❓ Hon Bill Stretch asks the Treasurer about payroll tax and stamp duty relief for drought-affected farmers and rural businesses. The government declines tax reductions but highlights existing exemptions and a new $6.8 million assistance package.
AnsweredQoN 347Legislative Council
QuestionView source ↗
I refer to the Premier’s recognition of the drought-affected and water-deficient areas of Western Australia and the plight of many farmers, small businesses, associated contractors, workers and their families. (1) (a) Will the Government grant significant payroll tax rate reductions to farmers and pastoralists and all rural businesses genuinely situated within such drought-affected shires to retain more rural jobs and enterprises and, thereby, country populations and infrastructure? (b) If not, why not? (2) (a) What stamp duty exemptions are currently available in drought-affected areas for farmers, farm contractors and rural businesses? (b) If no such significant relief is available, will the Government give serious and urgent consideration to such measures to assist these vital export-earning businesses to retain their competitiveness and viability? (c) If not, why not? Hon NICK GRIFFITHS
AnswerView source ↗
I thank the member for some notice of this question. (1) (a) The Government is not considering granting payroll tax rate reductions to farmers, pastoralists and other rural businesses situated in drought-affected areas. Most farmers, pastoralists and other rural businesses do not pay payroll tax, most likely reflecting that their annual payroll is below the $675 000 payroll tax exemption threshold. It is worth noting that employers in remote areas already benefit from a payroll tax exemption on certain fringe benefits paid to employees in remote areas. These benefits include housing, annual leave travel assistance, power and water subsidies and child education bursaries. For the purpose of payroll tax, a remote area in most cases is a place at least 100 kilometres from Perth and at least 40 kilometres from Albany, Bunbury, Geraldton and Rockingham. (b) Payroll tax relief - or indeed other forms of state tax relief - is not considered the most appropriate form of assistance for businesses affected by drought. This reflects the Government’s belief that providing tax exemptions to specific businesses would be difficult to target, would benefit primarily larger operations, would compromise the integrity of the tax system and would be administratively costly. Providing assistance through other means, such as grants and subsidies, is considered more appropriate in these circumstances. As such, the Government has recently announced an assistance package worth $6.8 million to aid farmers and rural communities that are struggling to cope with this year’s drought. This assistance package includes - direct assistance grants of up to $6 000 per eligible farm business, totalling $3.3 million; a special addition of $1.5 million to the farm water grants scheme; extra resources of $300 000 to extend rural counselling services; and a total of $1.6 million set aside to provide the state component of any new successful application to the national exceptional circumstances scheme. In addition to this package, the Government will consider requests from shires in the worst hit areas to announce water deficiency declarations - which declarations would trigger funding for line haulage of stock water for farmers whose nearest water source is greater than 40 kilometres from their farms - and the Government will bring forward capital works to provide funding injections to local economies. (2) (a) There are no stamp duty exemptions specifically related to drought-affected areas. However, taxpayers in these areas have access to - a general stamp duty exemption for the transfer of a family farm from a farmer to a family member - children, parents, siblings, aunts, uncles, spouses or former spouses - providing the family member intends to continue to use the farming property in the business of primary production. This exemption does not extend to farm contractors or rural businesses; a concession in respect of transfers of farming land, in that stamp duty is not chargeable on chattels transferred in conjunction with farming land, unlike transfers of land generally; a general stamp duty exemption for deeds extending the terms of repayment for amounts secured by mortgages; and a stamp duty concession for refinancing farm loans for farmers who wish to transfer their mortgages to take advantage of more competitive interest rates and loan packages with other financial institutions. A full refund of stamp duty applies when the amount financed with the new financier remains the same and the loan has been utilised for farming purchases. (b)-(c) The Government has recently announced an assistance package to aid drought-affected farmers and rural communities. See (1)(b).
(1) (a) Will the Government grant significant payroll tax rate reductions to farmers and pastoralists and all rural businesses genuinely situated within such drought-affected shires to retain more rural jobs and enterprises and, thereby, country populations and infrastructure? (b) If not, why not? (2) (a) What stamp duty exemptions are currently available in drought-affected areas for farmers, farm contractors and rural businesses? (b) If no such significant relief is available, will the Government give serious and urgent consideration to such measures to assist these vital export-earning businesses to retain their competitiveness and viability? (c) If not, why not? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. (1) (a) The Government is not considering granting payroll tax rate reductions to farmers, pastoralists and other rural businesses situated in drought-affected areas. Most farmers, pastoralists and other rural businesses do not pay payroll tax, most likely reflecting that their annual payroll is below the $675 000 payroll tax exemption threshold. It is worth noting that employers in remote areas already benefit from a payroll tax exemption on certain fringe benefits paid to employees in remote areas. These benefits include housing, annual leave travel assistance, power and water subsidies and child education bursaries. For the purpose of payroll tax, a remote area in most cases is a place at least 100 kilometres from Perth and at least 40 kilometres from Albany, Bunbury, Geraldton and Rockingham. (b) Payroll tax relief - or indeed other forms of state tax relief - is not considered the most appropriate form of assistance for businesses affected by drought. This reflects the Government’s belief that providing tax exemptions to specific businesses would be difficult to target, would benefit primarily larger operations, would compromise the integrity of the tax system and would be administratively costly. Providing assistance through other means, such as grants and subsidies, is considered more appropriate in these circumstances. As such, the Government has recently announced an assistance package worth $6.8 million to aid farmers and rural communities that are struggling to cope with this year’s drought. This assistance package includes - direct assistance grants of up to $6 000 per eligible farm business, totalling $3.3 million; a special addition of $1.5 million to the farm water grants scheme; extra resources of $300 000 to extend rural counselling services; and a total of $1.6 million set aside to provide the state component of any new successful application to the national exceptional circumstances scheme. In addition to this package, the Government will consider requests from shires in the worst hit areas to announce water deficiency declarations - which declarations would trigger funding for line haulage of stock water for farmers whose nearest water source is greater than 40 kilometres from their farms - and the Government will bring forward capital works to provide funding injections to local economies. (2) (a) There are no stamp duty exemptions specifically related to drought-affected areas. However, taxpayers in these areas have access to - a general stamp duty exemption for the transfer of a family farm from a farmer to a family member - children, parents, siblings, aunts, uncles, spouses or former spouses - providing the family member intends to continue to use the farming property in the business of primary production. This exemption does not extend to farm contractors or rural businesses; a concession in respect of transfers of farming land, in that stamp duty is not chargeable on chattels transferred in conjunction with farming land, unlike transfers of land generally; a general stamp duty exemption for deeds extending the terms of repayment for amounts secured by mortgages; and a stamp duty concession for refinancing farm loans for farmers who wish to transfer their mortgages to take advantage of more competitive interest rates and loan packages with other financial institutions. A full refund of stamp duty applies when the amount financed with the new financier remains the same and the loan has been utilised for farming purchases. (b)-(c) The Government has recently announced an assistance package to aid drought-affected farmers and rural communities. See (1)(b).
(c) If not, why not?
I thank the member for some notice of this question. (1) (a) The Government is not considering granting payroll tax rate reductions to farmers, pastoralists and other rural businesses situated in drought-affected areas. Most farmers, pastoralists and other rural businesses do not pay payroll tax, most likely reflecting that their annual payroll is below the $675 000 payroll tax exemption threshold. It is worth noting that employers in remote areas already benefit from a payroll tax exemption on certain fringe benefits paid to employees in remote areas. These benefits include housing, annual leave travel assistance, power and water subsidies and child education bursaries. For the purpose of payroll tax, a remote area in most cases is a place at least 100 kilometres from Perth and at least 40 kilometres from Albany, Bunbury, Geraldton and Rockingham. (b) Payroll tax relief - or indeed other forms of state tax relief - is not considered the most appropriate form of assistance for businesses affected by drought. This reflects the Government’s belief that providing tax exemptions to specific businesses would be difficult to target, would benefit primarily larger operations, would compromise the integrity of the tax system and would be administratively costly. Providing assistance through other means, such as grants and subsidies, is considered more appropriate in these circumstances. As such, the Government has recently announced an assistance package worth $6.8 million to aid farmers and rural communities that are struggling to cope with this year’s drought. This assistance package includes - direct assistance grants of up to $6 000 per eligible farm business, totalling $3.3 million; a special addition of $1.5 million to the farm water grants scheme; extra resources of $300 000 to extend rural counselling services; and a total of $1.6 million set aside to provide the state component of any new successful application to the national exceptional circumstances scheme. In addition to this package, the Government will consider requests from shires in the worst hit areas to announce water deficiency declarations - which declarations would trigger funding for line haulage of stock water for farmers whose nearest water source is greater than 40 kilometres from their farms - and the Government will bring forward capital works to provide funding injections to local economies. (2) (a) There are no stamp duty exemptions specifically related to drought-affected areas. However, taxpayers in these areas have access to - a general stamp duty exemption for the transfer of a family farm from a farmer to a family member - children, parents, siblings, aunts, uncles, spouses or former spouses - providing the family member intends to continue to use the farming property in the business of primary production. This exemption does not extend to farm contractors or rural businesses; a concession in respect of transfers of farming land, in that stamp duty is not chargeable on chattels transferred in conjunction with farming land, unlike transfers of land generally; a general stamp duty exemption for deeds extending the terms of repayment for amounts secured by mortgages; and a stamp duty concession for refinancing farm loans for farmers who wish to transfer their mortgages to take advantage of more competitive interest rates and loan packages with other financial institutions. A full refund of stamp duty applies when the amount financed with the new financier remains the same and the loan has been utilised for farming purchases. (b)-(c) The Government has recently announced an assistance package to aid drought-affected farmers and rural communities. See (1)(b).
(1) (a) The Government is not considering granting payroll tax rate reductions to farmers, pastoralists and other rural businesses situated in drought-affected areas. Most farmers, pastoralists and other rural businesses do not pay payroll tax, most likely reflecting that their annual payroll is below the $675 000 payroll tax exemption threshold. It is worth noting that employers in remote areas already benefit from a payroll tax exemption on certain fringe benefits paid to employees in remote areas. These benefits include housing, annual leave travel assistance, power and water subsidies and child education bursaries. For the purpose of payroll tax, a remote area in most cases is a place at least 100 kilometres from Perth and at least 40 kilometres from Albany, Bunbury, Geraldton and Rockingham. (b) Payroll tax relief - or indeed other forms of state tax relief - is not considered the most appropriate form of assistance for businesses affected by drought. This reflects the Government’s belief that providing tax exemptions to specific businesses would be difficult to target, would benefit primarily larger operations, would compromise the integrity of the tax system and would be administratively costly. Providing assistance through other means, such as grants and subsidies, is considered more appropriate in these circumstances. As such, the Government has recently announced an assistance package worth $6.8 million to aid farmers and rural communities that are struggling to cope with this year’s drought. This assistance package includes - direct assistance grants of up to $6 000 per eligible farm business, totalling $3.3 million; a special addition of $1.5 million to the farm water grants scheme; extra resources of $300 000 to extend rural counselling services; and a total of $1.6 million set aside to provide the state component of any new successful application to the national exceptional circumstances scheme. In addition to this package, the Government will consider requests from shires in the worst hit areas to announce water deficiency declarations - which declarations would trigger funding for line haulage of stock water for farmers whose nearest water source is greater than 40 kilometres from their farms - and the Government will bring forward capital works to provide funding injections to local economies. (2) (a) There are no stamp duty exemptions specifically related to drought-affected areas. However, taxpayers in these areas have access to - a general stamp duty exemption for the transfer of a family farm from a farmer to a family member - children, parents, siblings, aunts, uncles, spouses or former spouses - providing the family member intends to continue to use the farming property in the business of primary production. This exemption does not extend to farm contractors or rural businesses; a concession in respect of transfers of farming land, in that stamp duty is not chargeable on chattels transferred in conjunction with farming land, unlike transfers of land generally; a general stamp duty exemption for deeds extending the terms of repayment for amounts secured by mortgages; and a stamp duty concession for refinancing farm loans for farmers who wish to transfer their mortgages to take advantage of more competitive interest rates and loan packages with other financial institutions. A full refund of stamp duty applies when the amount financed with the new financier remains the same and the loan has been utilised for farming purchases. (b)-(c) The Government has recently announced an assistance package to aid drought-affected farmers and rural communities. See (1)(b).
a special addition of $1.5 million to the farm water grants scheme; extra resources of $300 000 to extend rural counselling services; and a total of $1.6 million set aside to provide the state component of any new successful application to the national exceptional circumstances scheme.
extra resources of $300 000 to extend rural counselling services; and a total of $1.6 million set aside to provide the state component of any new successful application to the national exceptional circumstances scheme.
a total of $1.6 million set aside to provide the state component of any new successful application to the national exceptional circumstances scheme.
a concession in respect of transfers of farming land, in that stamp duty is not chargeable on chattels transferred in conjunction with farming land, unlike transfers of land generally; a general stamp duty exemption for deeds extending the terms of repayment for amounts secured by mortgages; and a stamp duty concession for refinancing farm loans for farmers who wish to transfer their mortgages to take advantage of more competitive interest rates and loan packages with other financial institutions. A full refund of stamp duty applies when the amount financed with the new financier remains the same and the loan has been utilised for farming purchases.
a general stamp duty exemption for deeds extending the terms of repayment for amounts secured by mortgages; and a stamp duty concession for refinancing farm loans for farmers who wish to transfer their mortgages to take advantage of more competitive interest rates and loan packages with other financial institutions. A full refund of stamp duty applies when the amount financed with the new financier remains the same and the loan has been utilised for farming purchases.
a stamp duty concession for refinancing farm loans for farmers who wish to transfer their mortgages to take advantage of more competitive interest rates and loan packages with other financial institutions. A full refund of stamp duty applies when the amount financed with the new financier remains the same and the loan has been utilised for farming purchases.
(1) (a) Will the Government grant significant payroll tax rate reductions to farmers and pastoralists and all rural businesses genuinely situated within such drought-affected shires to retain more rural jobs and enterprises and, thereby, country populations and infrastructure? (b) If not, why not? (2) (a) What stamp duty exemptions are currently available in drought-affected areas for farmers, farm contractors and rural businesses? (b) If no such significant relief is available, will the Government give serious and urgent consideration to such measures to assist these vital export-earning businesses to retain their competitiveness and viability? (c) If not, why not? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. (1) (a) The Government is not considering granting payroll tax rate reductions to farmers, pastoralists and other rural businesses situated in drought-affected areas. Most farmers, pastoralists and other rural businesses do not pay payroll tax, most likely reflecting that their annual payroll is below the $675 000 payroll tax exemption threshold. It is worth noting that employers in remote areas already benefit from a payroll tax exemption on certain fringe benefits paid to employees in remote areas. These benefits include housing, annual leave travel assistance, power and water subsidies and child education bursaries. For the purpose of payroll tax, a remote area in most cases is a place at least 100 kilometres from Perth and at least 40 kilometres from Albany, Bunbury, Geraldton and Rockingham. (b) Payroll tax relief - or indeed other forms of state tax relief - is not considered the most appropriate form of assistance for businesses affected by drought. This reflects the Government’s belief that providing tax exemptions to specific businesses would be difficult to target, would benefit primarily larger operations, would compromise the integrity of the tax system and would be administratively costly. Providing assistance through other means, such as grants and subsidies, is considered more appropriate in these circumstances. As such, the Government has recently announced an assistance package worth $6.8 million to aid farmers and rural communities that are struggling to cope with this year’s drought. This assistance package includes - direct assistance grants of up to $6 000 per eligible farm business, totalling $3.3 million; a special addition of $1.5 million to the farm water grants scheme; extra resources of $300 000 to extend rural counselling services; and a total of $1.6 million set aside to provide the state component of any new successful application to the national exceptional circumstances scheme. In addition to this package, the Government will consider requests from shires in the worst hit areas to announce water deficiency declarations - which declarations would trigger funding for line haulage of stock water for farmers whose nearest water source is greater than 40 kilometres from their farms - and the Government will bring forward capital works to provide funding injections to local economies. (2) (a) There are no stamp duty exemptions specifically related to drought-affected areas. However, taxpayers in these areas have access to - a general stamp duty exemption for the transfer of a family farm from a farmer to a family member - children, parents, siblings, aunts, uncles, spouses or former spouses - providing the family member intends to continue to use the farming property in the business of primary production. This exemption does not extend to farm contractors or rural businesses; a concession in respect of transfers of farming land, in that stamp duty is not chargeable on chattels transferred in conjunction with farming land, unlike transfers of land generally; a general stamp duty exemption for deeds extending the terms of repayment for amounts secured by mortgages; and a stamp duty concession for refinancing farm loans for farmers who wish to transfer their mortgages to take advantage of more competitive interest rates and loan packages with other financial institutions. A full refund of stamp duty applies when the amount financed with the new financier remains the same and the loan has been utilised for farming purchases. (b)-(c) The Government has recently announced an assistance package to aid drought-affected farmers and rural communities. See (1)(b).
(c) If not, why not?
I thank the member for some notice of this question. (1) (a) The Government is not considering granting payroll tax rate reductions to farmers, pastoralists and other rural businesses situated in drought-affected areas. Most farmers, pastoralists and other rural businesses do not pay payroll tax, most likely reflecting that their annual payroll is below the $675 000 payroll tax exemption threshold. It is worth noting that employers in remote areas already benefit from a payroll tax exemption on certain fringe benefits paid to employees in remote areas. These benefits include housing, annual leave travel assistance, power and water subsidies and child education bursaries. For the purpose of payroll tax, a remote area in most cases is a place at least 100 kilometres from Perth and at least 40 kilometres from Albany, Bunbury, Geraldton and Rockingham. (b) Payroll tax relief - or indeed other forms of state tax relief - is not considered the most appropriate form of assistance for businesses affected by drought. This reflects the Government’s belief that providing tax exemptions to specific businesses would be difficult to target, would benefit primarily larger operations, would compromise the integrity of the tax system and would be administratively costly. Providing assistance through other means, such as grants and subsidies, is considered more appropriate in these circumstances. As such, the Government has recently announced an assistance package worth $6.8 million to aid farmers and rural communities that are struggling to cope with this year’s drought. This assistance package includes - direct assistance grants of up to $6 000 per eligible farm business, totalling $3.3 million; a special addition of $1.5 million to the farm water grants scheme; extra resources of $300 000 to extend rural counselling services; and a total of $1.6 million set aside to provide the state component of any new successful application to the national exceptional circumstances scheme. In addition to this package, the Government will consider requests from shires in the worst hit areas to announce water deficiency declarations - which declarations would trigger funding for line haulage of stock water for farmers whose nearest water source is greater than 40 kilometres from their farms - and the Government will bring forward capital works to provide funding injections to local economies. (2) (a) There are no stamp duty exemptions specifically related to drought-affected areas. However, taxpayers in these areas have access to - a general stamp duty exemption for the transfer of a family farm from a farmer to a family member - children, parents, siblings, aunts, uncles, spouses or former spouses - providing the family member intends to continue to use the farming property in the business of primary production. This exemption does not extend to farm contractors or rural businesses; a concession in respect of transfers of farming land, in that stamp duty is not chargeable on chattels transferred in conjunction with farming land, unlike transfers of land generally; a general stamp duty exemption for deeds extending the terms of repayment for amounts secured by mortgages; and a stamp duty concession for refinancing farm loans for farmers who wish to transfer their mortgages to take advantage of more competitive interest rates and loan packages with other financial institutions. A full refund of stamp duty applies when the amount financed with the new financier remains the same and the loan has been utilised for farming purchases. (b)-(c) The Government has recently announced an assistance package to aid drought-affected farmers and rural communities. See (1)(b).
(1) (a) The Government is not considering granting payroll tax rate reductions to farmers, pastoralists and other rural businesses situated in drought-affected areas. Most farmers, pastoralists and other rural businesses do not pay payroll tax, most likely reflecting that their annual payroll is below the $675 000 payroll tax exemption threshold. It is worth noting that employers in remote areas already benefit from a payroll tax exemption on certain fringe benefits paid to employees in remote areas. These benefits include housing, annual leave travel assistance, power and water subsidies and child education bursaries. For the purpose of payroll tax, a remote area in most cases is a place at least 100 kilometres from Perth and at least 40 kilometres from Albany, Bunbury, Geraldton and Rockingham. (b) Payroll tax relief - or indeed other forms of state tax relief - is not considered the most appropriate form of assistance for businesses affected by drought. This reflects the Government’s belief that providing tax exemptions to specific businesses would be difficult to target, would benefit primarily larger operations, would compromise the integrity of the tax system and would be administratively costly. Providing assistance through other means, such as grants and subsidies, is considered more appropriate in these circumstances. As such, the Government has recently announced an assistance package worth $6.8 million to aid farmers and rural communities that are struggling to cope with this year’s drought. This assistance package includes - direct assistance grants of up to $6 000 per eligible farm business, totalling $3.3 million; a special addition of $1.5 million to the farm water grants scheme; extra resources of $300 000 to extend rural counselling services; and a total of $1.6 million set aside to provide the state component of any new successful application to the national exceptional circumstances scheme. In addition to this package, the Government will consider requests from shires in the worst hit areas to announce water deficiency declarations - which declarations would trigger funding for line haulage of stock water for farmers whose nearest water source is greater than 40 kilometres from their farms - and the Government will bring forward capital works to provide funding injections to local economies. (2) (a) There are no stamp duty exemptions specifically related to drought-affected areas. However, taxpayers in these areas have access to - a general stamp duty exemption for the transfer of a family farm from a farmer to a family member - children, parents, siblings, aunts, uncles, spouses or former spouses - providing the family member intends to continue to use the farming property in the business of primary production. This exemption does not extend to farm contractors or rural businesses; a concession in respect of transfers of farming land, in that stamp duty is not chargeable on chattels transferred in conjunction with farming land, unlike transfers of land generally; a general stamp duty exemption for deeds extending the terms of repayment for amounts secured by mortgages; and a stamp duty concession for refinancing farm loans for farmers who wish to transfer their mortgages to take advantage of more competitive interest rates and loan packages with other financial institutions. A full refund of stamp duty applies when the amount financed with the new financier remains the same and the loan has been utilised for farming purchases. (b)-(c) The Government has recently announced an assistance package to aid drought-affected farmers and rural communities. See (1)(b).
a special addition of $1.5 million to the farm water grants scheme; extra resources of $300 000 to extend rural counselling services; and a total of $1.6 million set aside to provide the state component of any new successful application to the national exceptional circumstances scheme.
extra resources of $300 000 to extend rural counselling services; and a total of $1.6 million set aside to provide the state component of any new successful application to the national exceptional circumstances scheme.
a total of $1.6 million set aside to provide the state component of any new successful application to the national exceptional circumstances scheme.
a concession in respect of transfers of farming land, in that stamp duty is not chargeable on chattels transferred in conjunction with farming land, unlike transfers of land generally; a general stamp duty exemption for deeds extending the terms of repayment for amounts secured by mortgages; and a stamp duty concession for refinancing farm loans for farmers who wish to transfer their mortgages to take advantage of more competitive interest rates and loan packages with other financial institutions. A full refund of stamp duty applies when the amount financed with the new financier remains the same and the loan has been utilised for farming purchases.
a general stamp duty exemption for deeds extending the terms of repayment for amounts secured by mortgages; and a stamp duty concession for refinancing farm loans for farmers who wish to transfer their mortgages to take advantage of more competitive interest rates and loan packages with other financial institutions. A full refund of stamp duty applies when the amount financed with the new financier remains the same and the loan has been utilised for farming purchases.
a stamp duty concession for refinancing farm loans for farmers who wish to transfer their mortgages to take advantage of more competitive interest rates and loan packages with other financial institutions. A full refund of stamp duty applies when the amount financed with the new financier remains the same and the loan has been utilised for farming purchases.
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