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Application of Requirement for Active Involvement
Three years of active involvement required
Where farm assets were transferred to an eligible descendant under RAFS, the descendant was required to establish that they had, over the three years immediately before the transfer of the farm, been actively involved in the farm.More ?
Who was required to meet the active involvement rule?
The following table demonstrates how a person met the active involvement rule.
If the farm was transferred to...
one eligible descendant
that person was required to meet the active involvement rule
an eligible descendant and their partner
only one member of the couple was required to meet the active involvement rule
multiple eligible descendants
each person was required to meet the active involvement rule
multiple eligible descendants and their partners
only one member of each couple was required to meet the active involvement rule
Example of active involvement of one member of couple
Where a farm(s) was transferred to a daughter and son-in-law, provided that the son-in-law demonstrated active involvement in the farm, it was not relevant that the daughter may have worked outside of the farm enterprise.
Commission discretion in exceptional circumstances
Under RAFS the Commission had discretionary power to deem an eligible descendant to have been actively involved in a farm enterprise where they would have been actively involved but for circumstances out of their control.More ?
Section 49A(1) VEA - Requirement for qualifying farmer
Section 49A(2) VEA - Requirement for former partner
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.
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 5P(1) of the VEA, a farm enterprise means an enterprise carried on within any of the agricultural, horticultural, pastoral or aquacultural industries.