So. You have spent decades building up the farm. Early mornings, late nights, dodgy weather, questionable government policies. And now you want to hand it over to your kids (or grandkids, or a sibling, or a niece) without giving half of it to the government in taxes.
Good news: in New South Wales, there is a legal way to do exactly that.
It is called the intergenerational transfer of rural land exemption, which sounds terrifying, but is actually pretty straightforward once someone explains it without a law degree.
That is what this article is for. Let us get into it.
⚠️ Quick Heads Up First: This is general information — not specific legal advice. Every family situation is different, every farm is different, and the rules can change. Read this to understand how it works, then call us and we will sort out the details for your specific situation.
First - What even is Transfer Duty?
Transfer duty (the tax formerly known as stamp duty, they renamed it but it is still the same annoying thing) is a government tax you pay when property changes hands in NSW.
On a rural property worth $1.5 million, you could be looking at around $67,000 in transfer duty. On a $2 million property, it climbs to around $95,000 or more.
That is a LOT of money to hand over to the government just because you decided to give your farm to your daughter instead of selling it to a stranger.
🎉 The Good News: If you are transferring a working farm to an eligible family member in NSW, you may be able to pay zero transfer duty. Not reduced. Not a concession. Zero. The exemption exists specifically for farming families doing exactly this.
Does Your Farm Qualify? The 'Is It Actually a Farm?' Test 🚜
Here is the first hurdle. The land has to be genuinely used for primary production, which is a fancy way of saying: is someone actually farming it and making money from it?
A paddock where a few horses wander around and eat grass does not count. A lifestyle property where you grow tomatoes for yourself does not count. We are talking about a real, commercial farming operation.
Here is what does count:
| What Counts | The No-Jargon Version | |
|---|---|---|
| 🌾 | Growing crops for sale | You grow stuff and actually sell it. Wheat, fruit, veg – whatever it is, it goes to market. |
| 🐄 | Raising livestock or selling animal produce | Cattle, sheep, chickens – or selling what comes out of them (wool, milk, eggs). Yes, eggs count. |
| 🐝 | Beekeeping for honey production | You have hives, bees do their thing, you sell the honey. Lovely. |
| 🌸 | Commercial plant nursery or specialty crops | Growing plants, mushrooms, orchids or flowers to sell as a proper business – not just a nice garden. |
| 🐟 | Fish or seafood farming | Aquaculture on the land with the right permits. If you are farming fish commercially, you are in. |
🚫 What Does NOT Count: A hobby farm. A “farm” that has not actually produced anything for sale in years. A property you are planning to turn into a housing estate the moment the ink dries. Revenue NSW has seen all of these — they are not easily fooled.
Two Rules About Timing – These Really Matter:
🕐 Rule 1 — Farming Before the Transfer: The land must be actively used for primary production by the current owner right up until the transfer. You cannot stop farming six months before, hand it over, and still claim the exemption.
🕑 Rule 2 — Farming After the Transfer: The person receiving the land must genuinely intend to keep farming it. If they are planning to sell it to a developer the following year, the exemption does not apply — and Revenue NSW may come back to collect the duty later if they find out.
Who Can Actually Receive the Farm? 👨👩👧👦
You cannot just hand the farm to your best mate and call it an intergenerational transfer. The rules are specific about who counts as an eligible family member.
| Who Can Get the Farm | Proof You Will Need | |
|---|---|---|
| 👨👩👧 | Your kids or stepkids | Birth certificate or adoption papers |
| 👶 | Your grandchildren | Birth certificates showing the family chain |
| 👫 | Your brother or sister | Birth certificates for both of you |
| 💍 | Your brother or sister-in-law | Your sibling’s marriage certificate |
| 🧒 | Your niece or nephew | Birth certificates showing the connection |
| 💑 | The spouse of any of the above | Marriage certificate |
| 🌳 | Any descendant of the owner | Documents showing the family relationship |
| 🏢 | A descendant shareholder (if land is in a company) | Company records and shareholder register |
📜 You Have to Prove It: Revenue NSW does not take your word for it. You need actual documents showing the family relationship. Birth certificates, marriage certificates, dig them out of that filing cabinet you have been ignoring for years.
What Do You Actually Need to Provide? 📁
Here is everything you will typically need. The good news is that Milana Law prepares the hard bits for you, you just need to gather your own documents.
| Document | What It Actually Is | |
|---|---|---|
| 📄 | Transfer document | We prepare this for you. You do not need to write anything in legalese. |
| 📋 | Exemption application form | Also prepared by us. We fill in the scary Revenue NSW forms so you do not have to. |
| 💰 | Evidence the land is farmed | Last financial year’s records — financial statements, BAS, sales invoices, receipts. Basically: show us the money (or the cows). |
| 🗒️ | Local Land Services Rates Notice | The document showing your land is classified as a rural or primary production property. If you pay rural rates — dig it out. |
| 👨👩👧 | Proof of family relationship | Birth certificates, marriage certificates — whatever proves you are actually related and not just friends who call each other family. |
| 🏢 | Company or trust records (if applicable) | If the land is owned by a company or trust, bring the paperwork. We will tell you exactly what we need. |
📝 Milana Law Does the Heavy Lifting: The transfer document and the exemption form — we prepare those for you. You are not expected to fill in Revenue NSW forms by yourself. That is literally what we are here for.
The FAQs Nobody Else Answers Properly 🙋
Q: Can a company transfer the farm to a family member? Yes, it is possible in certain situations, particularly where the family member is a descendant shareholder of the company. Company transfers are a bit more complex, so call us and we will work through the specifics with you.
Q: What if the land is held in a trust? Also possible, but it depends on the trust structure and the relationship between the trustee and the person receiving the land. Bring us the trust deed and we will take a look.
Q: What if only part of the land is farmed? The exemption may apply to the farmed portion only. Revenue NSW will look at each case individually. Partial exemptions are a thing, but you need proper advice to make sure you claim the right amount.
Q: What if the new owners want to sell eventually? The exemption requires genuine intent to continue farming at the time of transfer. If they sell in a few years, Revenue NSW could potentially revisit the exemption. This is worth discussing with us before proceeding.
Q: Do I really need a conveyancer or can I just Google my way through this? You can absolutely try. Revenue NSW applications that are incorrectly prepared often get rejected, meaning the full duty becomes payable, plus delays, plus the cost of fixing it. Milana Law’s fees are a fraction of the duty you could end up paying if something goes wrong. We have done this many times. You have not. Let us handle it.
Ready to Hand the Farm to the Kids? 🤝
We are not the kind of law firm that makes things more complicated than they need to be. When you come to us for a rural land transfer, here is what you get:
- ✅ An upfront assessment of whether you qualify, before you spend any money
- ✅ We prepare all documents and the Revenue NSW exemption application for you
- ✅ Clear advice on what financial evidence to gather
- ✅ Plain English at every step, no jargon, no confusion
- ✅ Electronic settlement via PEXA handled from start to finish
- ✅ We service all of rural and regional NSW, Hunter Valley, Central West, New England, Riverina and beyond
Farming is hard enough without the legal side making it harder. Let us make this one easy.
Contact Milana Law today – no jargon, no drama, no surprises.