Section 49A(1) VEA - Requirement for qualifying farmer
Section 49A(2) VEA - Requirement for former partner
Three years of active involvement required
Where f — arm 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.
Active involvement
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... |
Then... |
|
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.
Discretionary power - Powers of Administration and Delegation