The NSW government has passed new laws that will see stamp duty exemptions extended on the transfer of primary production land to a company directed by a family member.
Previously, NSW duties concessions allowed for family farm transfers to be exempt from stamp duty when the transfer of the primary product land was between family members. This aimed to support the retirement of older members of a family by passing the land on to a younger generation stamp duty-free.
However, the exemption only allowed the original owner of the property to be a company controlled by the family and for the transfer to go to an individual family member.
Given that many family farms have a business structure that uses a partnership, trust or company – and few are owned by individuals in name – this exemption was not reportedly available to many farmers.
As such, the amended law will now allow the exemption for family farm transfers to apply where the land is transferred to company or other entity, so long as that entity is directed by a family member.
It is estimated that nearly 150,000 primary production properties in NSW may be eligible for stamp duty exemptions under the rule change. Read on here: https://loom.ly/QcqkFXs
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0421 505 258 I ashleigh_pakis@panachefinancial.com.au