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Criteria Applicable to the Sugarcane Farm Transfer Transaction
Transfer must be a gift
The transfer of any relevant sugarcane farm assets must occur by way of gift.
Example of a sugarcane farm transfer that is not considered to be a gift
If the sugarcane farmer signs a contract to sell the sugarcane farm(s) to the younger generation, with the price to be paid by instalments, the amount of the unpaid instalments is not an asset that can be disregarded under RASF.
Transfer must include real property
The assets transferred must include real property (land).
Transfer of legal title required
The sugarcane farmer must transfer the legal title of their sugarcane farm land to the eligible descendant.
Transfer under general law system
Ownership of land under general law can only be proven by the 'chain of title', the group of documents that show changes in ownership for at least the last 30 years. Where the sugarcane farmer holds general law land, this land must have been converted to a Torrens title before the transfer of legal title is accepted for RASF purposes.
Transfer under Torrens system
A sugarcane farmer's ownership of land under the Torrens system can be shown on a certificate of title issued under the relevant State land law.
Verification of transfer of title
To confirm the transfer by the sugarcane farmer to the younger generation, a copy of the certificate of title of the relevant sugarcane farm land is required by DVA. Acceptable proof of ownership, and thus transfer, differ depending on whether the title for the land is held under the general law (old) system or the Torrens system.
According to subsection 5P(1) of the VEA, an eligible descendant in relation to a person means:
- a child, step child or adopted child of the person or of a partner of the person, or
- a descendant in direct line of a child described above, or
- any other person who, in the opinion of the [glossary:Commission:DEF/Commission/Repatriation Commission], should be treated for the purposes of this definition as a person described in the above paragraph.
According to subsection 5P(1) of the VEA, relevant State land law means any of the following laws:
- The Real Property Act 1900 of New South Wales;
- The Transfer of Land Act 1958 of Victoria;
- The Land Title Act 1994 of Queensland;
- The Transfer of Land Act 1893 of Western Australia;
- The Real Property Act 1886 of South Australia;
- The Land Titles Act 1980 of Tasmania;
- The Real Property Act 1925 of the Australian Capital Territory;
- The Real Property Act of the Northern Territory;
- A law of a Territory (other than the Australian Capital Territory or the Nothern Territory) making similar provision for the registration of dealings with land as the laws mentioned above.
The Department of Veterans' Affairs.