THE State government has introduced the Revenue Laws Amendment Bill 2018 which it said delivers on its commitment to provide support for the WA agricultural industry.
The bill contains a package of amendments to simplify some of the complex transfer duty arrangements in place for farming properties and close loopholes to ensure exemptions and concessions are being applied correctly.
One of the most significant changes included will be to provide transfer duty exemptions for the progressive transfer of a farm from one family member to another – something that has been a concern for many farmers.
The government intends for the legislation to pass in the autumn session of 2019.
Finance Minister Ben Wyatt said the government was committed to supporting the industry.
“These are sensible changes that the agricultural industry has been asking for and are well overdue,” Mr Wyatt said.
Agriculture and Food Minister Alannah MacTiernan said the government was “listening to farmers and getting on with providing the relief that the agricultural industry has raised with governments for years”.
“This change will be a great boost for the institution of the family farm, which is the bedrock of agriculture in our State,” Ms MacTiernan said.
WAFarmers president Tony York said the organisation had identified taxes incurred during inter-generational transfer as a key election policy area.
“Succession planning is addressed frequently in the agricultural industry and the changes identified by the State government are welcomed by WAFarmers,” Mr York said.
“Taxes and duties incurred during succession planning are cumbersome and act as a disincentive for many to pass the farming business to the next generation sooner.
“The changes will encourage many to stay on the land working in the family business knowing the transfer will be smoother and the younger generation will not be forced to service a large tax bill at the time of taking over the business.
“WAFarmers will watch the bill pass through Parliament with keen interest as this will be welcomed by many farming businesses across the State.”
The Nationals WA finance spokesman Terry Redman said his party was yet to be briefed on the bill and hadn’t taken a formal position.
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“Having said that, the concerns outlined by the minister reflect the concerns of WA farming families and the arguments put to our MPs across the State,” Mr Redman said.
“On the surface the changes proposed appear sensible, however we will need to examine the bill in more detail before reaching a position.”
Agricultural Region MLC Rick Mazza said the issue had been raised with him on many occasions and was a concern that needed to be addressed.
“I haven’t seen the details but if the proposal provides succession planning relief for farming families then it will be most welcome,” Mr Mazza said.
