First farmland property and disqualifying interests
The property purchased must be the first farmland property of the farmer or the farmer’s partner. Accordingly, if they have previously owned an estate in fee simple in farmland they will be ineligible for the exemption or concession. This includes where the young farmer or their partner is or was:
- A shareholder of a company* that owned or previously owned farmland.
- A beneficiary of a trust* that owned or previously owned farmland.
*This includes when a young farmer and/or their partner were a shareholder of a company or beneficiary of a trust set up by their parents.
Farmland
Land used, or intended to be used, primarily for the business of primary production.
Young farmer
A natural person (not a company or trust) who is:
- under 35 years of age at the date of the contract, and
- carrying on, or intends to carry on, a business of primary production in relation to dutiable property(s) that satisfies the requirements of this exemption and concession.
Partner
The person's spouse or domestic partner.
Young farmer business entity
This means a:
- trustee for a young farmer, or
- company (not acting in the capacity of a trustee under a trust) all the shares in which are owned by the young farmer, or the young farmer and theyoung farmer’s partner, or
- trustee under a discretionary trust, the capital beneficiaries of which are limited to a young farmer, or the young farmer and the young farmer’spartner, or
- trustee under a fixed trust, the beneficiaries of which are limited to a young farmer, or the young farmer and the young farmer’s partner.
Primary production
Means the use of land primarily for:
- Cultivation for the purpose of selling the produce of cultivation (whether in a natural, processed or converted state).
- The maintenance of animals or poultry for the purpose of selling them or their natural increase or bodily produce.
- The keeping of bees for the purpose of selling their honey.
- Commercial fishing, including the preparation for commercial fishing or the storage or preservation of fish or fishing gear.
- The cultivation or propagation for sale of plants, seedlings, mushrooms or orchids.
Capital beneficiary of a discretionary trust
Means a person, or a member of a class of person, in whom, by the terms of the trust, the whole or any part of the capital of the trust estate may be vested or remain vested in the event:
- of the exercise of a power or discretion in favour of the person (whether or not that power is presently exercisable), or
- that a discretion conferred under the trust is not exercised.
‘Claw back’ provision
It is the responsibility of the young farmer or young farmer business entity to provide the Commissioner with written notice within 30 days of becoming aware of any circumstances that may result in the primary production requirement not being complied with.
A failure of the young farmer or young farmer business entity to comply with the legislative requirements in relation to the above benefit does not affect the Commissioner's ability to reassess duty.
More information about the young farmer duty exemption and concession is available on our website.