Half Australia's farms are in trusts. So what does tax reform mean for farmers?
Changes to family trust taxation in Australia are raising concerns among farmers about their financial future. While primary producer income is exempt from a new minimum tax, other income sources will be taxed at a higher rate. The reforms could significantly impact farmers when selling their properties, especially those acquired before 1985.
- ▪Half of Australia's farms are held in family trusts, which help protect assets and manage income distribution.
- ▪The National Farmers Federation expressed deep concern over the potential impact of a flat 30 percent tax on trusts.
- ▪Changes to capital gains tax rules will require farmers to pay taxes on gains from properties purchased before 1985.
Opening excerpt (first ~120 words) tap to expand
What do we know about how changes to family trusts affect farmers?By David Claughton, Warwick Long and Josh BeckerABC RuralTopic:TaxFri 22 May 2026 at 6:32amFri 22 May 2026 at 6:32amFri 22 May 2026 at 6:32amNSW farmer Tony Flanery is concerned that changes in the federal budget to the way family trusts are taxed will affect his family's future. (Supplied: Tony Flanery)abc.net.au/news/farm-tax-reform-capital-gains-tax-trusts/106683240Link copiedShareShare articleHalf Australian farms are held in family trusts, so how will farmers be affected by the federal tax overhaul?Farmers use trusts to protect their assets, distribute income within their families and ensure the farm can be passed on to the next generation without incurring a large tax bill.The importance of trusts in managing farm…
Excerpt limited to ~120 words for fair-use compliance. The full article is at ABC News (Australia).