EXCLUSIVE: A GOVERNMENT review of the young farmer stamp duty exemption scheme admits it may not be sufficient.
A revamped scheme, to be announced today, will continue to cap concessions at $13,070.
But the review found "it may be a one-off duty concession valued at up to $13,070 is not enough to entice potential young farmers to take on the significant investment, and accompanying risks, associated with starting a business".
The scheme was part of the State Government's election pledge to support young farmers.
The review comes as the Government today announces it will lift the threshold of stamp duty concessions for young farmers to farms worth $600,000. Previously the scheme exempted a young farmer buying $300,000 of land from paying $13,070 stamp duty.
But if they bought a farm worth more than $400,000 they paid $13,070 on the first $300,000 worth of land, plus $6000 on the remaining $100,000 - a total of $19,070.
The Victorian Farmers Federation had argued this was a "watered down" delivery of an election promise and called on the Government to fully deliver on its promise and remove the $400,000 threshold.
The Government had promised, pre-election to "exempt stamp duty on the first $300,000 of agriculture land". The promise did not refer to any cap on the total value of the farm.
This week, Treasurer Kim Wells said the stamp duty concessions were designed to remove potential barriers to young people who wanted to go farming.
At the end of the last financial year, 118 farmers had benefited from more than $900,000 in concessions.
The eligibility criteria would now be broadened by lifting the threshold from $300,000 to $600,000, with a phase out to $750,000, but the maximum individual concession would still be capped at $13,070, he said.
A spokeswoman for Mr Wells confirmed a concession of $13,070 would apply to properties valued up to $600,000 and would be phased down to $0 at $750,000 to "limit market distortion".
The review also ruled out allowing young farmers in family trust access to the scheme, as requested by the VFF.