Primary producers face a number of commercial and tax implications as well as potential transaction costs including duty in handing over the family farm to the next generation, according to agribusiness specialists at Cooper Grace Ward Lawyers.
Transferring the family farm to the next generation is a complex process.
To help in managing this process, Cooper Grace Ward presented a webinar on issues to consider in approaching family farm succession. The webinar, Intergenerational Transfer of Farms, identified issues when transferring assets as part of a restructure, taxation implications on the transfer of different assets, tips and tricks when applying the small business CGT concessions addressing duty implications and useful examples of passing on the family farm to the next generation.
Linda Tapiolas, partner at Cooper Grace Ward says many families have difficulty navigating the financial, taxation and duty implications of succession planning or even knowing where to start. “Handing over the family farm to the next generation is so important yet the details of doing so are rarely understood.”
Tapiolas suggests the following tips to agribusiness clients on succession planning:
- Identify what the client is trying to achieve, including:
– To whom control of the assets is going to pass to?
– When is control going to pass?
– Is there going to be any consideration paid for the assets?
- Seek advice about tax, duty and GST implications.
- Identify other commercial issues such as dealing with financiers.