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Application of Assets Limit

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Net assets limit of $500,000 applies

    

VEA ?

Requirement for qualifying sugarcane farmer

Section 49Q(1) VEA

Requirement for former partner

Section 49Q(2) VEA

VEA ? (go back)

Under RASF, net sugarcane farm assets worth up to $500,000 can be transferred without being assessed under the deprivation provisions. The limit is a total limit for the person and applies to all interests. If a person has an interest in two sugarcane farming enterprises, the first valued at $350,000 and the second at $450,000, the person has total sugarcane farming interests of $800,000 and does not qualify under RASF.    

More ?

Deprivation of income and assets

Chapter 9.6

More ? (go back)

Transfer of sugarcane farms valued over $500,000

    

VEA ?

Value of farm reduced by value of transferee's interest

Section 49R(3) VEA

VEA ? (go back)

Sugarcane farm assets valued over $500,000 can be transferred under RASF provided the eligible descendant already has an interest in the sugarcane farm. In these cases, the total value of the sugarcane farm or farms being divested, less the value of the descendant's estate or interest in the sugarcane farm or farms, cannot exceed $500,000.

Example of transfer where descendant holds an interest

A retiring sugarcane farmer is involved in a sugarcane farm enterprise valued at $600,000. His son is a partner, holding a one-third share in the property. The value of the sugarcane farm assets being divested is $600,000 less the son's share of $200,000 = $400,000. Therefore the retiring sugarcane farmer is able to access RASF.


According to subsection 5PAA(1) of the VEA, a sugarcane farm is a farm that is used predominantly for the purposes of a sugarcane farm enterprise .

 

 

When making a decision whether a course of conduct warrants application of the deprivation provisions, reference should be made to section 48 of the VEA in relation to income and section 52E of the VEA in respect of assets.

 

 

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 5PAA(1) of the VEA, a sugarcane farm enterprise is a farm enterprise where:

  • a majority of the enterprise is undertaken for the purposes of farming commercial quantities of cane sugar, or
  • a significant proportion of the enterprise is undertaken for the purposes of growing commercial quantities of cane sugar, and the Commission has determined that there are special reasons why the farm enterprise should be treated as a sugarcane farm enterprise.

For the full definition, refer to subsection 5PAA(1).