Farm leaders have urged the federal government to consider theunique circumstances of family farming businesses in changes to superannuationlaws that passed the House of Representatives this week.
NSW Farmers Business Economics and Trade Committee chair John Lowe said thechanges to the Treasury Laws were set to impose new taxes on unrealised gainsin superannuation holdings, including family farms – meaningfarmers could be taxed for income they will never see.
“This law is not going to affect the people with hundreds of millions ofdollars in their superannuation accounts, but rather the hard-workingAustralians who own their businesses or farm assets in structures such asself-managed superannuation funds,” Mr Lowe said.
“Self-managed superannuation funds are a common tool farmers use to managetheir farms and aid business succession, and now, their farms are at riskbecause the government wants to rush through new tax laws without consideringhow agriculture operates.”
As several accounting bodies and financial associations also raised theirconcerns around the bill, Mr Lowe said it was critical that any changes made totax laws did not place unfair financial pressure on family farms among othersmall, family-owned businesses.
“These proposed changes could well force many farmers to sell the farm theyoperate or lease to their children, unless they’re able to take out even moreloans to try and meet new tax obligations,” Mr Lowe said.
“NSW Farmers supports sensible amendments to super – not taxes that will enablethe super-rich to continue unaffected, while the small businesses and farmfamily businesses suffer.
“Aussie families and young Aussie farmers all deserve to be able to run theirown businesses without crippling bureaucracy and taxes and there’s no doubt weneed our family farms to stay if we want to have our own, homegrown food andfibre.”
