An end to 'punitive and pointless' gift duty in sight

Federated Farmers is openly welcoming Government proposals to repeal the arcane gift duty tax, which it believes is an impediment to smooth farm succession.

“Federated Farmers is extremely happy as we’ve lobbied successive Governments to end this arcane but avoidable tax, for those who have the means and time to restructure their affairs,” says Philip York, Federated Farmers economics and commerce spokesperson.

“The current gift duty threshold of $27,000 per annum means it can take decades to gift a farm from parents to their children. Succession is a major issue in farming today so the end of gift duty is a major step forward for Federated Farmers priority of farming for generations.

“In tragic circumstances gift duty greatly amplifies any sense of loss if affairs are not in order. Unless gifted, for every $1 million up to $250,000 is payable to Inland Revenue.

“Yet gift duty is easily avoided over time thanks to accountants and lawyers, so that makes gift duty not only inefficient, but punitive and pointless as well.

“Federated Farmers believes an end to gift duty is a good thing for the overall transparency of the entire tax system.

“Ending what is widely seen as an envy tax is a positive step forward and the Government has Federated Farmers full support in this. It’s actually marvelous news,” Mr York concluded.