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Coalition vows to scrap Labor capital gains tax changes, citing harm to farmers, generational farm transfers and agricultural productivity

Coalition pledges to scrap Labor’s capital gains tax changes, arguing they unfairly burden farmers, threaten generational farm transfers, and risk agricultural productivity and regional Australia’s economic stability.

By news@gippsland - 21st May 2026 - Back to News

A Coalition government will scrap Labor's capital gains tax changes to protect Australian farmers from a broken promises Budget. Leader of The Nationals Matt Canavan said a future Coalition government would immediately stop all of Labor's bad taxes, including changes made to the capital gains tax, which will also impact farmers who were not made exempt.

Farming leaders stress need for generational asset transfer, warning higher taxes could undermine family farms, threaten productivity, and risk national food production stability across Australia

Farm tax warning

Senator Canavan said, "Returns for Australian farmers are skewed towards capital gain, not income, and so any increase in the taxation of capital gains is going to hit Australian farmers the hardest. Given that Australian farmers make most of their returns via capital gains, Labor's broken promises Budget would be the biggest tax grab launched on Australian farming in history."

"It means Australian farmers would face one of the highest taxes in capital gains in the world, only beaten by Denmark and Chile. That's why a Coalition government will scrap all of Labor's planned taxes, including discretionary trusts, as well as capital gains tax, which will also impact farmers who were not made exempt, and negative gearing," he said.

Member for Mallee Dr Anne Webster said Labor's wasteful spending on things like net zero was not helping regional Australia and only adding to increased taxes. "A future Coalition government will dump net zero and stop Labor from ripping up prime agricultural land. We will also ensure Labor's changes to trusts and capital gain tax, as well as negative gearing, never see the light of day."

Tax change criticised

Knights Norfolk accountant Peter Knights described the capital gains tax changes to bring pre-1985 assets in as subject to CGT as 'underhanded'. "These assets were previously exempted for good reason, with many farm families suffering the impacts of the probate regime in the 1960s and 1970s on the same assets. CGT has a death tax effect as often beneficiaries receive assets when someone dies, invariably sell or transfer, triggering CGT, so the capital gains tax is without a doubt a death tax."

"With generational farms there has always been the need to maintain the working asset in the most productive hands, yet no proceeds are generated on transfer of land internally to pay any tax. We cannot see the return of similar circumstances to the disastrous effects that probate had on the farming business a generation ago," Mr Knights said.

Farm transfer concerns

Mr Knights also said, "Whilst small business CGT concessions remain unchanged in this Budget, the eligibility rules are also unchanged for 20 years and fast losing relevance and effect to ensure families stay farming. If nothing else these concessions need modernising."

"From a farming industry point of view, we have to make sure we can take assets through to the next generation, to those most capable of enterprising, leveraging assets and hard work, producing for the benefit of everyone else."

"When times are tough, traditionally, family farms still show up, but corporate farming must answer to shareholders. This is a productivity issue. If we increase tax barriers to transfer of farmland, it puts that business at risk and stability of food production at risk," he concluded.

Pictures from Agriculture Victoria Facebook page.

Source: http://gippsland.com/

Published by: news@gippsland.com

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  Melina Bath criticises Allan Labor government for halting police station maintenance, citing $50 million budget cuts, unsafe conditions, overgrown grounds, broken lighting and delayed repairs jeopardising staff and public safety.
• Melina Bath criticises Labor government, calling Myki's delayed tap-and-go rollout a "mythical unicorn," outdated and incompatible
  Victoria's long-promised tap-and-go public transport system has been delayed until 2028, leaving commuters, especially in regional areas, still reliant on outdated Myki cards and paper tickets
• Carbon Calculator Events for farm emissions, accounting, and carbon farming insights for farmers
  Attend the free Carbon Calculator Events on 28 October and 11 November 2025 in Traralgon to learn carbon farming, accounting, and estimate your farm's emissions footprint. Registration required.
• Darren Chester criticised Labor budget for cutting agriculture, pest control funding and regional infrastructure, impacting food security
  Federal Budget criticised for cutting agriculture funding by $190 million, reducing drought and pest programs, and failing to invest in food security, biosecurity and regional infrastructure, according to Darren Chester.
• Melina Bath condemns Labor government for recycled road funding spin and failure to deliver real investment
  Melina Bath has accused the Allan government of recycling old road funding announcements, labelling them propaganda and demanding genuine investment to address the worsening condition of regional Victoria's neglected roads.
• Call to fast-track National Food Security Strategy amid uncertainty, urging stronger support for farmers, supply chains and critical agricultural inputs
  Calls are growing to fast-track a National Food Security Strategy, linking food and fibre security to national security amid global supply chain risks and input dependencies.
• Melina Bath launches e-petition urging Labor to enforce gun laws properly and protect law-abiding firearm owners in Gippsland
  Eastern Victoria MP Melina Bath and firearm owner Ryan Weeratunge launch e-petition urging Labor to enforce existing gun laws, avoid rushed changes, and consult law-abiding owners to ensure community safety.
• Darren Chester accuses Victorian Labor of endangering Gippslanders by delaying Mallacoota-Genoa road upgrades
  Federal Member Darren Chester warns Victorian Labor’s inaction on Mallacoota-Genoa Road, despite $10 million funding, endangers Gippslanders, leaving critical safety upgrades delayed and road conditions increasingly unsafe.
• Tim Bull says kangaroo overpopulation devastates farms, with permits insufficient to protect crops and livelihoods
  Gippsland farmers face severe crop damage from exploding kangaroo populations. MP Tim Bull urges urgent permit reforms to allow practical, case-by-case management, protecting livelihoods and ensuring ongoing food production.
• West Gippsland CMA hosts free sustainable farming workshops with local landcare groups from September 2025 to March 2026
  West Gippsland CMA is hosting free farm field days September - March, showcasing sustainable agriculture, carbon farming, and local expertise. Workshops cover soil health, biodiversity, biofertilizers, and agribusiness opportunities.
• East Gippsland hosts Youth Agritech Expo showcasing farming futures and career pathways for young people on 17 September 2025
  East Gippsland will host the Youth Agritech Expo, offering farm tours, hands-on experiences, and showcasing agricultural career pathways, technology, and innovation to inspire the next generation and build a skilled workforce.
• Albanese government criticised for unfair Australia-EU trade deal undermining farmers and dairy producers’ rights
  The Albanese government’s Australia-EU trade deal is criticised for weak market access, unfair geographic restrictions, and disadvantageous Australian farmers, particularly dairy and red meat producers, according to industry leaders.
• West Gippsland CMA hosts hands-on workshop 'Carbon Farming - Know your number' at Leongatha office on 24 March 2026
  Join local farmer Nick Dudley for a free, hands-on workshop in Leongatha on 24 March to calculate farm emissions, use carbon calculators, and explore productivity improvements. Registration required.
• East Gippsland Agricultural Sector Advisory Committee welcomes new members to strengthen engagement with farming
  East Gippsland's Agricultural Sector Advisory Committee welcomed new members, enhancing council's connection with farming communities while tackling key priorities like renewable energy, drought resilience, mental health, and pest animal challenges.
• Danny O’Brien says Nationals and Liberals’ plan cuts waste, taxes and boosts regional investment
  Danny O’Brien says Nationals and Liberals’ economic plan aims to cut waste, reduce taxes, ease cost pressures and restore investment in Gippsland services and infrastructure.
• Melina Bath condemns Allan government’s ‘land grab,’ opposing farmland seizure before environmental approvals complete
  The Allan Labor government passed laws allowing energy companies to compulsory acquire farmland before approvals, prompting Nationals’ Melina Bath to condemn the "land grab" and call for proper consultation and safeguards.
• Local community groups invited to book appointments for Baw Baw Shire minor capital grants by 29 May 2026
  Baw Baw Shire invites community groups to apply for minor capital works grants, supporting local facility upgrades, inclusion projects, and equipment, with appointments now open for 2026 submissions.
• Nationals pledge to restore Parentline funding, criticise Labor's decision to axe vital family counselling service for Gippslanders
  The Nationals vow to reinstate Parentline funding if elected, condemning Labor's cut to the vital family counselling service that supports Victorian parents, particularly in regional communities facing limited access to services.
• Tim Bull says firewood shortage worsened by Labor policies amid abundant bush timber
  Tim Bull says Labor’s native timber shutdown has caused firewood shortages in East Gippsland, despite record bush fuel loads, urging practical policy changes to reduce fire risk and supply timber responsibly.
• Danny O’Brien says July-September 2025 data shows Labor continues failing Gippsland’s critical emergency response
  Ambulance Victoria data shows Gippsland response times well below targets, with urgent calls for the Allan Labor government to improve staffing, resources, and performance to protect regional communities.
• Melina Bath says Latrobe Valley has lost police resources under Labor despite rising crime and reduced officer numbers across the region
  Melina Bath says Victoria has fewer police under Labor, with Latrobe Valley losing officers amid rising crime and calls for stronger recruitment and policing reforms.
• Crime in Victoria surges to record highs under Allan Labor, leaving communities less safe, says Tim Bull
  Crime in Victoria has reached record levels under the Allan Labor government, with rising offences and family violence, police under-resourced, and weakened laws leaving communities increasingly unsafe, says Tim Bull.
• CFA faces critical staffing shortages in Gippsland as Labor government fails to act before dangerous fire season
  A new report reveals serious CFA staffing shortages in Gippsland, with vacancies, fatigue, and leadership gaps risking slower responses this dangerous fire season. Labor must act urgently.
• Bass Coast Shire Council adopts new Rating Strategy, lowering farm rates and modernising fair valuation system
  Bass Coast Shire Council adopts new Rating Strategy, lowering farm rates, increasing vacant land differential, introducing pensioner and first-homeowner rebates, and aligning Rural Land Management reforms with biodiversity and community feedback.
• Bass Coast Shire Council adopts new Rating Strategy, lowering farm rates and modernising fair valuation system
  Bass Coast Shire Council adopts new Rating Strategy, lowering farm rates, increasing vacant land differential, introducing pensioner and first-homeowner rebates, and aligning Rural Land Management reforms with biodiversity and community feedback.
• Pip Courtney brings National Agricultural insights to Orbost Show’s Far East Victoria Landcare Expo
  ABC Landline presenter Pip Courtney was keynote at the Orbost Show Landcare Expo, sharing agricultural insights, promoting sustainable farming, soil health, and collaboration between producers, Landcare groups, and regional communities.
• Martin Cameron says community safety has declined under Labor amid rising crime and 1500 Victoria Police vacancies
  Nationals and Liberals pledge 3,000 extra Victoria Police officers and restored station hours under Safer Communities Plan, addressing regional crime concerns, vacancies, and policing shortages across Latrobe Valley.
• Future of Orbost Project strengthens water access, supporting agricultural innovation and long-term regional growth
  The Future of Orbost Project supports farmers by clarifying water availability, facilitating licence transfers, and building resilience, driving innovation, productivity, diversification, and sustainable long-term growth in East Gippsland.
• Drouin Picnic Racing Club receives $13,519 upgrade boost through Allan Labor government's Regional Customer Facilities Program
  Drouin Picnic Racing Club will receive $13,519 to upgrade facilities and enhance race day experiences, part of the Allan Labor government's $730,000 investment improving regional racing venues statewide.
• Parliament petition urges Allan government to cancel Delburn Wind Farm amid strong community opposition
  A parliamentary petition opposing the Delburn Wind Farm has gathered more than 2,800 signatures, citing concerns about bushfire risk, costs, community consultation and impacts on nearby residents.
• Victorian Auditor-General warns Gippsland faces energy insecurity amid Labor’s mismanaged renewable energy transition
  Victorian Auditor-General warns Gippsland faces energy insecurity as Labor mismanages the renewable energy transition, delaying projects, electricity reliability, raising prices, causing gas shortages, and threatening jobs and households.
• Gippsland students return to classrooms rated poor or below average, exposing Labor’s neglect of regional schools, says Danny O'Brien
  As Gippsland students return to school in 2026, 18 regional schools are rated poor or below average, highlighting Labor’s neglect and urgent need for infrastructure investment, says Danny O’Brien.
• Baw Baw Shire awards over $109,000 in community grants supporting 13 groups’ minor capital work projects
  Baw Baw Shire Council has awarded over $109,000 in Community Grants to 13 local groups, supporting minor capital works that improve facilities, sustainability, and community wellbeing across the shire.
• West Gippsland CMA celebrates 25 years of sustainable irrigation, transforming Gippsland farms, saving water and protecting local waterways
  West Gippsland CMA's Sustainable Irrigation Program celebrates 25 years, with 1,200 projects saving 47 gigalitres annually, enhancing farm productivity, protecting waterways, and expanding beyond the Macalister Irrigation District.
• Victorian Agency for Health Information data shows ambulance services declining due to Labor's under‑resourcing, mismanagement and denial
  The latest data shows Victoria’s ambulance service declining, with fewer than 64% of Code 1 responses within 15 minutes, highlighting regional delays, under‑resourcing, and mismanagement under the Allan Labor government.
• Latrobe unites to tackle gambling harm during awareness week: 'Set Before You Bet' 2025
  Latrobe City Council is urging residents to take part in Gambling Harm Awareness Week (27 Oct - 2 Nov) and "Set before you bet" by learning to recognise signs and reduce gambling harm.
• Baw Baw Council and community oppose large-scale solar, battery projects threatening prime farmland and farming livelihoods
  Baw Baw Council and community express strong concerns over poorly sited solar and battery projects threatening prime farmland, seeking transparency, consultation, and protection of local farming livelihoods and regional character.
• Auditor-General report criticises Victoria’s timber shutdown, citing job losses, insecure work and failed transition planning
  Auditor-General report criticises Victoria’s native timber shutdown, highlighting failed transition, job insecurity, and ongoing regional economic harm under the Allan government’s policy.
• Danny O'Brien welcomes progress on Sealers Cove track repairs but slams years of Labor delays at Wilsons Prom
  Danny O'Brien welcomed long-overdue progress on Sealers Cove track repairs at Wilsons Prom but criticised Labor for years of delays, saying Gippsland deserves timely investment in vital tourism infrastructure and facilities.
• Darren Chester condemned the Bill as unsupported, stripping veterans’ appeal rights and imposing a 20-year limit
  Coalition and crossbench Senators oppose the Bill after overwhelming veteran backlash, with Chester urging its abandonment, arguing it strips appeal rights and distracts from addressing key Royal Commission recommendations.
• Martin Cameron urged Yallourn Power Station operator to extend its life beyond 2028, warning closure risks Victoria’s electricity supply and local jobs
  Martin Cameron has backed the Coalition’s 10-year economic plan for Victoria, aimed at restoring fiscal discipline, achieving a cash surplus by 2032, reducing debt, cutting taxes, and boosting essential services.
• Peri-urban councils warn Gippsland housing crisis threatens productivity and federal economic ambitions
  Peri Urban Councils Victoria warns soaring prices and falling approvals are hurting productivity, urging federal and state governments to fund infrastructure reforms to unlock peri-urban housing supply and ease affordability pressures.
• Gippsland CFA volunteers still wait for critical fire station upgrades amid $55M Labor funding cuts
  Gippsland CFA volunteers face years-long delays for safe, modern fire stations as Labor cuts $55 million, reducing equipment, compensation, and infrastructure, putting communities at risk and demanding urgent funding.
• Baw Baw Shire Council encourages community groups to apply for 2026‑2027 grants supporting projects and minor capital works
  Baw Baw Shire Council’s 2026‑2027 Community Grants Program supports not-for-profit groups with funding for projects up to $5,000 and minor capital works up to $10,000, promoting thriving, sustainable communities.
• Darren Chester criticised government for lacking program details, calling for clarity on eligibility and farmer access
  Calls intensify for government to release details of interest-free loan scheme and ensure farmers are included amid fuel crisis and rising agricultural cost pressures.
• Victoria’s crime crisis worsens as police numbers fall, offences rise, and station hours are reduced under Labor government
  Victoria’s crime crisis worsens under Labor with 368 fewer police, rising offences, unsolved cases, reduced station hours, and retail theft surging, prompting calls for proper resourcing and crime prevention.
• Melina Bath criticises politicised VEAC, failing land management, while $1.4M could fund bushfire prevention, environmental services
  Melina Bath warns Victorian hunters and anglers against reduced services as Labor pushes VFA-GMA merger, urging proper funding, training, and enforcement to protect compliance, sustainability, and regional outdoor traditions.
• Free Gippsland workshop with Tony Evans on maximising dairy effluent through composting and sustainability
  Gippsland dairy farmers are invited to a free workshop with Tony Evans on effluent management, exploring composting, fermentation, and biogas to boost sustainability, save money, and reduce reliance on external nutrients.
• Danny O'Brien says Gippsland roads among state's most dangerous after years of neglect under Allan Labor government
  Danny O'Brien says new AusRAP data shows many Gippsland roads are unsafe after years of Labor neglect, criticising the government for lowering speed limits instead of properly fixing deteriorating roads.
• Over 350 attended Youth Agritech Expo, experiencing hands-on innovation and future opportunities in modern farming industry
  More than 350 people joined East Gippsland's Youth Agritech Expo, where students explored hands-on agricultural innovations, from drones to driverless tractors, sparking fresh excitement about farming's high-tech, diverse, and innovative future.
• Tim Bull demands end to brumby shooting as pest and weed control programs face cuts
  Gippsland East MP Tim Bull has urged the state government to scrap its costly brumby shooting program, criticising cuts to pest and weed control services vital for farmers and rural communities.
• CFMEU corruption report exposes organised crime links, $15B project blowouts, prompting Melina Bath to demand Labor accountability
  The ‘Rotting from the Top’ report exposes serious CFMEU corruption, links to organised crime, and $15 billion in project blowouts, prompting Nationals MP Melina Bath to demand Allan Labor government accountability.
• Latrobe Valley still waiting for Commonwealth Games Legacy Housing, four years after Labor promise
  Regional Victorians miss hosting Commonwealth Games athletes as promised Morwell legacy housing remains unbuilt. Nationals MPs Martin Cameron and Melina Bath criticize Allan Labor government’s broken promises amid worsening public housing crisis.
• Albanese government’s plan undermines veterans’ rights and attacks defence honours tribunal independence
  Albanese Government’s proposed changes to the Defence honours appeal system would restrict veterans’ rights, weaken Tribunal independence, and impose strict time limits on recognition of service, drawing strong backlash and Coalition opposition.