Farming Body Warns Trust Tax Exemption Won’t Cover All Farm Income

The National Farmers’ Federation (NFF) has informed a Senate inquiry that farm families may still be subject to the government’s proposed trust tax, despite an exemption for farming income itself. The Labor government plans a minimum 30 percent tax on discretionary trust income from July 2028. However, the NFF warns that income from activities such as agritourism, renewable energy projects, and leasing farmland might not be covered by the exemption.

• Farm families may still face the government’s proposed trust tax, even with an exemption for farming income.
• The proposed tax targets a minimum 30 percent on discretionary trust income from July 2028.
• Activities like cellar doors, farm stays, wind turbines, leasing farmland, processing produce, agritourism, and environmental schemes could still be taxed.
• The National Farmers’ Federation (NFF) raised these concerns in a submission to a Senate inquiry.