Passing the Farm to the Next Generation: Getting it Right

Article by Caitlin Riethmuller Byfields Associate

Transferring land to the next generation is one of the biggest challenges a farming family will face. Done properly, it can protect your legacy and avoid unnecessary costs. Done poorly—or too late—and it can result in family conflict, big tax bills, and reduced access to your land when it’s needed most. 

The two main hurdles to navigate are Capital Gains Tax (CGT) and Transfer Duty (stamp duty). With the right planning, these can often be reduced—or even avoided—through the many strategies available.  

Waiting too long to transfer the land can cause a number of issues—especially if it’s left to be dealt with through a Will. Some of these include: 

• Off-farm children may make claims against the estate. 

• Pre-CGT land may have its cost base reset to market value, creating future tax problems. 

• Inability to borrow against the land until the estate is finalised. 

• If the landholder loses capacity, the family may be stuck without the ability to make critical decisions or provide bank guarantees. 

Getting the ownership structure right from the start is just as important. Whether land is purchased in a personal name, trust, company, or super fund can make a huge difference down the track. It affects tax outcomes, succession flexibility, and access to concessions. 

The best time to plan is well before the land is transferred. This gives you time to set up structures, involve the next generation, and gradually hand over control. It also helps avoid conflict, ensures the farm remains viable, and allows you to make informed decisions—not rushed ones under pressure. 

Communication is key to a smooth transition. Open and honest conversations with all family members—whether they’re on the farm or not—help manage expectations and reduce the risk of disputes. Clear communication about roles, responsibilities, and long-term intentions ensures everyone is on the same page and gives the next generation the confidence to step up when the time comes. 

Byfields’ expertise enables strategies for transfers that other advisors believe are too complex or unachievable. 

Contact us today at www.byfields.com.au to learn how our succession planning services can benefit you, or join us for our free presentation plus Q & A at 11:00 AM on Wednesday, 27th August at the Dowerin Field Day, Site 91 on the football oval.