NSW Farmers has welcomed the Federal Government’s decision to expand access to a key Capital Gains Tax (CGT) concession by lifting the small business threshold to $10 million – a longstanding NSW Farmers policy position.
NSW Farmers President Xavier Martin said the move was a welcome signal the Government had been listening to sector concerns by enabling them to access concessional CGT rates if their turnover is less than $10 million or their net assets were under $6m.
“A lot of NSW farmers will welcome this with considerable relief. Updating the threshold recognises the scale, cost and capital intensity of agriculture today,” Mr Martin said.
“CGT doesn’t land in isolation – it lands on top of fuel, fertiliser, finance, regulatory and wage pressures already compressing farm businesses. This change matters.”
Mr Martin said the critical test for the full package of reforms remained intergenerational farm transfer, with the minimum 30% tax on inflation-adjusted gains still an issue for some farms looking to pass on the keys after 1 July 2027.
“Farming is a long-term, intergenerational business. The question is whether these changes make it easier to pass a farm to the next generation – that’s the measure we’ll apply before congratulating the Government,” he said.
NSW Farmers acknowledged the Treasurer’s commitment to consult with small businesses on the final design of the reforms and would engage constructively through that process. “This is what constructive engagement looks like – and we intend to hold the Government to that standard as the detail is worked through.”