Stamping Out Duty for Farming Families

Family-owned farming businesses will benefit from new laws passed in Parliament in May 2022 which introduced a stamp duty exemption for the transfer of primary production land to a company or other entity directed by a family member. Previously, only an individual member of the family was exempt from duty tax when buying/having land transferred. The practical effect of the State Revenue and Fines Legislation Amendment (Miscellaneous) Bill 2022 is that family farms that are structured using a trust or company are exempt from stamp duty upon a transfer of land.

There are of course some conditions with eligibility for an exemption being dependent on several factors, including:

• The land immediately prior to the transfer has been used for primary production in connection with a business carried on, whether alone or with others, by— (a) the transferee, or a member of the family of the transferee;

• The person transferring property is a family member of the transferee.

The transferee also needs to maintain control of the entity for a period of at least three years after purchase to ensure the integrity of the exemption. Where a transferor is an entity, they must have had that entitlement for at least three years before the transfer. 

There are rules around capital ownership within the entity which may affect the exemption.  We would be happy to look at your individual circumstances to determine whether these provisions will apply to your circumstances/