Transfer duty removal having desired effect

Transfer duty removal having desired effect


Aa

Industry leaders are crediting the abolition of the transfer duty on family farms with some of the movement in the rural property market taking place, and enabling inter-generational land transitions.

Aa
The removal of stamp duty is beginning to bear fruit in the property market, according to industry experts.

The removal of stamp duty is beginning to bear fruit in the property market, according to industry experts.

Industry leaders are crediting the abolition of the transfer duty on family farms with some of the movement in the rural property market taking place, and enabling inter-generational land transitions.

Herron Todd White valuer Roger Hill said he was seeing an increase in succession plan-related transactions of late.

“Given the increased property market sentiment, families are trying to get these transactions completed before the land values increase with the cycle so that the next generation get the benefit of value increases,” he said.

“Cattle prices are good; confidence within the younger generation is positive.

“Seasonal conditions have improved, the younger generation is not taking on a drought-affected property where they would struggle to make repayments, and the ageing grazier demographic is being changed by this phase in ownership change.”

One barrier he saw was the inability of familials to sell to a company or a trust, only to a person, which he said was denying them the opportunity to instill good asset protection.

“It’s the one limiting factor denying prudent structuring,” he said.

AgForce vice president Georgie Somerset said the exemption of inter-generational transfers would really support successful planning and enable not just the next generation to get involved, but the current generation to enjoy the fruits of their labour.

“This is a first step. We say, let’s keep working on it, and keep improving.”

QRAA CEO Cam McMillan said not enough had been made of the removal.

“It was a barrier to transitioning and now it’s not there,” he said. “Colleagues at Treasury are seeing early evidence of people making steps.”

He also said First Start loans were going out to an average age of 30.

“We’re pretty proud of that and we’d like to get it down more.

“Our evidence is that transitions are happening earlier and earlier. That’s got to be good for agriculture.”

Aa

From the front page

Sponsored by