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Significant part of income
For RAFS and RASF, a farmer or sugarcane farmer needs to derive a significant part of their income from their relevant farming enterprise in order to fulfil the requirements for a qualifying farmer and qualifying sugarcane farmer respectively.
When determining whether a person derived a significant part of their income from farming or sugarcane farming, gross (before expenses) income figures should be used. The general rule will be that at least half of the person's income was involved. The entire period is examined as a whole.
An indication of a family member's major source of income can be obtained from the farmer's tax return or the farm or sugarcane farm business tax return.
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.
During either period the person or their partner must have derived a significant part of their income and contributed a significant part of their labour to the development of a farm.
Refer to subsection 5P(3) and subsection 5P(4) of the VEA for the full definition.
Qualifying sugarcane farmer – 15 years continuous involvement
Qualifying sugarcane farmer – 20 years involvement
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 a significant 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.
According to section 5L of the VEA a family member, in relation to a person, means:
- the partner, father or mother of the person, or
- a sister, brother or child of the person, or
- another person who, in the Commission's opinion, should be treated as one of these relations for the purposes of this definition.
Please note, the definition of a parent is further defined in section 10A of the VEA.
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 5PAA(1) of the VEA, a sugarcane farm is a farm that is used predominantly for the purposes of a sugarcane farm enterprise .
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