Requirement for Farmer to Hold Qualifying Interest | Compensation and Support Policy Library, Part 5 Income Support Allowances and Benefits, 5.5 Retirement Assistance for Farmers Scheme (RAFS), 5.5.4 Requirements Applicable to Farmer or Former Partner

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Requirement for Farmer to Hold Qualifying Interest

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Definition of qualifying interest in a farm

VEA?

For the purposes of RAFS, a farmer held a qualifying interest in a farm if they:

  • had legal ownership of the farm land;
  • held a pastoral lease over the farm land;
  • held an equitable interest in general law land that is mortgaged; or
  • were a sharefarmer in a private company that owned or held a pastoral lease over the farm land.
Sharefarmers who did not own real land

VEA?

Sharefarmers who did not own real land and did not have a qualifying interest were unable to participate in RAFS.

Occupation of property on short-term lease

Farmers who occupied property on a short-term lease rather than a pastoral lease were unable to participate in RAFS because they did not have a qualifying interest in the farm.

Trustee of trust

A trustee of a trust has a legal interest in the trust's assets. Accordingly, where a farm was owned by a trust and the farmer was the trustee of that trust, he or she had a qualifying interest in the farm. This included situations where the farmer was the trustee of an estate, for example where a widow/widower was trustee of the deceased partner's will.

Shareholders in private trustee companies

Shareholders in private trustee companies that owned a farm had a qualifying interest.


According to subsection 5P(1) of the VEA, a farm means any land that is used:

  • For the purposes of a farm enterprise; or
  • In connection with a farm enterprise.