Queensland farm owners looking to retire or transfer the ownership of their farms are now given more opportunity to take advantage of the stamp duty concession available for gifting of farms between family members.
In the past, farm owners could gift their farms without attracting stamp duty costs to their lineal descendants only (children and grandchildren). However, for many agricultural families, this concession was often unrewarding as they looked to transfer ownership among other family members.
The good news is that stamp duty fees are now removed on ownership transfers to a wider-range of family members, including spouses, grandparents, siblings, aunts, uncles, nieces and nephews, which means a greater flexibility in succession planning for primary production businesses.
It is important to note that as per the previous legislation, the benefit is only available if the farm is being gifted to the family member. If consideration or payment is provided for the transfer, including assuming a debt, stamp duty will still be payable on the debt value or any consideration paid.
If you are restructuring your farm, or gifting part, or all of your farm to a family member, it is important to obtain appropriate advice from your accountant and lawyer to ensure you benefit from this new legislation.