available that could potentially make the process more cost effective for you, however both have time limits.
Stamp duty relief on family farm transfers
The first initiative is stamp duty relief that came into effect from 12 October 2016. Recent changes apply for the period from 23 May 2017 to 22 May 2018, on the transfer of property (including water allocations) used for the business of primary production between family members. This includes both land used primarily to carry on a primary production business e.g. an adjoining property for farm manager/ owner to reside and personal property used to carry on the business on the land.
The end date for availability of the stamp duty relief has recently been extended to 22 May 2018. The definition of relative to include:
- the person’s spouse
- a parent of the person or the person’s spouse
- a grandparent of the person or the person’s spouse
- a brother, sister, nephew or niece of the person or the person’s spouse
- a child or grandchild of the person or the person’s spouse
- an aunt or uncle of the person or the person’s spouse
- the spouse of anyone mentioned in paragraphs (b) to (f).
Contact Wright Clarke Solicitors for legal advice on succession planning and to determine your eligibility for stamp duty relief. Here is more information on succession planning and you can also take a read of our article, “Have you thought about who will get the family farm?
Primary Producer Grant Offer for succession planning
The second opportunity for cost saving on succession planning is the Queensland Rural Adjustment Authority’s Farm Management Grant. This grant offers eligible applicants a grant for 50% of professional fees relating to family succession plans capped to a maximum contribution of $2,500 per year across multiple applications.
The Grant is available from 23 March 2017 until 30 June 2019 and can be provided as a rebate for services rendered within the financial year services as an ‘approval in principle’ application made a maximum of three months before the professional services are received.