Recently there have been a few changes by the Queensland Government aimed at helping farmers. To summarise just a few:
- QRAA increase the size of loans available to producers to improve productivity and sustainability. The maximum loan amount has risen from $650,000 to $1.3 million for a Sustainability loan and from $650,000 up to $2 million for a First Start loan.
The Government claims the increases reflect the higher capital requirements in the industry. To date, 54% of approved applications went to the beef cattle industry and 18% to sugar producers but it is available to all farmers.
The loans can be for a period of 20 years and come with a fixed interest rate ranging from 3.25% for 1 year to 3.22% for 5 years. Other conditions still apply.
- The Government has broadened the exemption on transfer duty (stamp duty) for the transfer of land and other assets used in carrying on a business of primary production where that land is being transferred to a family member.
Previously if an amount of consideration (purchase price) was paid, or debt accompanied the transfer, the consideration or debt was deemed to be the ‘dutiable value’ and stamp duty would be paid on that amount.
The change means that the transaction will now be stamp duty free, even if the receiving family member pays some money for the land. This will make the outcome of any family succession plan much more favourable.
If you think you could benefit from either of these please contact us to discuss the options that are open to you.
By: Allan Vickers