The Family Farm Exemption allows landowners in South Australia (who meet the eligibility criteria) to transfer land used wholly or mainly for the business of primary production between certain relatives and/ or their trustees without the imposition of stamp duty. This legislation was introduced to encourage younger family members to stay on the farm and continue running the business.
While stamp duty relief may be available on eligible Family Farm transfers, LTO transfer fees will still apply.
The Australian Government is not responsible for the governance of stamp duty. It is legislated by each state and territory and therefore it is important to highlight that the laws, with respect to stamp duty exemptions, differ between each jurisdiction.
For the purpose of the exemption, the business of primary production in South Australia generally includes:
Agriculture, pasturage, horticulture, viticulture, apiculture, poultry farming, dairy farming, forestry or any other business consisting of the cultivation of soils, the gathering in of crops, the rearing of livestock or the propagation and harvesting of fish or other aquatic organisms.
The Family Farm Exemption is generally made available on a transfer between the landowner and their relatives, which can include the following conveyances:
The following are some examples of relative (family member) relationships which include (but are not limited to):
Note that in some jurisdictions (including South Australia) the relative is required to have worked in the landowner’s business. Refer below for further details.
If a transferor or transferee is a trustee of a Family Discretionary Trust, the beneficiaries of the trust must be limited to natural persons who are relatives and part of a particular family group.
If a transferor or transferee is a trustee of a Unit Trust, the unit holders of the unit trust must be limited to natural persons who are relatives and part of a particular family group.
If a transferor or transferee is a trustee of a Superannuation Fund, the members of the fund must be limited to natural persons who are relatives and part of a particular family group.
Applicants must complete a statutory declaration form to be submitted at the time of conveyance and provide evidence to Revenue SA that the exemption criteria have been met.
If you require assistance in making an application or would like to discuss the exemption further, please contact George Papanicolaou or your Nexia Edwards Marshall Adviser.
The material contained in this publication is for general information purposes only and does not constitute professional advice or recommendation from Nexia Edwards Marshall. Regarding any situation or circumstance, specific professional advice should be sought on any particular matter by contacting your Nexia Edwards Marshall Adviser.