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What is considered to be active involvement?
A person is considered to have been actively involved in a sugarcane farm enterprise if they:
- contributed a significant part of labour to the sugarcane farm enterprise, and
- were undertaking educational studies or training in areas relevant to the sugarcane farm, during all or part of the three-year period (eg, agriculture, horticulture, business management).
Eligible descendant engaged in off-farm work
During periods of industry downturn, an eligible descendant may have been forced to obtain off-farm income as a result of the sugarcane farm being unable to support the younger generation. It is possible under RASF to accept that an eligible descendant has been actively involved with a sugarcane farm for the three years immediately before the date of transfer, where they were forced to work off-farm, during all or part of the three-year period.
Requirement to work on sugarcane farm during annual breaks and holidays
During the three years immediately prior to transfer of the sugarcane farm, an eligible descendant is required to have contributed a proportion of their labour to the sugarcane farm during term or annual breaks or holiday periods from their job, on weekends, or before or after work, where the eligible descendant was:
- undertaking educational studies or training, or
- working off-farm during periods of industry downturn.
- a majority of the enterprise is undertaken for the purposes of farming commercial quantities of cane sugar, or
- a significant proportion of the enterprise is undertaken for the purposes of growing commercial quantities of cane sugar, and the Commission has determined that there are special reasons why the farm enterprise should be treated as a sugarcane farm enterprise.
For the full definition, refer to subsection 5PAA(1).
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.
According to subsection 5P(1) of the VEA, an eligible descendant in relation to a person means:
- a child, step child or adopted child of the person or of a partner of the person, or
- a descendant in direct line of a child described above, or
- any other person who, in the opinion of the [glossary:Commission:DEF/Commission/Repatriation Commission], should be treated for the purposes of this definition as a person described in the above paragraph.
- has contributed a significant part of his or her labour to the development of the sugarcane farm; or
- has undertaken educational studies or training in a field that, in the opinion of the Commision, is relevant to the development or management of the sugarcane farm enterprise.