Farm Succession Planning: Rising Land Transfer Costs And What Farming Families Can Do Now

Future Accounting
Jan 13
5 min read

Updated: Jan 16

Why Farm Succession Planning is becoming more complex and more expensive

Farm succession planning in Victoria is becoming more complex and more costly, with recent changes to land transfer fees reinforcing a clear shift in how government revenue is being raised from farmland.

From 1 July, Victorian land transfer fees on properties valued above $3 million will more than double, increasing from $3,010 to $7,020. In addition, the standard registry (lodgement) fee for transferring land will rise by 47 per cent, from $103.80 to $152.50 per title.

While this increase may not appear significant on its own, it is an important signal for farming families. It confirms a broader policy direction that increasingly targets land and assets rather than income, directly affecting how and when farm succession planning in Victoria should be undertaken.

Rising land transfer fees set the tone for farming families

Although the dollar value of this increase is relatively modest, focusing solely on the amount misses the bigger picture.

What matters is what it signals. These changes again confirm the direction of government policy — raising revenue from land because it is visible, immobile, and easy to tax. For farming families, this is not about a single fee increase. It is about the tone and trajectory of policy settings that steadily increase the cost of owning, holding and transferring farmland.

This trend has direct consequences for farm succession planning in Victoria, where land values have grown significantly over time, often without corresponding increases in farm income.

Asset rich, income poor and increasingly targeted

Farmers did not ask for land values to escalate. In most cases, higher values reflect decades of ownership, consolidation of neighbouring blocks, and long-term stewardship, not increased profitability.

Yet those same values are now being used to justify higher fees and charges. Victorian Farmers Federation president Brett Hosking summed up the challenge well:

“The focus is more on assets, rather than income, which is hitting primary producers hardest, who are asset rich, but income poor.”

This approach does little to improve productivity or resilience. Instead, it gradually erodes balance sheets and increases pressure at key transition points particularly during succession.

Why succession planning is becoming more expensive

The most concerning impact of rising land transfer fees is on family farm succession.

Land transfer fees apply whether land is sold on the open market or transferred within a family as part of a genuine succession plan. Parents transferring land to children to secure the future of the farm are treated no differently.

For farm succession planning in Victoria, this means:

Higher costs to pass farms to the next generation
Increased pressure to delay succession
Greater risk of rushed or forced decisions later
Fewer options when health, age or circumstances change

Succession is not tax avoidance. It is how family farming survives. Rising transaction costs simply make that process harder.

A practical example of how multiple titles increase costs

Many Victorian farms are held across multiple land titles, often accumulated over generations. This structure can significantly increase costs during succession.

Example:

Farm value: $6 million
Structure: 15 separate land titles
Transfer: Parents transferring the farm to the next generation
Transfer method: All titles transferred together in one transaction

Under the new fee structure:

The value-based transfer fee increases from $3,010 to $7,020 (charged once per transaction)
The registry fee is charged per title

Cost comparison:

Registry fees before the increase:
15 × $103.80 = $1,557
Registry fees after the increase:
15 × $152.50 = $2,287.50

That is an additional $730.50, purely due to the number of titles — before factoring in stamp duty, capital gains tax, legal or valuation costs.

Many farms have far more than 15 titles.

A practical warning for farming families

Why the number of titles on your farm matters

For farm succession planning in Victoria, structure matters just as much as intent.

Registry fees apply per title, not per farm
Farms built up over generations often carry hidden cost exposure
Delaying succession usually means higher land values and higher fees
Poorly staged or reactive transfers can multiply costs
Future policy changes may further reduce flexibility

What appears to be a simple family transfer can quickly become expensive without careful planning.

The bigger question for farm succession planning in Victoria

These changes are expected to raise an additional $67.9 million, increasing total land registry and transfer fee revenue to $558.2 million by 2026–27.

This naturally raises an important question for farming families:

If fees can be increased this easily, what comes next?

Will thresholds remain static while land values rise?
Will eligibility for existing concessions be tightened?
Will additional fees be layered over current exemptions?
Will family transfers face further scrutiny?

Each change on its own may be manageable. Together, they point to increasing policy risk that must be considered in farm succession planning in Victoria.

Why relying on concessions alone is a risk

Many succession plans assume today’s concessions, thresholds and exemptions will still be available in the future. History shows that this is a risky assumption.

Concessions are policy settings, not guarantees. Governments rarely remove them overnight, but they do:

Freeze thresholds
Narrow eligibility
Introduce new fees
Reclassify transactions in ways that increase cost

What was affordable five years ago may not be affordable in five years’ time. Planning early preserves choice; waiting often removes it.

Using the Three P’s to guide farm succession planning

At Future Accounting, we help families approach farm succession planning in Victoria through three simple principles:

Preserve
Preserve the farm as a viable, productive asset by understanding how rising fees and policy changes affect long-term ownership.
Protect
Protect family relationships and the business by putting clear, deliberate structures in place that reduce conflict and uncertainty.
Prosper
Prosper by ensuring the next generation inherits a farm that is sustainable, flexible and positioned for future growth — not burdened by avoidable costs.

Next steps for farm succession planning

You don’t need to rush, but you do need to act with intent.

Now is the time to:

Review how your land is titled
Understand which concessions you currently qualify for
Stress-test your succession plan against rising costs
Identify opportunities to act while current rules still apply

Early planning creates options. Delay usually reduces them.

If you would like to review your farm succession plan or understand how these changes affect your family and farm, book an appointment with Future Accounting. You will also receive a copy of the 2026 Future Farming Playbook featuring key topics including farm succession to assist with making the next step towards a smooth and sustainable transition.

Disclaimer  

This article does not constitute financial advice and is for general information only. It does not take into account any individual’s personal objectives, situation or needs, and is not intended as professional advice. Any similarity to an individual’s personal circumstances and the examples provided in this article is purely coincidental. Any person acting upon such information without receiving specific advice, does so entirely at their own risk.  

Authorisation under an Australian Financial Services Licence (AFSL) is not required in the provision of this article and the author plus Future Accounting Group Pty Ltd is not acting in its capacity as an Australian Financial Services Licence holder 

Liability limited by a scheme approved under professional standards legislation.