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Significant part of labour and capital
For RAFS and RASF, under the 15 years ownership rule, a farmer or sugarcane farmer must have contributed a significant part of their labour and capital to the development of a farm or farms.
For RASF under the 15 years ownership rule, the contribution of labour and capital must relate to sugarcane farm(s) during at least the last 2 years.
See glossary terms significant part of labour and significant part of capital for details.
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 .
In considering whether a 'significant part' of the person's labour was related to the farm, the general rule will be that at least half of the person's working hours were involved. The entire period is examined as a whole.
RAFS example: A farmer purchased his farm in 1982. From 1993 to 1995 the farmer worked full time in off-farm employment, but continued to work on the farm after work and on weekends, and continued to receive a small income from his farm. For the remainder of the period, all of his labour was contributed to the farm. The farmer retired in 1998 and gifted the farm to his daughter. The farmer is a qualifying farmer because he has continuously owned a farm for at least 15 years, and during that time the significant part of his income, labour and capital was related to his farm.
RASF example: A sugarcane farmer purchased his sugarcane farm in 1988. From 1999 to 2001 the farmer worked full time in off-farm employment, but continued to work on the sugarcane farm after work and on weekends, and continued to receive a small income from his sugarcane farm. For the remainder of the period, all of his labour was contributed to the sugarcane farm. The sugarcane farmer retired in August 2004 and gifted the sugarcane farm to his daughter. The sugarcane farmer is a qualifying sugarcane farmer because he has continuously owned a sugarcane farm for at least 15 years, and during that time the significant part of his income, labour and capital was related to his sugarcane farm.
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.
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