VEA ? [2]
Where a designated private company [3] owns the sugarcane farm [3] or sugarcane farms and relevant sugarcane farm assets [3] it is necessary to first transfer the sugarcane farm(s) and relevant sugarcane farm assets from the company to the sugarcane farmer. The sugarcane farmer can then transfer the sugarcane farm(s) and relevant sugarcane farm assets to the eligible descendants as a transfer between natural persons in order to take advantage of RASF.
Where a designated private company owns the sugarcane farm(s), there must be a transfer of legal title of the land before participation in RASF is permitted. Transfer of the private company shares by the sugarcane farmer to an eligible descendant is not sufficient. To participate in the scheme the transfer of the property must be between natural persons.
Where the sugarcane farm(s) is owned by a designated private trust [3], it is possible for the sugarcane farmer to qualify for RASF by transferring their trusteeship of a private trust to the eligible descendant(s). Under trust law, a trustee [3] is the legal owner of land held within a trust. Alternatively, the trustee may choose to transfer the sugarcane farm(s) and relevant sugarcane farming assets to the sugarcane farmer, who then transfers them to the eligible descendant(s).
A sugarcane farmer who is a trustee of a trust that owns the sugarcane farm and sugarcane farm assets has an eligible interest [3] in the sugarcane farm(s). A retiring sugarcane farmer who was a beneficiary only and not a trustee did not satisfy the rules relating to qualifying sugarcane farmer [3].
More ? [4]
According to Section 52ZZA of the VEA, a company is a designated private company at a particular time if the company:
gross operating revenue is less than $25 million;
gross assets at the end of the financial year are less than $12.5 million;
the company has fewer than 50 employees at the end of the financial year, or
and the company is not an excluded company [3].
According to subsection 5PAA(1) of the VEA [9], a sugarcane farm is a farm that is used predominantly for the purposes of a sugarcane farm enterprise [3].
According to subsection 5PAA(1) of the VEA [9], relevant sugarcane farm assets in relation to a sugarcane farm [3], means any relevant farm asset or assets [3] that are a produce of, or are used for the purposes of, a sugarcane farm enterprise [3].
According to section 52ZZB of the VEA, a trust is a designated private trust unless:
the following conditions are satisfied, that is the trust:
units [3] are held by 50 or more persons, and
the trust was not created, continued in existence or operated under a scheme that was entered into or carried out for the sole or dominant purpose of enabling any individual/s to avoid Division 11A (means test of private companies and private trusts), section 52ZZB of the VEA or the equivalent section of the Social Security Act, or
Trustee has two meanings depending on the context, (i) and (ii).
(i) a person who looks after someone else's affairs
According to section 202 of the VEA [9], a trustee is a person appointed by the Commission to administer the financial affairs of a pensioner who may be incapable of managing their own affairs for reasons such as:
These criteria include circumstances where a pensioner has a psychiatric disorder or a mental illness as a result of alcohol or drug addiction.
A trustee can be appointed, with or without the consent of the pensioner and once appointed, a trustee has full control of the pension payment.
(ii) a person responsible for administration of a trust
According to section 52ZO of the VEA [9], trustee has the same meaning as in the Income Tax Assessment Act 1997 [11].
VEA [12]
Eligible interest in a sugarcane farm
Subsection 5PAA(5) [9] VEA
Eligible interest in a relevant sugarcane farm asset
Subsection 5PAA(6) [9] VEA
VEA (go back) [13]
A sugarcane farmer holds an eligible interest in a sugarcane farm [3] if they:
Refer to subsection 5PAA(5) for the full definition.
VEA [14]
Qualifying sugarcane farmer – 15 years continuous involvement
Subsection 5PAA(3) [9] VEA
Qualifying sugarcane farmer – 20 years involvement
Subsection 5PAA(4) [9] VEA
VEA (go back) [15]
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 [3] and contributed a significant part of their labour [3] 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.
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16231%23comment-form
[2] https://clik.dva.gov.au/book/export/html/16231#tgt-cspol_part5_ftn428
[3] https://clik.dva.gov.au/%23
[4] https://clik.dva.gov.au/book/export/html/16231#tgt-cspol_part5_ftn429
[5] https://clik.dva.gov.au/service-eligibility-assistant-updates/all-determinations-order-date-signed-oldest-most-recent/determinations-under-vea
[6] https://clik.dva.gov.au/book/export/html/16231#ref-cspol_part5_ftn428
[7] https://clik.dva.gov.au/compensation-and-support-policy-library/part-10-types-income-and-assets/103-business-structures-and-trusts
[8] https://clik.dva.gov.au/book/export/html/16231#ref-cspol_part5_ftn429
[9] http://clik.dva.gov.au/legislation-library
[10] clikpopup://DEF/Excluded%20trust
[11] http://www.comlaw.gov.au/comlaw/management.nsf/lookupindexpagesbyid/IP200401745?OpenDocument
[12] https://clik.dva.gov.au/book/export/html/16231#tgt-glossary_glossary_ftn3
[13] https://clik.dva.gov.au/book/export/html/16231#ref-glossary_glossary_ftn3
[14] https://clik.dva.gov.au/book/export/html/16231#tgt-glossary_glossary_ftn5
[15] https://clik.dva.gov.au/book/export/html/16231#ref-glossary_glossary_ftn5