Government must consult farmers on superannuation changes

Australia’s peak farming body has warned that superannuation changes announced by Treasurer Jim Chalmers could cool investment in agriculture, unless the detail is worked through with farmers.

National Farmers’ Federation CEO Tony Mahar is now calling on the Government to undertake formal consultation before the measure is budgeted and legislated later this year.

“For many farmers, their farm is their superannuation, and it’s not uncommon to hold land assets in superannuation –particularly as the next generation enters the business.

“Yesterday’s announcement throws up signifcant uncertainty for family farms – with scant detail on things like grandfathering, treatment of revaluations, or how this might impact lending in a climate of rising costs and interest rates.

“A change as signifcant as this can’t just be left to policy by press release. We deserve a formal consultation process to unpack the detail and provide input.”

Mr Mahar said that the uncertainty created by this proposal risked chilling investment in an industry crying out for capital.

“Research from AgriFutures Australia shows that Australian agriculture needs an additional $3 billion in capital investment each year to reach our target of $100 billion in farm gate output by 2030.

“Now is not the time to dampen investment in one of Australia’s growth industries that creates jobs in regional Australia and plays a central role in our transition to a low carbon economy,” Mr Mahar concluded.