Do you want half price legal and accounting services when preparing your Wills or transferring your farm onto your children?

Succession and estate planning has been one of the biggest challenges faced by primary producers for generations. Passing on control of the family farming business and assets to the next generation is often a complicated process. There is no “one-size-fits-all” solution and getting professional advice about your particular circumstances is critical. The Queensland Government’s recent introduction of “Farm Management Grants” has made getting this advice substantially more affordable for primary producers.

What the Grant entitles you to: A rebate of fifty percent (50%) of the amounts you have paid or expect to pay for eligible professional advice, up to a maximum of $2,500 per applicant, per financial year.
 
The rebate will be available for the financial years ending 2017, 2018 and 2019. Applications for the relevant financial year must be received by 30 June in that financial year.
Are you eligible?
 
To be eligible for the rebate an applicant must satisfy the following criteria:
  • The applicant must be a primary producer* or a relative of the primary producer; and
  • The applicant must have paid for, or will pay for, professional advice about the transfer of an interest in a primary production enterprise from a primary producer to a relative of the primary producer (“eligible professional advice”); and
  • The eligible professional advice must have been received on or after 23 March, 2017; and
  • The eligible professional advice must be provided by a person who:
    • has relevant qualifications to provide the advice; and
    • has membership with a professional body that entitles the adviser to provide the advice; and
    • is not related to the applicant and is not employed by an entity owned or partially owned by the applicant.
 
 
 
For example - solicitors, accountants and financial planners.

*Primary Producer means:

  1. A sole trader who spends at least fifty percent (50%) of his or her labour on, and makes at least fifty percent (50%) of his or her income from, a primary production enterprise; or
  2. Any partner in a partnership, shareholder in a company or beneficiary of a trust who spends at least fifty percent (50%) of their labour on, and makes at least fifty percent (50%) of their income from, a primary production enterprise.
 
Note – Hobby farms won’t satisfy these criteria.

*Primary Production Enterprise means a business that:

  1. is carried on by a primary producer; and
  2. involves primary production (including agricultural, aquacultural, grazing and horticultural industries); and
  3. holds an Australian Business Number.
 
Example Transactions

The rebate is intentionally broad, with the objective of reducing the cost of obtaining professional advice in relation to succession planning and intergenerational transfers of farm businesses. Primary producers or their children or relatives who have received, or are seeking, professional advice about the transfer or sale of a farm are eligible for assistance under the scheme.

Transfers of farms between family members can take various forms – including (but not limited to):
  • transfers of the whole farm or part of the farm;
  • transfers for full market value;
  • transfers for part value (e.g. where the next generation takes ownership of the farming business in exchange for assuming any debt relating to the business);
  • transfers by way of gift;
  • transfers to take effect on a trigger event (e.g. on retirement of the primary producer); or
  • transfers in the form of a gift in a Will.
 
Often in family farming scenarios only some of the children of the primary producer may be involved in the farming business and have intentions of taking it over when their parents retire. The criteria for this grant should be wide enough to cover the children who may not be receiving a share in the farm where they want to obtain professional advice about their options.

How do I apply?

Applications for Farm Management Grants can be made via QRAA’s online portal at https://applyonline.qraa.qld.gov.au/
A PDF version of the Application Form is available at http://www.qraa.qld.gov.au/__data/assets/pdf_file/0017/8054/Farm-Mgt-Grants-application-v1.pdf
 
McKays Can Assist You
 
The team at McKays understands the personal and business needs of primary producers and their families and has a wealth of experience in advising and assisting with rural and succession planning matters and transactions.

For more information about the Farm Management Grant please feel free to contact us.