Farms will be exempt from tax amendments applicable to vacant land designed to prevent land banking and encourage development of housing.
NSW Nationals Senator Perin Davey said the impact on agricultural land was raised soon after the Treasury Laws Amendment (2019 Tax Integrity and Other Measures No. 1) Bill was tabled.
“When I took on this role, I made a commitment that I would look at all legislation through the lens of regional New South Wales, , which is something we in the Nationals do, day in and day out,” Senator Davey said.
“This legislation as originally drafted was a classic case of a law written with good intent, but failed to identify the unintended consequences on regional Australians.”
Senator Davey said there are many farmers who lease all or part of their farmland either through lease farming arrangements or as part of their business succession planning.
“Without the clear legal exemptions, there was too much of a grey area to satisfy me.
“I had received different advice from stakeholders and that is not a good enough assurance for the farmers and farming families that I represent.
“I am pleased the responsible minister, Assistant Treasurer Michael Sukkar MP, responded to my concerns and we now have amendments to specifically exempt land used for primary production or land leased to carry on a business.
“This is a win for farmers who can continue to lease their land and legitimately claim costs of holding that land as a tax deduction.”