Treasurer Pitt listens to agriculture's concerns

“At the 2016-17 Budget I responded to findings by the Rural Debt and Drought Task Force as well as calls from peak groups, and farming families across the state by announcing the removal of the requirement for transfers to be by way of gift to be eligible for the transfer duty concession for familial land transfers for farms,” Mr Pitt said.

“I have also been approached by the Queensland Farmers Federation and Cotton Australia seeking relief for other types of property in familial transfers such as water rights.

“I have listened to the concerns of the agriculture sector and I have acted to ensure that all property used to carry on family farm businesses can now access the transfer duty relief for familial transfers.

“For some farms with water-intensive crops, such as cotton, the water rights can be worth more than the land.

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

“This extra measure, extends the work of the $36 million Rural Assistance Package announced at the State Budget.

“It makes it easier for sons or daughters to buy out their farming parents who are seeking to retire and helps underpin the viability of the family farm,” Mr Pitt said.

The Queensland Farmers’ Federation (QFF) has welcomed the move with president Stuart Armitage saying water assets were an integral and valuable part of irrigation-based businesses.

“QFF thanks the state government for this significant policy change,” Mr Armitage said.

“We also acknowledge the government’s willingness to engage with us and others in the rural sector to deliver this positive outcome.”

QFF Chief Executive Office Travis Tobin said this package of stamp duty changes demonstrates that it is possible to get positive and important reforms with modest levels of government investment when applied in the right areas.

“Water assets are an integral and valuable part of irrigation businesses. The value of these assets sometimes exceed the value of the land, so having them included in the succession stamp duty exemptions is important and commonsense,” Mr Tobin said.

“One of the reasons for the transfer concession was to bring Queensland into line with other states; the inclusion of water entitlements and other assets delivers this consistency for farmers.

“QFF acknowledge and thank the state government for its considered policy positions towards family farm succession challenges and for engaging with industry to rectify this oversight.

“Stamp duty will no longer be a financial barrier for the next generation of farmers and irrigators entering our growing sector.”

Queensland's cotton industry has welcomed the State Government's commitment to include water assets in the stamp duty relief measures previously announced in the July 2016 State Budget.

Cotton Australia General Manager, Michael Murray, says the Government has moved quickly to rectify something that was clearly an anomaly.

"Water assets are an inseparable part of irrigating farm businesses, and contribute considerably to the real value of the overall farming enterprise," Mr Murray says.

"We welcome the inclusion of water assets in the stamp duty exemptions, which removes a significant impediment to the inter-generational transfer of property."

"Succession planning is an important concern for many family farmers in Queensland, and the knowledge that stamp duty on water will no longer apply to the transfer of properties to the next generation will be a great relief to many cotton growers."

"We thank the Government for working with the agriculture industry to achieve this common sense outcome."

The Office of State Revenue is to publish a ruling setting out the terms of the new arrangement, which will apply retrospectively to farm business transfers from 12 October, 2016.

​Acting Minister for Agriculture Dr Anthony Lynham said: “I know this announcement will be welcomed by producers throughout Queensland.

“This is another Palaszczuk Labor commitment to assist younger primary producers stay on the land.

“Minister Bill Byrne heard from producers and peak bodies first-hand how the stamp duty exemption would make a real difference for those buying the farm off mum and dad and this further announcement means that more monies saved in stamp duty can be invested in property.”

Mr Pitt said the extra measures would take effect from 12 October this year.

He said the Office of State Revenue would shortly publish a ruling setting out the terms of how the administrative arrangement applies to these transfers.

It is intended that the Government will move amendments to give retrospective legislative effect to the administrative arrangement in the near future.