Young farmers in the Western District may now be a step closer to being able to afford their first block of farm land, with a full stamp duty exemption now available on purchases by farmers aged 35 or under of land worth up to $600,000.
There is also a concession of stamp duty available for young farmers for their first block of farm land valued between $600,000 and $750,000.
The new changes have taken effect from 1 July 2018 and could provide eligible young farmers with a saving of up to $31,070. Previously, eligible young farmers could receive an exemption of stamp duty for farm properties worth up to $300,000, with a maximum saving at that time of $13,070.
SLM Law director Rebecca Alexander welcomed the change.
“It made no sense that first home buyers in Melbourne could claim a full stamp duty exemption on their first home valued up to $600,000, but that you had first time farm buyers who were giving things a red hot go and trying to kick off their farming careers, but having to pay stamp duty on farm land valued over $300,000.
It’s great to see this anomaly has been addressed.”
On top of the stamp duty benefits available to young farmers, there are also other exemptions and concessions which can be available to farming families, whether it be a purchase of a farm or a transfer of farm land between family members.
“It can be tricky to understand how much stamp duty a purchaser of farm property may be liable to pay as rural law is quite a specialised area. As country lawyers, we deal with farm land on a daily basis and we are very experienced at helping our clients understand their position and help minimise the stamp duty consequences of a transfer of land wherever possible.
Sometimes we see that the possible stamp duty ramifications of a proposed transfer of farming land is enough to scare people away from properly documenting a change of ownership in land. It’s certainly worth having a chat with us as there may be ways to limit the stamp duty liability.”
For more information call SLM Law on (03) 5231 9400 or make an appointment with us at one of our offices in Colac, Camperdown, Cobden or Apollo Bay.