Tax Triumph: Farmers Force Government to Back Down on ‘Super Tax’
The core concern for the agribusiness sector was the original policy’s provision for taxing unrealised gains. As NFF President Jochinke stated, this provision carried “serious unintended consequences” for thousands of family farms and small businesses that utilize Self-Managed Superannuation Funds (SMSFs) for their long-term succession plans. By changing the scope of the tax to exclude unrealized gains, the government has eliminated a major financial threat, allowing farmers to plan for the future with confidence, knowing their hard work and succession strategies are secure.
The gravity of the threat was further detailed by GrainGrowers Chair Rhys Turton, whose organization’s modeling found that over 3,500 self-managed super funds holding farming land would have been immediately impacted, with a further 14,000 at risk as property values inevitably increased over time. The government’s retreat is viewed by organizations like NSW Farmers as a “huge relief" for farming families, acknowledging that farmers operate on a decadal timeline and require policy stability to ensure continuity and growth for the next generation.
The strength of this outcome demonstrates the power of unified industry action, with Australian Dairy Farmers President Ben Bennett noting that the result shows what can be achieved “when agriculture stands together and sticks to the facts.” Bennett emphasized that the government’s willingness to listen and act delivers crucial certainty for family-owned farms. This predictability is vital for their ability to invest, expand their operations, continue employing labor, and stimulate economic activity within their local communities.
The NFF had campaigned intensely on the taxation issue for nearly two years, successfully leading a large coalition comprised of the small and family business sector. The final decision to revise the tax is being widely praised as a victory for “commonsense.” The revisions regarding realized earnings and indexed superannuation thresholds mark a significant policy shift that supports long-term investment and secures the structural integrity of succession planning across the Australian agribusiness landscape.
