Under section 71CC of the Stamp Duties Act, primary producers can transfer primary production land between family members and their trusts without stamp duty being levied. However, the transferors and transferees had to be individuals or trusts set up for individuals. But that is set to change following an announcement in the State budget handed down yesterday.
A proposed amendment to Section 71CC will allow a company to transfer or receive primary production land under section 71CC without stamp duty being payable, so long as all shareholders are family members and at least one shareholder and the transferee comply with the usual Section 71CC requirements. This is great news for primary producers with farm land held in companies.
Together with the small business capital gains tax concessions, and the new capital gains tax reconstruction rollover relief, primary producers will now be able to restructure their businesses without any tax consequences. There are still many technical requirements that need to be complied with so tread cautiously. Our experienced Agri lawyers are able to help you navigate through the process.
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This article was written by Partner, Joe Anderson.