Commonwealth Consolidated Acts

VETERANS' ENTITLEMENTS ACT 1986 - SECT 49A

             (1)  Subject to subsection (3), this Division applies to a person if:

                     (a)  at any time after 14 September 1992 but before the applicable cut-off date, the person, being then a qualifying farmer, transferred by way of gift to one, or more than one, eligible descendant (either solely to the eligible descendant or jointly to him or her and his or her partner):

                              (i)  his or her qualifying interest in the farm or farms in which he or she had such an interest; and

                             (ii)  all the qualifying interests that he or she had in relevant farm assets; and

                     (b)  the person, or (if the person is a member of a couple) the person or his or her partner:

                              (i)  has reached retirement age; or

                             (ii)  will reach retirement age before 1 July 2001; and

                     (c)  the total value for the purposes of this section of the farm or farms, and the relevant farm assets, referred to in paragraph (a) does not exceed $500,000; and

                     (d)  during the last 3 years before the transfer was completed, the eligible descendant or each of the eligible descendants:

                              (i)  had been actively involved with the farm or any of the farms; or

                             (ii)  would, in the opinion of the Commission, have been so involved but for exceptional circumstances beyond his or her control; and

                     (e)  if the person is a member of a couple--the person's partner does not have:

                              (i)  a legal estate or interest in the farm or farms referred to in subparagraph (a)(i) or in any other farm; or

                             (ii)  a legal interest in any relevant farm asset; and

                      (f)  the person satisfies the farmers' income test for the purposes of this Division.

Note 1:       For qualifying farmer , transfer , eligible descendant , qualifying interest , farm and relevant farm assets , see subsection 5P(1).

Note 2:       For retirement age see subsection 5Q(1).

Note 3:       For the value for the purposes of this section of a farm or relevant farm asset see subsection (4) and for actively involved with a farm see subsection (5).

Note 4:       For the farmers' income test see section 49J.

             (2)  Subject to subsection (3), this Division also applies to a person if:

                     (a)  at any time after 14 September 1992 but before the applicable cut-off date, the person, being then an eligible former partner of a qualifying farmer, transferred by way of gift to one, or more than one, eligible descendant of the farmer (either solely to the eligible descendant or jointly to him or her and his or her partner):

                              (i)  his or her qualifying interest in the farm or farms in which he or she had such an interest; and

                             (ii)  all the qualifying interests that he or she had in relevant farm assets; and

                     (b)  the person has reached retirement age or will reach retirement age before 1 July 2001; and

                     (c)  the total value for the purposes of this section of the farm or farms, and the relevant farm assets, referred to in paragraph (a) does not exceed $500,000; and

                     (d)  during the last 3 years before the transfer was completed, the eligible descendant or each of the eligible descendants:

                              (i)  had been actively involved with the farm or any of the farms; or

                             (ii)  would, in the opinion of the Commission, have been so involved but for exceptional circumstances beyond his or her control; and

                     (e)  the person satisfies the farmers' income test for the purposes of this Division.

Note 1:       For eligible former partner of a qualifying farmer , transfer , eligible descendant , qualifying interest , farm and relevant farm assets see subsection 5P(1).

Note 2:       For retirement age see subsection 5Q(1).

Note 3:       For the value for the purposes of this section of a farm or relevant farm asset see subsection (4) and for actively involved with a farm see subsection (5).

Note 4:       For the farmers' income test see section 49J.

             (3)  This Division does not apply to the person if:

                     (a)  immediately before the transfer, the eligible descendant, or one of the eligible descendants, referred to in paragraph (1)(a) or (2)(a) (as the case may be) had a qualifying interest in:

                              (i)  the farm or one of the farms referred to in paragraph (1)(a)(i) or (2)(a)(i); or

                             (ii)  any relevant farm asset; and

                     (b)  the eligible descendant had acquired the qualifying interest in the farm, or in the relevant farm asset, after 14 September 1997; and

                     (c)  the consideration, or part of the consideration, for the interest so acquired was the wages forgone by the eligible descendant while he or she was working as an employee on the farm or any of the farms.

Note:          For transfer , eligible descendant , qualifying interest , farm and relevant farm asset see subsection 5P(1).

             (4)  If a person transfers a qualifying interest that the person has in a farm or a relevant farm asset, then:

                     (a)  if paragraph (b) does not apply--the value for the purposes of this section of the farm or relevant farm asset is its value when the transfer is completed; or

                     (b)  if, immediately before the transfer by the person of his or her qualifying interest in the farm or relevant farm asset, the transferee had a qualifying interest in the farm or relevant farm asset--the value for the purposes of this section of the farm or relevant farm asset is its value when the transfer is completed less the value of the transferee's qualifying interest in it at that time.

             (5)  For the purposes of paragraphs (1)(d) and (2)(d), a person is taken to have been actively involved with a farm during a particular period if, during that period, the person:

                     (a)  has contributed a significant part of his or her labour to the development of the farm; or

                     (b)  has undertaken educational studies or training in a field that, in the opinion of the Commission, is relevant to the development or management of the farm enterprise.