Farm leaders have urged the federal government to consider the unique circumstances of family farming businesses in changes to superannuation laws that passed the House of Representatives this week.
NSW Farmers Business Economics and Trade Committee chair John Lowe said the changes to the Treasury Laws were set to impose new taxes on unrealised gains in superannuation holdings, including family farms – meaning farmers could be taxed for income they will never see.
"This law is not going to affect the people with hundreds of millions of dollars in their superannuation accounts, but rather the hard-working Australians who own their businesses or farm assets in structures such as self-managed superannuation funds," Mr Lowe said.
"Self-managed superannuation funds are a common tool farmers use to manage their farms and aid business succession, and now, their farms are at risk because the government wants to rush through new tax laws without considering how agriculture operates."
As several accounting bodies and financial associations also raised their concerns around the bill, Mr Lowe said it was critical that any changes made to tax laws did not place unfair financial pressure on family farms among other small, family-owned businesses.
"These proposed changes could well force many farmers to sell the farm they operate or lease to their children, unless they're able to take out even more loans to try and meet new tax obligations," Mr Lowe said.
"NSW Farmers supports sensible amendments to super – not taxes that will enable the super-rich to continue unaffected, while the small businesses and farm family businesses suffer.
"Aussie families and young Aussie farmers all deserve to be able to run their own businesses without crippling bureaucracy and taxes and there's no doubt we need our family farms to stay if we want to have our own, homegrown food and fibre."
For more information:
Eliza Fessey
NSW Farmers
Level 4, 154 Pacific Highway
St Leonards NSW 2065
Tel: +1 0427 411 220
Email: [email protected]
Website: www.nswfarmers.org.au