Australian farmers are breathing a sigh of relief the Treasury Laws Amendment (Better Targeted Superannuation Concessions and Other Measures) Bill 2023 – also known as the Super Tax –didn't pass the Senate in the last sitting week of the year.
The National Farmers' Federation similarly welcomed the passage of mergers reform and the updated Food and Grocery Code. NFF President David Jochinke said the sector had consistently raised serious concerns about the potential impact the Super Tax would have on hardworking farming families across the country.
"Thousands of farms across Australia are held in self-managed superannuation funds (SMSF) so they can be leased to the next generation, providing both retirement income and an opportunity for the next generation to take over the business."
Modeling, including from the University of Adelaide, has shown more than 3,500 SMSFs holding farming land would be impacted on Day 1 of this tax being implemented, and this number will only grow. Furthermore, small business owners will also be impacted with over 13,000 SMSFs holding business real property (i.e. small business assets).
"This tax spells disaster for the hardworking Aussie families who set up these funds in good faith, to give the next generation a leg up. We know farming and small businesses are the backbone of the Australian economy."
The NFF has been advocating on this issue for nearly two years and has been joined by a broad coalition of small business, accounting, and superannuation bodies – united in their concern, particularly regarding the taxation of unrealized capital gains.
"The NFF thanks the crossbench Senators, who have taken the time to understand the impacts of the Super Tax Bill and stood up for the interests of Aussie farmers and other small business owners.
"While this development is welcome, we note that the Bill remains in the Senate. Parliament at this stage is still due to sit next February with potentially several sitting weeks before the next federal election is called.
Hailing this a win for farmers, the NFF also highlighted farmers also took wins this week with the passing of the Treasury Laws Amendment (Fairer for Families and Farmers and Other Measures) Bill 2024 and the Treasury Laws Amendment (Mergers and Acquisitions Reform) Bill 2024. "While we do not always agree on everything, it is important to acknowledge those areas where the Government has made positive steps on behalf of farmers," Mr Jochinke said.
"These reforms for mergers will provide the transparency and rigor needed to ensure we don't see more anti-competitive transactions that disadvantage farmers.
"This brings Australia in line with other advanced economies and gives the Australian Competition and Consumer Commission (ACCC) more teeth." The NFF also welcomed amendments to the Food and Grocery Code to better protect growers. These include making the Code mandatory, increasing penalties for breaches, and better support for growers to raise issues with the ACCC.
For more information:
National Farmers' Federation
Tel: +61 (02) 6269 5666
Email: [email protected]
www.nff.org.au