Australian farmers have claimed a monumental win today, with the Federal Government set to revise its proposed 'Super Tax' following strong and united advocacy from the National Farmers' Federation (NFF) and its members.
NFF President David Jochinke said the Government's decision to revisit the tax was the right one. The tax will now only apply to realised earnings and the superannuation balance thresholds will be indexed.
"The policy would have had serious unintended consequences for thousands of family farms and small businesses who hold property in Self-Managed Superannuation Funds (SMSFs) as part of their succession plans," Mr Jochinke said.
"This is a monumental win for farmers, small business, and commonsense.
"From the beginning, we've said this policy of taxing unrealised gains risked family farm businesses. The Government has listened, and we thank them for that.
"Farmers can now plan for the future with confidence, knowing their hard work and succession plans are safe from this unfair tax."
The NFF has been campaigning on the issue for nearly two years, leading a coalition from the small and family business sector concerned about the taxation of unrealised gains.
Quotes attributable to GrainGrowers Chair, Rhys Turton
"Modelling has found more than 3,500 self-managed super funds holding farming land would have been impacted from day one, with a further 14,000 at risk as property values increased.
"Today's decision was the right one. We now look forward to continuing to work constructively with the Government on fair, practical policies that support long-term investment and succession planning for farmers."
Quotes attributable to NSW Farmers President Xavier Martin
"This is a huge relief for farming families who've been staring down the barrel of a tax that never should've applied to them in the first place. The Government's rethink shows they've listened to reason.
"Farmers plan long term, in decades, not financial years, and this decision gives them the confidence to keep building farm businesses they can succeed for the next generation."
Quotes attributable to Australian Dairy Farmers President, Ben Bennett
"This outcome shows what can be achieved when agriculture stands together and sticks to the facts. It's a great result for farmers and small businesses right across the country.
"The Government's willingness to listen and act means more certainty for family-owned farms to invest and plan for the future – that means to keep growing, keep employing and keep investing in their local communities."
