26 November 2024. Michael Guerin, AgForce CEO.
The absurdity of it is breathtaking - but it may just get through the Upper House. In fact, it has already passed the Lower House.
Our Federal Treasurer is trying to legislate a tax on 'unrealised gains' - I kid you not. It's not new unfortunately - something similar has already passed the parliament in the United Kingdom.
It's been sitting in the consideration of our federal treasurer since February 2023.
So, for many farming families with a significant asset (they own their land), they could be slugged with a tax on unrealised gains (as the valuation of their farm has increased), but their cash flow does not afford them the ability to meet this new tax obligation. But our policy makers don't seem to care!
It's been hard enough already for many farmers managing rising rates and rents that come with the increasing valuations we have seen in recent years.
Its another example of a Government right out of touch with the very industry that has ensured food security in Australia for generations.
Farms held in superannuation funds that allow intergenerational transfer is a bedrock of the fabric of our industry and regional communities - yet our Government seems hell bent on tearing that apart.
They don't seem to care about farmers and family enterprises with illiquid property in superannuation funds, who at the same time are helping ensure our country is fed and clothed with the food and fibre they produce.
Exactly how do they propose these family businesses pay this proposed new tax without the cashflow to go about meeting their tax obligations should this pass?
The Federal Election cannot come soon enough. AgForce, as the Queensland delegate to the National Farmers Federation, has several key questions to put to all political parties on the way towards what is shaping up as a consequential election for industry and regional communities.
We are leaving no stone unturned in working with the Independents on stopping this ridiculous plan, especially as we know the Greens will support it. Plan A is to get it defeated in the Senate, Plan B is if it passes, to make this a crucial issue in what needs to be a strong federal election campaign in 2025.
If you're not an AgForce member I encourage you to join. Some seminal moments for industry are right in front of us, where strength and unity could well make the difference.
