Primary production on a property is an individual, partnership, trust or company which operates a primary production business if they do either of the following on the land:
(a) Plant or animal cultivation, which includes:
(b) Fishing or pearling –
(c) Tree farming or felling –
Section 24 of the Duties Act 2000 (Vic) permits the aggregation of certain dutiable transactions when acquiring a property with multiple titles. Where separate transfers form “substantially one arrangement” they are to be assessed for duty on an aggregated basis. The result of aggregation is that a higher rate of duty can apply to the dutiable value of the entire property.
Section 56 of the Duties Act 2000 (Vic) provides for the transfer of family farm property to relatives. If the property forms part of a family farm, then the transfer may be determined to be exempt from stamp duty in accordance with section 56. Certain requirements relating to the land are required to be satisfied:
If you a young farmer and you are purchasing your first farmland property in Victoria, then you will be entitled to an exemption or concession on stamp duty. You must satisfy certain criteria to be eligible for the exemption or concession, which are as follows:
If you or your partner have owned another property (non-farmland property) previously, then you will still be eligible for the young farmers’ exemption or concession.
The purchase price of the property will depend on whether an exemption or concession is applied to the calculation of stamp duty.
There are numerous conditions that may disqualify you from the exemption or concession, so it is imperative you determine your eligibility before you intend to purchase a farmland property.
The transfer of farmland property which constitutes multiple parcels of land is treated by the State Revenue Office than a single parcel of land.
If you purchase farmland that you intend to be your principle place of residence, you may also be entitled to a PPR concession. It is important to note your will not be entitled to both concessions, so you will need to determine which concession is the most cost effective in the circumstances.