NSW Farmers president Xavier Martin.

NSW Farmers has welcomed the Federal Government’s decision to expand access to a key capital gains tax concession by lifting the small business threshold to $10 million, but is withholding congratulations.

NSW Farmers president Xavier Martin said the threshold move was a welcome signal the government had been listening to sector concerns.

“A lot of NSW farmers will welcome this with considerable relief.

“Updating the threshold recognises the scale, cost and capital intensity of agriculture today,” Mr Martin said.

But the said CGT doesn’t land in isolation.

“It lands on top of fuel, fertiliser, finance, regulatory and wage pressures already compressing farm businesses.

“This change matters.”

Mr Martin said the critical test for the full package of reforms remained intergenerational farm transfer, with the minimum 30 percent tax on inflation-adjusted gains still an issue for some farms looking to pass on the keys after 1 July 2027.

“Farming is a long-term, intergenerational business. The question is whether these changes make it easier to pass a farm to the next generation – that’s the measure we’ll apply before congratulating the Government,” he said.

NSW Farmers acknowledged the Treasurer’s commitment to consult with small businesses on the final design of the reforms and would engage constructively through that process.

“This is what constructive engagement looks like – and we intend to hold the Government to that standard as the detail is worked through,”

“Farmers have spoken with one voice on this. The threshold has moved. Now we need to make sure the full system supports continuity for the next generation.”

Senate committee chair defends witness selection

Meanwhile the chair of the Senate Economics Legislation Committee Victorian Labor Senator Lisa Darmanin has defended the selection of witnesses at its inquiry into the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 and a related bill in Sydney this week.

Neither the National Farmers Federation nor any other organisation representing farmers or agriculture was called to make a live submission at hearings on 15 and 16 June.

Senator Darmanin said not address whether the committee deliberately didn’t invite the National Farmers Federation to address the hearings nor why the NFF nor any other organisation representing the interests of agriculture was invited to the hearings.

Senator Darmanin said the inquiry is being conducted in the usual way, providing for public submissions, public hearings, and a report being tabled ahead of the next parliamentary sittings.

“It comes in addition to a Senate Select Committee on the Operation of the Capital Gains Tax Discount, which held three days of public hearings in February, and tabled its report in March.

“Inquiry witness lists are selected by the committee,” she said.

“We did so on the basis of their submissions to the inquiry, their participation in the previous inquiry, and their connection to the reform.

“All submissions will be considered as part of committee deliberations, regardless of whether they appear as witnesses at the inquiry or not.”

An NFF spokesperson told Sheep Central the peak farmer body expected after making a submission to the inquiry and representing a significant cohort of Australian businesses, that this would typically prompt an invitation.

Other sectors invited to appear included business industry groups, mining exploration, accountancy bodies, biotechnology/start-ups and the Australian Taxation Office.