Posted by Hugh Melville, Solicitor
The Victorian Government is seeking to support the State's young farmers by introducing a unique stamp duty exemption/concession initiative for those buying their first farmland property. It is hoped that this will encourage young farmers to enter and stay in the primary production industry.
For contracts entered into from 1 July 2011 a full stamp duty exemption will be available to eligible young farmers for their first purchase of farmland worth up to $300,000 whilst a concession is available for purchases worth up to $400,000. Where a young farmer is purchasing several parcels of land, the value of at least one of the parcels cannot exceed $300,000.
To be eligible for the exemption or concession, applicants must satisfy the following criteria:
- the purchaser must be under 35 years of age at the date the contract is entered into
- the property being purchased must be farmland used, or intended to be used primarily for the business of primary production
- the property must be the young farmer's, or their partner's, first farmland property (a young farmer will still be eligible if they have previously owned non-farmland property)
- within 5 years after purchasing the land, the young farmer must be substantially engaged in a full-time capacity in the business of primary production of the type carried out on the farmland
The young farmer is free to choose whether they want to receive the Young Farmers Duty Exemption or concession or the Principal Place of Residence Concession.
Where a young farmer is purchasing farmland through a trust or company, there are some additional criteria:
- where farmland is purchased through company - the young farmer, or the young farmer and their partner, must hold all the shares in the company
- where farmland is purchased through a fixed or discretionary trust - the beneficiaries, or capital beneficiaries, must be limited to the young farmer, or the young farmer and their partner
- the farmland must be the entity's first farmland property
- within 5 years of purchasing the farmland, the principal business of the company or trust must be primary production of the type carried out on the farmland
For More Information
Professional advice should be sought where young farmers are purchasing farmland.
For further information, please contact Hugh Melville on (03) 5480 6344 or by email at hughm@colegal.com.au.
