Family Farm Exemption - Stamp Duty

April 19, 2023

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Does the Exemption Apply to me?


The family farm exemption is one of several exemptions under the Duties Act 2008 (WA). The exemption applies to farm land that is transferred between family members that use the land solely or dominantly for the purpose of primary production. If applicable, the exemption can save farming families from having to pay substantial amounts of duty.


However, the exemption does have limitations. In particular, the Act requires the “transferor” to be an individual or a bare trustee who is acting on behalf of an individual. This means that if the farm is held in the name of a company, and the directors wish to transfer the farm to their children, the transaction will not be exempt from duty.


Limitation also arises from the definition of “transferee”. If the transferee is a family member or the trustee of a trust in which each beneficiary is a family member of the transferor then the exemption will apply. However, if the transferee is a trustee of a discretionary trust in which a company can be a beneficiary, then the exemption will not be applicable.


A lot of family farms are held under a trust, individually, by several persons involved in the farm business or in a company. In most instances all of the key people will be related family members. It is not always the case though that the family farm exemption will apply where land is transferred for the benefit of other family members.


If you are contemplating a transfer of land for the benefit of other family members, for business succession or otherwise, ensure to seek advice early on whether duty will or will not apply to the transition.


By Matilda Lloyd (Law Graduate)


If you need assistance or have questions relating to the family farm exemption or the structure of your family farm, please contact us on (08) 9321 5451 or by email at office@bailiwicklegal.com.au.


For further information about our legal services, please visit our website: https://www.bailiwicklegal.com.au/


The above information is a summary and overview of the matters discussed. This publication does not constitute legal advice and you should seek legal or other professional advice before acting or relying on any of the content.

Bailiwick Legal newsletter June 2024 edition

By Jessica Brunner • June 19, 2024
Our June 2024 newsletter is now available. Have a read to find out what we have been up to in the first half of the year!

ISCC Spraying decision

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