Family Farm Transfer - Stamp Duty Exemption

January 23, 2012 | Posted by Ron Waters

The transfer or sale of the Family Farm to the next generation or to family members generally may be exempted from stamp duty. Where a property is used for primary production a full stamp duty exemption is available for transfers to certain relatives or the company and trust entities used by those relatives.

This exemption applies where the land being sold or transferred is solely used for primary production which is widely defined in the relevant legislation. "Primary production" includes the cultivation of land for the purpose of selling produce, keeping animals or poultry for the purpose of selling them, keeping bees for the purpose of selling their honey, commercial fishing operations or the cultivating or propagating for sale of plants, seedlings, mushrooms or orchids.

The definition of "relative" is also wide and includes a parent, brother, sister, child, grandchild, great grandchild, uncle, aunt, niece or nephew of the owner. It also allows for the exemption to apply in event that the farming operation is conducted through a family company or trust provided that the shareholding of the company or beneficiaries of the trust fall within the appropriate class of relatives or charity as defined in the legislation.

The value of the property is not relevant and the exemption is determined by relationship and the nature of the use of the property. An exemption is obtained by correctly completing the appropriate documentation and lodging it at the time of the transfer or sale with the State Revenue Office. Should you require any assistance or advice in relation to these matters please do not hesitate to contact Robertson Hyetts.  We can undertake this work on your behalf.

If you would like further information please contact Ron Waters.

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