NSW Farmers President Xavier Martin is demanding that the Federal Government to provide immediate certainty on proposed taxation changes, warning the reforms will stifle farm succession and investment.
“The Federal Government’s proposed tax changes would put family farm succession and farm startups at risk and discourage investment across regional NSW,” Mr Martin said.
“Many family farms have held land for generations. If family farmland or productive water is caught by the new rules, it risks increasing the tax burden at the worst possible time.”
Mr Martin said the proposed minimum 30 per cent tax ignores the reality that farm incomes are cyclical, and will penalise farmers who sell land or assets in a low income year due to drought, flood or forced restructuring.
He also warned the requirement to establish a value as at 1 July 2027 is unworkable, particularly where farms include multiple parcels, mixed land uses, major improvements and structures such as family trusts and partnerships.
“The Government’s decision to exempt primary production income from the proposed 30 per cent minimum tax on discretionary trusts is a step in the right direction,” Mr Martin said. “But farmers need a clear, workable definition of ‘primary production income’ that reflects modern farm businesses.”
NSW Farmers is calling on the Federal Government to protect family farms and mitigate unintended consequences for food and fibre production by updating outdated small business CGT thresholds. Those caps were set in 2007. They don’t reflect the reality of farming in 2026.”