This article is from the Australian Property Journal archive
THE Western Australian government will extend the land tax primary production business exemption to include certain contract farming business activities.
The current exemption requires the person carrying on the business on the land to be the owner of the animals. However, it is increasingly common practice in certain industries for secondary producers to contract farm the rearing of their animals.
The extension will now cater for primary producers who rear farm animals owned by secondary producers.
Effective from the 2018-19 assessment year, primary producers will be eligible for the exemption if they rear another person’s animals for the purpose of processing them or their produce for sale.
Furthermore, the government will introduce legislation to apply the exemption retrospectively.
The legislation will also contain reforms to the Duties Act family farm exemption to allow the progressive transition of a farm to a family member without significant transfer duty costs.
“The changes to the land tax exemption will be of particular benefit to poultry growers, amongst others, and will highlight the Government’s commitment to supporting the State’s farmers,” Finance Minister Ben Wyatt said.
Australian Property Journal
