5.10.1 Overview of Retirement Assistance for Sugarcane Farmers Scheme (RASF)

Last amended: 19 August 2009

What is RASF

RASF was part of the Federal Government's 2004 Sugar Industry Reform Program, announced by the Prime Minister on 29 April 2004. RASF was a scheme that intended to allow older sugarcane farmers to transfer ownership of the family sugarcane farm or farms, by way of gift to the younger generation, without affecting the retiring sugarcane farmer's eligibility for income support, or rate of income support.

Who can participate in RASF

Any sugarcane farmer, the partner or former partner of a sugarcane farmer, or the widow/widower of a sugarcane farmer who transfers a sugarcane farm property within the period that the scheme is in operation, by way of gift, to the younger generation, and then retires from sugarcane farming, may be eligible to participate in RASF. The person must reach retirement or pension age prior to 13 July 2007.    

Period of operation of RASF

RASF commenced on 13 July 2004 and operated up to and including 12 July 2007.

Requirements applicable to sugarcane farm transfer

Certain requirements have to be met in order for participation in RASF to be considered for a particular sugarcane farm transfer.    

Sugarcane farmer must be a qualifying sugarcane farmer

A person must be a qualifying sugarcane farmer, or the partner or former partner of a qualifying sugarcane farmer or the widow/widower of a qualifying sugarcane farmer to be eligible to divest a sugarcane farm under RASF.    

Transfer of farm to actively involved eligible descendent

An eligible descendant must be actively involved with a sugarcane farm when the farm is transferred to them under RASF.    

Backdating provisions

If a claim for service pension or income support supplement is lodged within 13 weeks of the date of transfer of the sugarcane farm(s), the sugarcane farmer's pension entitlements may under certain circumstances be backdated to the date of transfer.    

Benefits of participation in RASF

Where a sugarcane farmer who transfers a sugarcane farm property to the younger generation is eligible to participate in RASF, the value of the sugarcane farm(s) transferred (up to a maximum of $500,000) is not assessed under the deprivation provisions. This may result in an increase in the rate of pension payable to the sugarcane farmer or a rate of pension payable where previously no income support pension was payable.    

Need for professional advice

Sugarcane farmers who are contemplating a transfer of their sugarcane farm(s) and sugarcane farm assets to the younger generation in order to participate in RASF are strongly advised to seek professional advice in relation to succession planning and legal and taxation matters, as well as any impact on the transferee.

Pension bonus scheme

Sugarcane farmers who are members of the pension bonus scheme (PBS) may also participate in RASF. However, the transfer of the sugarcane farm is regarded as a disposed asset for the purposes of calculating the amount of bonus payable.