Significant changes to the Duties Act 2008 to ease the family farm duty exemption
|The recent changes to the Duties Act 2008, introduced as part of the Revenue Laws Amendment Bill 2018 and taking effect from 1 July 2019, will cause significant changes to the application of stamp duty in Western Australia.
Importantly for our farming clients, the proposal will implement a relaxation of the rules regarding the Family Farm Transfer Duty Exemption (the Farming Exemption).
The Farming Exemption is an important tool utilised by farming families to allow for the transfer of farming property to family members, without having to incur the payment of stamp duty, which can be a significant cost. The updated legislation is designed to more adequately reflect modern farming business structures and address many of the restrictions which have previously caused significant difficulties for clients wishing to utilise the Farming Exemption as part of farming succession arrangements.
As part of the changes, the Farming Exemption will now apply where:
Although the new legislation is designed to relax the strict requirements surrounding the Farming Exemption, care is still required to ensure that the transaction remains compliant with the Duties Act 2008 and the transfer will be exempt from stamp duty.
Should you require our assistance, please call us or or email us.
Date: July 2019