Farmers Say Super Tax Threatens Thousands of Family Farms

Farmers warn Labor’s new tax plan could cost them their land, and push food producers out of retirement savings.

Farmer inspects a dead Barley crop on his farm in Parkes, Australia, on Oct. 25, 2006. Ian Waldie/Getty Images

Thousands of families could be hit hard by Labor’s proposed superannuation tax, with industry leaders warning it risks pushing producers out of the land they rely on, and the retirement savings they have planned for.

The National Farmers’ Federation (NFF) has urged the Senate to reject the bill, saying the proposed tax on unrealised capital gains would unfairly penalise people for increases in land value they have not profited from.

NFF President David Jochinke said this was among its most serious flaws.

“It’s fundamentally unfair to tax hardworking families for paper gains on assets they haven’t sold,” Jochinke said.

He noted that about 17,000 family farms held in self-managed super funds would be affected under the proposal.

The NFF is also opposing any move to lower the $3 million superannuation balance threshold to $2 million to win Greens support.

“Thousands more farms will be in jeopardy if the threshold is lowered,” Jochinke warned.

“To aim for an even lower threshold to ram the Bill through the Senate is just reckless.”

He emphasised that holding farm property in superannuation is a long-standing and legitimate part of farm succession planning, used to ensure intergenerational continuity on the land.

Super Tax Debate Dominates Parliament

The issue took centre stage in Parliament on the first day of question time, with Nationals leader David Littleproud pressing the government on how the proposed tax would affect farmers during years with little or no income.

He raised the example of a farmer with land held in a self-managed super fund who had just experienced a failed season.

Assistant Treasurer Stephen Jones responded that the reform would apply only to balances above $3 million, which he said exceeded what most people required for retirement.

“This reform will still provide concessional tax treatment for that part of the balances over $3 million,” he told the House.

Jones defended the bill as a necessary move to ensure the fairness and long-term sustainability of the super system.

“This reform will only apply to around half a percent of member balances,” he added.

Broader Agriculture Policy Concerns

While the super tax remains top of mind, the NFF is also pushing senators on other key priorities.

These include reforms to the Environment Protection and Biodiversity Conservation Act (EPBC) that reduce duplication and red tape, progress on a fair EU trade deal, climate policy that protects farm productivity, and stronger food security strategies.

The NFF has urged the government to deliver a long-promised National Food Security Strategy to address rising risks from global conflict, climate change, and fragile supply chains.

“These priorities align with the NFF’s 2030 Roadmap, which charts a path for Australian agriculture to become a $100 billion industry by 2030,” Jochinke said.