December 16, 2016
Farming families who transfer water rights within a family will be relieved of paying transfer duty.
Treasurer Curtis Pitt announced the expansion of transfer duty relief on Friday.
In this year’s State Budget, the Queensland Government abolished stamp duty on inter-generational farm transfers, something that already applies in most other states.
On Friday, Mr Pitt said that following representations by the Queensland Farmers Federation and Cotton Australia, the Government had agreed to extend the concession to water rights as well.
“I have listened to the concerns of the agriculture sector and I have acted to ensure that all property used to carry on family farm businesses can now access the transfer duty relief for familial transfers,” Mr Pitt said.
“For some farms with water-intensive crops, such as cotton, the water rights can be worth more than the land.
“This extra measure, extends the work of the $36 million Rural Assistance Package announced at the State Budget.
“It makes it easier for sons or daughters to buy out their farming parents who are seeking to retire and helps underpin the viability of the family farm.”
The Queensland Farmers’ Federation (QFF) has welcomed the move with president Stuart Armitage saying water assets were an integral and valuable part of irrigation-based businesses.
“The QFF thanks the state government for this significant policy change,” Mr Armitage said.
Cotton Australia General Manager Michael Murray also welcomed the changes to water assets, saying that for cotton farmers water assets often made up 50-80 per cent of overall farm assets.
“The inclusion of water assets will be welcomed by all cotton farmers and will greatly assist with family succession,” he said.
Mr Pitt said the extra measures would take effect from October 12 this year.
He said the Office of State Revenue would publish a ruling in the near future setting out the terms of how the administrative arrangement applies to these transfers.
The Government will move amendments to give retrospective legislative effect to the arrangement in the near future.
