AgForce welcomes "positive short term measures"

“The Palaszczuk Government is focused on dealing with the legacy issues in Queensland agriculture associated with rural debt, on stimulating renewal and investing for the future,” the Treasurer said. 

“A key element of the package is building capacity and that is why I am announcing the removal of transfer duty on all familial property transfers for farms.

“I have listened to calls from farming families across the state, and to lobbying from the Agriculture Minister, that the removal of stamp duty will make a tangible difference to succession and renewal.

“It’s a measure, part of a Rural Assistance Package worth $36.044 million that brings Queensland into line with other States and Territories and will make it easier for sons and daughters to buy out their parents who are seeking to retire.

“If the family farm property is valued at $2.5 million, and the purchaser pays that amount, there is a saving of transfer duty of $124,275.”

AgForce CEO Charles Burke said the new stamp duty exemption for intergenerational transfers of farm businesses was something AgForce had been seeking for many years and would assist the next generation of farmers enter the industry.

He welcomed many “positive short term financial measures” in today’s budget but warned that the “potential negative impacts of this Government's legislative policies could far outweigh any of those benefits”.

The Treasurer also announced new grants for businesses, including to seek advice on succession planning, and improved accessibility to the First Start Loans available through the Queensland Rural Adjustment Authority (QRAA).

“The Rural Assistance Package is a whole of government response aimed at reducing financial stress and improving financial sustainability within the rural community, particularly in relation to succession and renewal within the family farming sector,” he said.

The Treasurer said the Package had been informed by and built on proposals flagged by the Rural Debt and Drought Taskforce.

Agriculture Minister Leanne Donaldson said the Palaszczuk Government recognised the serious problems caused by the drought, especially in the west of the state where some producers had been in in drought for more than four years.

“Our response in this Budget is a series of initiatives with $77.9 million of funding for the Queensland Government 2016-17 Drought Assistance Package and Rural Assistance Package,” the Minister said.

“We will  also be providing up to $1 million worth of grants per annum over three years for the sector to seek advice on farm financial management, climate risk mitigation, succession planning and/or to undertake multi-peril insurance assessments.

“To help protect our farmers, the Government will be introducing new Farm Debt Mediation legislation to require lenders to conduct a formal mediation process.

“Having a legislated mediation process before bank enforcement action can deliver more positive outcomes for all parties.”

Support measures include providing additional support for rural school students in drought affected communities at a cost of $3.7 million over three years.

Minister Donaldson also flagged changes to QRAA to improve the Queensland Government’s concessional loan program.

“QRAA is to be reconstituted to become the Queensland Rural and Industry Development Authority (QRIDA) with an expanded Board charter and improved flexibility,” the Minister said

“In addition, the Primary Industry Productivity Enhancement Scheme (PIPES) loans will be enhanced to reflect the higher capital requirements in agriculture.

“This includes doubling the Sustainability Loans for up to $1.3 million and increasing the First Start Loans to up to $2 million (up from $650,000).

“We will also investigate widening the scope of PIPES to the post farm gate sector.

Mr Burke said new grants of up to $2500 for primary producers to get advice on climate risks, financial management, succession planning and multi-peril crop insurance options, as well as the additional education assistance for children in drought affected areas were both initiatives AgForce had championed. 

"AgForce also called for improved access to the concessional loans program administered by QRAA so we welcome the promised improved flexibility and increases in available finance."

Mr Burke said major new changes to biosecurity laws taking effect on 1 July would shift costs and responsibilities on to primary producers, but there was not enough focus on supporting producers to transition to the new model.

"While AgForce always welcomes any new funding to prepare for and manage biosecurity risks, we are concerned the money will be spread too thin and that primary producers weren't adequately aware of the changes yet," he said.

Mr Burke said the $15 million to fix mobile phone black spots should help leverage investment from the Federal Government and telecommunications providers.

"Having access to fast, reliable and affordable mobile phone and internet services is just so important for business, community safety and social connections, so this investment from the State Government on top of the Commonwealth Government's contribution is welcome," he said.

Mr Burke said while the Palaszczuk Government was talking up policies to support regional job creation, their plan to introduce tougher vegetation management laws would drive up food prices, shut down regional development and cost jobs.

"This State Government's unfair over-reliance on regulation to manage farmers' land and water again shines through in this Budget with $7.8 million to arm the tree police with more tools and $1.5 million to re-introduce a rebadged restrictive wild rivers initiative," he said.