Transfer must be a gift
Requirement for qualifying sugarcane farmer
Section 49Q(1) VEA
Requirement for former partner
Section 49Q(2) VEA
The transfer of any relevant sugarcane farm assets must occur by way of gift.
Example of a sugarcane farm transfer that is not considered to be a gift
If the sugarcane farmer signs a contract to sell the sugarcane farm(s) to the younger generation, with the price to be paid by instalments, the amount of the unpaid instalments is not an asset that can be disregarded under RASF.
Transfer must include real property
RASF definitions
Section 5PAA(1) VEA
The assets transferred must include real property (land).
Transfer of legal title required
RASF definitions
Section 5PAA(8) VEA
The sugarcane farmer must transfer the legal title of their sugarcane farm land to the eligible descendant.
Transfer under general law system
Ownership of land under general law can only be proven by the 'chain of title', the group of documents that show changes in ownership for at least the last 30 years. Where the sugarcane farmer holds general law land, this land must have been converted to a Torrens title before the transfer of legal title is accepted for RASF purposes.
Transfer under Torrens system
A sugarcane farmer's ownership of land under the Torrens system can be shown on a certificate of title issued under the relevant State land law.
Verification of transfer of title
To confirm the transfer by the sugarcane farmer to the younger generation, a copy of the certificate of title of the relevant sugarcane farm land is required by DVA. Acceptable proof of ownership, and thus transfer, differ depending on whether the title for the land is held under the general law (old) system or the Torrens system.