📷Photo: Australia’s peak farming body is calling on Parliament to modernise outdated tax settings to protect family farms and intergenerational succession. File picture.
Australia’s peak farm body is calling on the Federal Government to safeguard farm businesses by lifting outdated small business Capital Gains Tax concession eligibility thresholds as legislation is introduced to Parliament.
The National Farmers’ Federation said farmers across the country were united in their concerns that family farm businesses could be unintentionally captured by reforms designed for other sectors.
NFF President Hamish McIntyre said while constructive engagement with the Government was ongoing, farmers were still waiting for certainty that family farms would not be caught in the crossfire of broader tax reform.
“We need clear assurance from the Government that it understands the real-world impacts on farm businesses and will work with industry to put appropriate safeguards in place,” Mr McIntyre said.
“That includes seriously considering long-overdue changes to CGT small business concession thresholds, which no longer reflect the scale or reality of modern farming.”
“This is not about special treatment. It is about making sure family farms are not collateral damage in tax reform designed for an entirely different operating environment.”
“The Government cannot afford to get this wrong. If these settings are not fit for purpose, we risk decreased investment, delayed succession, increased debt burdens and, in some cases, forced sales of farmland to meet increased tax liabilities.”
The NFF continues to call for practical reforms to modernise eligibility for small business CGT concessions, which have remained unchanged since 2007 despite significant increases in farm values and operating costs.
Victorian grain and sheep farmer Ryan Milgate said the proposed changes were creating fresh uncertainty for farming families managing intergenerational succession planning.
“When the current thresholds were introduced, our farm would have qualified,” Mr Milgate said.
“Since then, land values and the scale of operating a modern farm have changed significantly, even though farming income remains seasonal, unpredictable and heavily impacted by weather and commodity prices.”
“People see land value and assume farming families are sitting on huge wealth, but farming doesn’t work like that. You can be land-rich and cash-poor at the same time.”
“The concern is these changes could force families to delay succession, take on more debt or even sell parts of the farm just to manage the tax impact.”
Mr McIntyre said the NFF would continue working constructively with the Government and had also been engaging with the Coalition, The Greens, One Nation and the crossbench.
“It’s so important we get this reform right. The last thing this country should be doing is making it harder for the next generation to stay on the land.”
The NFF Members’ Council passed a resolution on May 22 calling on the Australian Government to safeguard farm businesses from unintended consequences arising from proposed changes to Capital Gains Tax and their impact on intergenerational farm succession.
The NFF has supported several proposed reforms, including exempting primary production income from the minimum tax on discretionary trusts, making the Instant Asset Write-Off permanent, and reintroducing a permanent loss carry-back mechanism.
While the NFF welcomed the Government’s decision to retain the small business CGT concessions, it maintains the turnover and net asset thresholds are badly outdated and no longer align with the operational reality of family farms in 2026.
Family farms often represent a lifetime of investment built over generations to support retirement and provide succession opportunities for children and grandchildren to continue farming.
Images of NFF President Hamish McIntyre are available separately.