CGT and farming

Question

1. Did Treasury consult DAFF, ABARES or any external agricultural stakeholders before settling the Budget CGT changes? If so, identify the parties consulted and the dates of consultation? 2. What work did Treasury do before the Budget on how the CGT changes would affect family farms, long-held farm assets, farm succession and intergenerational transfer? 3. For farm assets held before 1 July 2027, how does Treasury expect taxpayers to determine the transition-point value, particularly for rural land, water entitlements and mixed-use farm assets? a. Did Treasury assess whether valuation and apportionment methods could produce materially different tax outcomes? 4. The Budget material states that the small business CGT concessions are unchanged. Has Treasury assessed how many farm businesses may not qualify in practice because farmland or related asset values exceed the relevant thresholds? 5. Has Treasury assessed how the post-1 July 2027 CGT rules will interact with the 15-year small business CGT exemption for farmers? Are assets treated as continuously held for concession purposes? Will any farmers lose access to that exemption? If so, where is this reflected in the legislation or explanatory materials?