Recent superannuation laws passed in the House of Representatives have missed the mark for family farming businesses according to NSW Farmers'.

The Treasury Laws will place new taxes on unrealised gains in superannuation holdings, including farms, which could tax farmers for income they will never see, according to NSW Farmers Business Economics and Trade Committee chair John Lowe. 

“This law is not going to affect the people with hundreds of millions of dollars in their superannuation accounts, but rather the hard-working Australians who own their businesses or farm assets in structures such as self-managed superannuation funds,” Mr Lowe said. 

“Self-managed superannuation funds are a common-tool-farmers use to manage their farms and aid business succession, and now, their farms are at risk because the government wants to rush through new tax laws without considering how agriculture operates.” 

Member for Barwon Roy Butler appreciates that while it is a federal issue, it is still bound to affect many farmers in the Barwon area. 

"I support holding property within a superannuation fund and any measure that allows for transferring farm assets to new entrants into farming or children. This may need to be done through a new tax vehicle, like the one they have in New Zealand, which allows for easy transfer of farm assets to keep farming in the family or new entrants into farming," Mr Butler said.

"As we saw through the drought, agricultural land can increase in value despite poor agricultural seasons. This could create a significant cashflow issue and force people off the land. That is not an acceptable outcome for anyone." 

Federal member for Parkes Mark Coulton is also scratching his head about the decision. 

“This is another assault by the Albanese Labor Government on the farming sector,” said Mr Coulton. 

“Many farmers have used self-managed superannuation funds to manage succession planning, and the taxing of an appreciating asset that is not generating extra income will be devastating. 

“The Treasurer would be well aware of this, but frankly doesn’t care,” he added. 

With several financial associations and accounting bodies also raising their concerns around the bill, Mr Lowe said that any changes made to tax laws placing unfair financial pressure on family farms including small, family-owned businesses was something that needed to be carefully examined. 

“These proposed changes could well force many farmers to sell the farm they operate or lease to their children, unless they’re able to take out even more loans to try and meet new tax obligations,” Mr Lowe said.  

“NSW Farmers supports sensible amendments to super – not taxes that will enable the super-rich to continue unaffected, while the small businesses and farm family businesses suffer. 

“Aussie families and young Aussie farmers all deserve to be able to run their own businesses without crippling bureaucracy and taxes, and there’s no doubt we need our family farms to stay if we want to have our own, homegrown food and fibre.”