5.6.12 Pension Bonus and Retirement Assistance for Sugarcane Farmers (RASF)

Last amended: 22 April 2014

Pension bonus impact

The pension bonus scheme is designed to encourage a person to defer retirement. Contrary to this, Retirement Assistance for Sugarcane Farmers (RASF) encourages sugarcane farmers to retire. Special rules apply to sugarcane farmers registered under the pension bonus scheme, who subsequently apply under RASF. These special rules are designed to allow them to utilise the benefits of both schemes.

Timing of pension bonus and RASF activities

In order for a person to access both the pension bonus and RASF schemes they must:

Access to pension bonus scheme and RASF

If a person registered under the pension bonus scheme then applies for assistance under RASF they can give their sugarcane farm away. By doing so, the gifting of the farm is disregarded under disposal of assets rules.    

Impact on bonus from giving away farm

The act of giving away the farm impacts on the bonus amount, which is calculated taking into account deemed income under the income test and the asset value under the assets test that would be maintained on the deprived value of the farm if RASF were not enacted. The gift of the farm is not considered a gift for the purposes of a disposal preclusion period for PBS.