FARM WEEKLY | Superannuation changes may see owners 'bringing forward' the sale of farms

Agricultural landholders with superannuation funds housing property assets and balances over $3 million may resort to selling off land assets to fund a Federal Government proposed tax of 15-30 per cent on unrealised capital gains.

This is the warning a trio of experts made during a Grain Producers Australia webinar examining impacts of the policy for farmers.

Farm Weekly reported that it is believed about 3000 farmers will be initially impacted, but that could grow to more than 10,000 within a few years.

Seer Financial Group accountant John Thomson told the webinar last Thursday that there were two groups within the "elite" number of $3m plus SMSF holders in those who can satisfy a condition release of lumpy assets immediately or very soon, and those who cannot.

"A certain group of Australians always will be at the edge because changing the rules doesn't mean the end of the story, it just means another chapter in the way we deal with the regulator," he said.

"Now, unfortunately, that just means cost and complexity. They've drafted (the legislation), modelled it, against industry funds... and they've got simply no idea of the practicalities of how this is going to work."

RSM business advisory partner Katie Timms said: "I've spoken to people who have actually just made the call and said this land is going to continue to grow and I'm not going to have 150 grand to be able to pay that".

"It's not an easy decision to make... and every person needs to think about their own circumstances, people do get caught up in what is in media (and) it might be that super is still the best tax environment to have assets," she said.

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