Victorian Farmers Federation (VFF), Media Release, 13 October 2025

The Victorian Farmers Federation (VFF) has welcomed the Federal Government’s significant amendments to its proposed superannuation tax, describing the changes as a substantial improvement that will protect thousands of farming families from the worst impacts of the original policy.

VFF President Brett Hosking said today’s announcement represented a common-sense response to the sustained concerns raised by the agricultural sector over nearly two years. 

“It’s a common-sense outcome for a tax that never should have existed in its original form in the first place.”

“So much unnecessary concern and worry could have been avoided if they consulted with the industry before wheeling this out.” 

“Victorian farmers are breathing a sigh of relief. They faced the very real prospect of being forced to sell their land to pay tax bills on paper gains they had never actually realised.”

“The Government’s decision to tax only realised earnings, rather than unrealised capital gains, addresses the fundamental flaw in the original proposal that would have created impossible liquidity pressures for farming families,” Mr Hosking said.

Mr Hosking added the decision to index the $3 million threshold was equally important, preventing bracket creep from progressively capturing more family farms over time as land values naturally increased. 

The original proposal threatened over 3,500 self-managed superannuation funds holding farmland across Australia from day one, with thousands more at risk as property values rose. 

Many Victorian farming families structure their operations through SMSFs, allowing older farmers to lease land to the next generation while funding their retirement. 

“The VFF, working closely with the National Farmers Federation and our members, has consistently highlighted how this tax would undermine farm succession planning, with the next generation of farming families paying the price.”

“While some farmers will still face additional tax obligations under the revised policy, this is a vastly better outcome than the original proposal which would have set a hugely worrying precedent in our tax system.” 

“This is a great example of the power of VFF membership. When farmers speak with a united voice and present evidence-based arguments, governments listen,” Mr Hosking said.