Section 225 of the Duties Act 2001 (the Act) provides an exemption from duty where an interest in primary production land and associated farming equipment, is transferred directly to a relative of the transferor or to certain trusts or companies involving relatives of the transferor.
The family farm exemption also exempts duty on the transfer of shares in certain land-rich companies that own farming property.
The family farm exemption relates to land that:
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is used in connection with the business of primary production at the time of the transfer;
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will continue to be used in connection with the business of primary production after the transfer; and
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is classified as primary production land for land tax purposes.
The exemption is limited to certain transactions where a 'relative' relationship can be established between the transferor and the transferee. The exemption will not be applied if the transfer arises from a scheme to evade duty.
Eligibility
- The land must be used in connection with the business of primary production at the time of transfer and must continue to be used in connection with the business of primary production after the transfer.
- The land must be primary production land within the meaning of the Land Tax Act 2000.
- There must be a 'relative' relationship between the transferor and transferee.
How to apply
The documentation and evidence required to be submitted when lodging a transaction for assessment are:
To submit by mail, you will need:
- To complete forms, including;
- Original fully executed Transfer instrument.
- A copy of the agreement for sale (if one exists).
- A completed Intergenerational rural transfer exemption application. If there is more than one transferee, then each transferee must complete a separate form.
- Where the transferor or transferee is a company a copy of the share register of the company at the time of transfer.
- Where the transferor or transferee is a trustee, a copy of the document evidencing the trust together with any deeds of variation to that trust and proof of any duty having been paid in respect of all such documents is also required.
To submit via Tasmanian Revenue Online, you will need:
- A copy of the original Transfer instrument;
- A copy of the agreement for sale (if one exists).
- A completed Intergenerational rural transfer exemption application. If there is more than one transferee, then each transferee must complete a separate form.
- Where the transferor or transferee is a company a copy of the share register of the company at the time of transfer.
- Where the transferor or transferee is a trustee, a copy of the document evidencing the trust together with any deeds of variation to that trust and proof of any duty having been paid in respect of all such documents is also required.
Additional information
For further information, refer to: