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Qualifying sugarcane farmer

VEA 

Qualifying sugarcane farmer – 15 years continuous involvement

Subsection 5PAA(3) VEA

Qualifying sugarcane farmer – 20 years involvement

Subsection 5PAA(4) VEA

VEA  (go back)

A person is considered to be a qualifying sugarcane farmer if they have:

  • held an eligible interest in the farm for a continuous period of 15 years and the farm has for the last two years and since 29 April 2004 been a sugarcane farm, or
  • acquired an eligible interest in the sugarcane farm before 29 April 2004 and had an active involvement in the farm or the farming industry in Australia for any period or periods totalling at least 20 years.

During either period the person or their partner must have derived asignificant part of their income and contributed a significant part of their labour to the development of a sugarcane farm for at least the last two years.

Refer to subsections 5PAA(3) and 5PAA(4) for the full definition.

 

 

    VEA

Eligible interest in a sugarcane farm

Subsection 5PAA(5) VEA

Eligible interest in a relevant sugarcane farm asset

Subsection 5PAA(6) VEA

VEA  (go back)

A sugarcane farmer holds an eligible interest in a sugarcane farm if they:

  • have a legal estate or interest in the sugarcane farm, or
  • have a transferable legal right or a transferable licence to occupy the farm for a particular purpose of the sugarcane farm enterprise, or
  • have an equitable estate or interest in a farm, as mortgagor of the legal estate or interest in the farm; or
  • are a shareholder in a private company that owns or holds a pastoral lease over the farm land.

Refer to subsection 5PAA(5) for the full definition.

 

 

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.

 

 

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 .

 

 

According to subsection 49A(5): of the VEA, a person is deemed to have active involvement in a farm during a particular period if during that period the person:

  • Has contributed a significant part of his or her labour to the development of the farm; or
  • Has undertaken educational studies or training in a field that, in the opinion of the Commission, is relevant to the development or management of the farm enterprise.

 

 

For RAFS and RASF, a farmer or sugarcane farmer needs to derive a significant part of their income from their relevant farming enterprise in order to fulfil the requirements for a qualifying farmer and qualifying sugarcane farmer respectively.

When determining whether a person derived a significant part of their income from farming or sugarcane farming, gross (before expenses) income figures should be used. The general rule will be that at least half of the person's income was involved. The entire period is examined as a whole.

An indication of a family member's major source of income can be obtained from the farmer's tax return or the farm or sugarcane farm business tax return.

 

 

In considering whether a 'significant part' of the person's labour was related to the farm, the general rule will be that at least half of the person's working hours were involved. The entire period is examined as a whole.

RAFS example: A farmer purchased his farm in 1982. From 1993 to 1995 the farmer worked full time in off-farm employment, but continued to work on the farm after work and on weekends, and continued to receive a small income from his farm. For the remainder of the period, all of his labour was contributed to the farm. The farmer retired in 1998 and gifted the farm to his daughter. The farmer is a qualifying farmer because he has continuously owned a farm for at least 15 years, and during that time the significant part of his income, labour and capital was related to his farm.

RASF example: A sugarcane farmer purchased his sugarcane farm in 1988. From 1999 to 2001 the farmer worked full time in off-farm employment, but continued to work on the sugarcane farm after work and on weekends, and continued to receive a small income from his sugarcane farm. For the remainder of the period, all of his labour was contributed to the sugarcane farm. The sugarcane farmer retired in August 2004 and gifted the sugarcane farm to his daughter. The sugarcane farmer is a qualifying sugarcane farmer because he has continuously owned a sugarcane farm for at least 15 years, and during that time the significant part of his income, labour and capital was related to his sugarcane farm.

 

 

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