The National Farmers’ Federation has welcomed the Federal Government’s decision to expand access to a key Capital Gains Tax (CGT) concession, describing it as one of the most consequential wins for the NFF and its members following sustained advocacy on behalf of farmers.
The Prime Minister today confirmed the turnover threshold for the small business 50% active asset CGT concession will increase from $2 million to $10 million, bringing the measure within reach of 99% farm businesses.
NFF President Hamish McIntyre said the change would deliver real, tangible benefits for farming families.
“This is a meaningful result for farmers. It provides greater confidence when making long-term decisions about their business and their future,” Mr McIntyre said.
“Farming is capital-intensive and often spans generations. These changes recognise that reality and ensure more farming families can access the support they need when transitioning assets, investing in productivity or planning for succession.”
The small business 50% active asset reduction is the most widely used of the four CGT concessions, allowing eligible businesses to reduce the taxable capital gain on active assets by half, in addition to other available discounts.
By lifting the turnover threshold to $10 million, approximately 99% of Australian farm businesses are expected to be eligible to access the concession, bringing around 8,700 additional farm businesses into the system.
Mr McIntyre said the outcome reflected the value of strong industry advocacy and sustained, constructive engagement between the NFF, its members and the Federal Government.
“This is a clear example of what can be achieved when farmers speak with one voice, and when government listens and works collaboratively with industry,” he said.
“The NFF has worked closely with the Government and put forward a practical case for change based on how modern farm businesses actually operate. The Government has listened to those concerns and acted, and that will make a real difference on the ground.”
The result follows weeks of advocacy by the NFF, working alongside members, the Treasurer’s office and other small business groups to ensure Australia’s tax settings better reflect the scale and structure of modern agricultural businesses.
“While there may be more work to do to ensure the full suite of reforms meets the needs of farmers, this is a strong step forward,” Mr McIntyre said.
“The fact this measure will be progressed through current legislation is critical, it gives farmers certainty now and allows them to plan ahead with confidence.”
The NFF will continue to work with the Government on tax policy to support a resilient and competitive farm sector, ensuring members’ priorities are heard and acted on in national policy decisions.
