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Significant part of capital
Under the 15 years ownership rules for RAFS and RASF, a farmer or sugarcane farmer needs to contribute a significant amount of capital to their relevant farming enterprise in order to fulfil the requirements for a qualifying farmer or qualifying sugarcane farmer respectively.
Generally, outright ownership or financial interest in the farm enterprise and farm operations for a period of 15 years would indicate significant capital contribution.
A person is considered to be a qualifying farmer if they have:
- held a qualifying interest in the farm for a continuous period of 15 years; or
- acquired a qualifying interest in the farm before 15 September 1997 and been actively involved in farming in Australia for any period of 20 years.
Refer to subsection 5P(3) and subsection 5P(4) of the VEA for the full definition.
A person is considered to be a qualifying sugarcane farmer if they have:
- held an eligible interest in the farm for a continuous period of 15 years and the farm has for the last two years and since 29 April 2004 been a sugarcane farm, or
- acquired an eligible interest in the sugarcane farm before 29 April 2004 and had an active involvement in the farm or the farming industry in Australia for any period or periods totalling at least 20 years.
During either period the person or their partner must have derived asignificant part of their income and contributed a significant part of their labour to the development of a sugarcane farm for at least the last two years.
Refer to subsections 5PAA(3) and 5PAA(4) for the full definition.
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