For decades, the concession that allows primary production land to be transferred amongst family members without transfer duty consequences has been an important part of succession planning exercises.
Although traditionally the concession was only available to direct lineal descendants and spouses of a transferor, the Queensland Government has progressively widened the scope of family members who can take advantage of this benefit.
In late August, the Government included a first cousin of the transferor, and his or her spouse, to the list of transferees to whom the concession is available. Previously, transfers between first cousins had qualified for the concession under a temporary arrangement that expired in May 2020.
The expansion of the class of transferees has been welcomed by extended family groups who seek to transfer rural property across generations without incurring the significant transactional cost of transfer duty (up to 5.75% of the value).
While other conditions still need to be met for the concession to apply, the broadening of the class of transferees is a welcome step in relieving family businesses from costs associated with generational change.
How can we help?
Thynne + Macartney has extensive experience in succession planning and will continue to advocate for change to the duties regime for rural families.