Last amended: 19 August 2009
RASF was part of the Federal Government's 2004 Sugar Industry Reform Program, announced by the Prime Minister on 29 April 2004. RASF was a scheme that intended to allow older sugarcane farmers to transfer ownership of the family sugarcane farm or farms, by way of gift to the younger generation, without affecting the retiring sugarcane farmer's eligibility for income support, or rate of income support.
Any sugarcane farmer, the partner [2] or former partner of a sugarcane farmer, or the widow [2]/widower [2] of a sugarcane farmer who transfers a sugarcane farm [2] property within the period that the scheme is in operation, by way of gift, to the younger generation, and then retires from sugarcane farming, may be eligible to participate in RASF. The person must reach retirement or pension age [2] prior to 13 July 2007.
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RASF commenced on 13 July 2004 and operated up to and including 12 July 2007.
Certain requirements have to be met in order for participation in RASF to be considered for a particular sugarcane farm transfer.
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A person must be a qualifying sugarcane farmer [2], or the partner or former partner of a qualifying sugarcane farmer or the widow/widower of a qualifying sugarcane farmer to be eligible to divest a sugarcane farm under RASF.
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An eligible descendant [2] must be actively involved with a sugarcane farm [2] when the farm is transferred to them under RASF.
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If a claim for service pension [2] or income support supplement [2] is lodged within 13 weeks of the date of transfer of the sugarcane farm(s), the sugarcane farmer's pension entitlements may under certain circumstances be backdated to the date of transfer.
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Where a sugarcane farmer who transfers a sugarcane farm property to the younger generation is eligible to participate in RASF, the value of the sugarcane farm(s) transferred (up to a maximum of $500,000) is not assessed under the deprivation provisions [2]. This may result in an increase in the rate of pension payable to the sugarcane farmer or a rate of pension payable where previously no income support pension [2] was payable.
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Sugarcane farmers who are contemplating a transfer of their sugarcane farm(s) and sugarcane farm assets to the younger generation in order to participate in RASF are strongly advised to seek professional advice in relation to succession planning and legal and taxation matters, as well as any impact on the transferee.
Sugarcane farmers who are members of the pension bonus scheme (PBS) may also participate in RASF. However, the transfer of the sugarcane farm is regarded as a disposed asset for the purposes of calculating the amount of bonus payable.
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Requirements applicable to sugarcane farmer, partner or former partner
Section 5.10.4 [14]
Requirement for active involvement of eligible descendants
Section 5.10.5 [16]
A person's 'partner' is someone who is a member of a couple with that person.
A widow is a woman who was:
A widower is a man who was:
According to subsection 5PAA(1) of the VEA [24], a sugarcane farm is a farm that is used predominantly for the purposes of a sugarcane farm enterprise [2].
Currently, the pension age for a veteran is 60 years of age (VEA 5QA).
The pension age for a non-veteran is determined by the table below:
Date of birth (both dates inclusive) | Age Pension age |
1 July 1952 to 31 December 1953 | 65 years and 6 months |
1 January 1954 to 30 June 1955 | 66 years |
1 July 1955 to 31 December 1956 | 66 years and 6 months |
On or after 1 January 1957 | 67 years |
VEA [25]
Qualifying sugarcane farmer – 15 years continuous involvement
Subsection 5PAA(3) [24] VEA
Qualifying sugarcane farmer – 20 years involvement
Subsection 5PAA(4) [24] VEA
VEA (go back) [26]
A person is considered to be a qualifying sugarcane farmer if they have:
During either period the person or their partner must have derived a significant part of their income [2] and contributed a significant part of their labour [2] 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 subsection 5P(1) [24] of the VEA, an eligible descendant in relation to a person means:
According to subsection 49Q(5) [27] of the VEA, a person is deemed to have been actively involved with a sugarcane farm [2] during a particular period if during that period the person:
A service pension is an income support payment broadly equivalent to the social security age and disability support pensions. It may be paid once a veteran or partner has reached the nominated age or is incapacitated for work.
ISS is an income support payment that may be paid to eligible war widows and widowers under the VEA and persons receiving wholly dependent partners' compensation under the MRCA, and who satisfy the means tests. It is an indexed rate, increased twice-yearly in March and September in line with changes to the cost of living and/or average wages. Income Support Supplement (ISS) legislation commenced on 20 March 1995. It is a payment created to replace the ceiling rate income support age, carer, wife and disability support pensions, paid to war widows/widowers by Centrelink.
Income support pension is:
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16158%23comment-form
[2] https://clik.dva.gov.au/%23
[3] https://clik.dva.gov.au/book/export/html/16158#tgt-cspol_part5_ftn408
[4] https://clik.dva.gov.au/book/export/html/16158#tgt-cspol_part5_ftn409
[5] https://clik.dva.gov.au/book/export/html/16158#tgt-cspol_part5_ftn410
[6] https://clik.dva.gov.au/book/export/html/16158#tgt-cspol_part5_ftn411
[7] https://clik.dva.gov.au/book/export/html/16158#tgt-cspol_part5_ftn412
[8] https://clik.dva.gov.au/book/export/html/16158#tgt-cspol_part5_ftn413
[9] https://clik.dva.gov.au/book/export/html/16158#tgt-cspol_part5_ftn414
[10] https://clik.dva.gov.au/compensation-and-support-policy-library/part-5-income-support-allowances-and-benefits/510-retirement-assistance-sugarcane-farmers-scheme-rasf/5102-eligibility-criteria-participation-rasf
[11] https://clik.dva.gov.au/book/export/html/16158#ref-cspol_part5_ftn408
[12] https://clik.dva.gov.au/compensation-and-support-policy-library/part-5-income-support-allowances-and-benefits/510-retirement-assistance-sugarcane-farmers-scheme-rasf/5103-requirements-applicable-sugarcane-farm-transfer
[13] https://clik.dva.gov.au/book/export/html/16158#ref-cspol_part5_ftn409
[14] https://clik.dva.gov.au/compensation-and-support-policy-library/part-5-income-support-allowances-and-benefits/510-retirement-assistance-sugarcane-farmers-scheme-rasf/5104-requirements-applicable-sugarcane-farmer-partner-or-former-partner
[15] https://clik.dva.gov.au/book/export/html/16158#ref-cspol_part5_ftn410
[16] https://clik.dva.gov.au/compensation-and-support-policy-library/part-5-income-support-allowances-and-benefits/510-retirement-assistance-sugarcane-farmers-scheme-rasf/5105-requirement-active-involvement-eligible-descendants
[17] https://clik.dva.gov.au/book/export/html/16158#ref-cspol_part5_ftn411
[18] https://clik.dva.gov.au/compensation-and-support-policy-library/part-5-income-support-allowances-and-benefits/510-retirement-assistance-sugarcane-farmers-scheme-rasf/5106-claims-participation-rasf/lodgement-rasf-claim
[19] https://clik.dva.gov.au/book/export/html/16158#ref-cspol_part5_ftn412
[20] https://clik.dva.gov.au/compensation-and-support-policy-library/part-5-income-support-allowances-and-benefits/510-retirement-assistance-sugarcane-farmers-scheme-rasf/5107-valuation-sugarcane-farm-assets
[21] https://clik.dva.gov.au/book/export/html/16158#ref-cspol_part5_ftn413
[22] https://clik.dva.gov.au/compensation-and-support-policy-library/part-5-income-support-allowances-and-benefits/56-pension-bonus-scheme/5612-pension-bonus-and-retirement-assistance-sugarcane-farmers-rasf
[23] https://clik.dva.gov.au/book/export/html/16158#ref-cspol_part5_ftn414
[24] http://clik.dva.gov.au/legislation-library
[25] https://clik.dva.gov.au/book/export/html/16158#tgt-glossary_glossary_ftn5
[26] https://clik.dva.gov.au/book/export/html/16158#ref-glossary_glossary_ftn5
[27] http://clik.dva.gov.au/node/32981