One of the aims of RAFS was to allow older farmers to retire from farming. In keeping with this, it was necessary for the farmer to dispose of all their farming interests if they wished to participate in RAFS.
Requirement for qualifying sugarcane farmer
Section 49Q(1) VEA
Requirement for former partner
Section 49Q(2) VEA
Forgone wages are not considered to represent an interest and cannot reduce the value of the transferred assets. However, a transfer completed prior to 29 April 2004 in recognition of forgone wages will be allowed as an interest in the assets. For example, a retiring sugarcane farmer has sugarcane assets worth $700,000. His son has worked on the farm many years and has accrued forgone wages worth $250,000. A share of the farm is transferred on 15 April 2004 representing that amount.
This chapter outlines the eligibility requirements and general information for fringe benefits.
This section contains information on:
Last amended: 22 April 2014
The [glossary:pension bonus scheme:673] (PBS) is designed to encourage a person to defer retirement. Contrary to this, the retirement assistance for farmers scheme (RAFS) encourages farmers to retire. Special rules apply to farmers registered under the pension bonus scheme, who subsequently apply for RAFS. These special rules are designed to allow them to utilise the benefits of both schemes.
Last amended: 12 August 2022
The pension bonus is a once only, tax-free lump sum payable to a person who, on reaching [glossary:pension age:316] voluntarily defers retirement for at least one year. A person can accrue a maximum of 5 qualifying bonus periods, that is equivalent to 5 years. The bonus is calculated using a multiple of the annual rate of basic pension paid at the time of actual pension grant.
This section outlines policy concerning the application of the $500,000 assets limit that applies to [glossary:sugarcane farm:618] assets transferred under RASF. It also covers policy concerning assessment of the value of sugarcane farm assets for the purposes of RASF.
