Recorded Webinar: Primary Production Land: Duty Exemptions for Intergenerational Transfers

Ensuring the orderly and effective succession of primary production land to the next generation is a critical objective for most primary production clients. Often, this involves the transfer of land between multiple trusts (including SMSFs) and out of companies or other outdated structures. This session reviews the various stamp duty exemptions available across the Australian jurisdictions for intergenerational transfers of primary production land and addresses a number of tips, traps and tricky issues in applying the exemptions. These include:

• When land is “used” in the business of primary production – extent and nature of use required.
• Applying the exemption in the context of unit trust, company, SMSF and discretionary trust structures, including interfacing with other duty exemptions to achieve optimal outcomes.
• Specific issues arising for businesses carried on by discretionary trusts with corporate trustees:
  • Is the business carried on by the transferor and intended to be carried on by the transferee - Revenue NSW position.
• Scope of “relative”:
  • First generation siblings passing to their respective children.
  • Does a cousin constitute a relative, and the administrative practices across jurisdictions.
  • Co-owned land – can a person be their own relative?
  • Importance of the trust deed – scope of beneficiaries permitted and key provisions to look for.
• Significant differences in relief across the Australian jurisdictions.
• Valuation and other evidentiary requirements for related party transactions.
• Strategies for effectively handing over control to the next generation.