Nationals Leader Matt Canavan has met farmers and farming groups, reiterating the promise to scrap Labor’s capital gains tax (CGT) changes, to protect Australian farmers.
Speaking at Bungendore, Senator Canavan said a future Nationals Government would immediately stop all of Labor’s bad taxes, including changes made to the capital gains tax, which will also impact farmers who were not made exempt.
“Returns for Australian farmers are skewed towards capital gain, not income, and so any increase in the taxation of capital gains is going to hit Australian farmers the hardest,” Senator Canavan said.
“According to industry, less than 50 per cent of Australian farmers now fall below the current thresholds, meaning they will now be subject to one of the highest farming asset taxes in the world.
“There is no greater risk to Australia’s food security than Labor’s tax grab, with family farmers potentially facing effective tax rates well above what they are today when farms are sold or restructured.
“This would destroy returns to Australian farming and throw away all of the hard work many Australians have put into their farms over decades.
“If the government is going to consult the start-up industry on its tax changes, it should consult with Australian farmers as well, who are equally affected.
“The Coalition will fight these taxes are hard as possible and use everything we have in the Senate to stop this madness.”
Shadow Minister for Agriculture Darren Chester is urging as many farming groups as possible to use the consultation period to push for changes in their favour.
“The Nationals strongly supports the calls from the agricultural industry to safeguard farm businesses from unintended consequences, that will arise from proposed changes to the CGT for farm businesses and intergeneration succession,” Mr Chester said.
“Given that Australian farmers make most of their returns via capital gains, Labor’s broken promises Budget would be the biggest tax grab launched on Australian farming in history.
“That’s why a Nationals Government will scrap all of Labor’s planned taxes, including discretionary trusts, as well as capital gains tax, which will also impact farmers who were not made exempt, and negative gearing.
“Sadly, the Coalition is concerned that Labor’s consultation period will be nothing more than another lie, because this government has already turned its back on Australian farmers.”
Bungendore cattle and sheep farmer and butcher owner Paul Darmody said farmers needed support, not more taxes to make food production even harder.
“We paid probate on my farm in the 1970s, which was a tax that you had to pay upon transfer after a death,” Mr Darmody said.
“Now here we are years later with threats of more taxes if we sell. Where is the fairness in that?
“This country needs all the good country to farm as much as we can.
“I own a butcher with my own meat off my own farm. Production is a major part for farming. There has been good rain this week, that will help people get crops and to feed the country.
“Country has to provide food for people in the cities and that means support for the industry, not more taxes.”
