The Federal Government is planning to tax unrealised gains in superannuation and it could have devastating impacts on family farms.

The Treasury Laws Amendment (Better Targeted Superannuation Concessions and Other Measures) Bill 2023 is colloquially known as the super tax. 

Thousands of family farms rely on super to hold farm assets, so they can pass the baton to the next generation. This tax threatens the future of many family farms.

Like any property, farmland values can rise but this doesn’t translate to income. The government is planning on taxing these rises – or unrealised gains – even if there is no intention to sell the property. By doing this the government is hitting families with unfair bills they can’t pay. 

3500 farming families who hold their properties in the super fund will be caught by the tax from day one. If land values climb, tens of thousands more are next.

And it’s not just farmers. Thousands of small businesses – think cafes, hairdressers and pharmacies – do the same thing so their children can take over the family business.

The Federal Government will attempt to pass the Bill through the Senate in the near future.

The NFF has been advocating against the proposed ‘super tax’ for nearly two years. We believe farmers aren’t ATMs to fix the government’s budget holes.