Ballarat Farm Succession Planning Through Asset Transfers

Mulcahy & Co.

Type: Article
Knowledge level: Intermediate

Farm Table says:

Explains the advantages of transferring assets to a trust controlled by the next generation. Really interesting and unique look at how a trust structure for your farm can enable you to qualify for pension and aged care.

An article from professional services firm, Mulcahy & Sons, located in Ballarat, Vic.

They pose the following:

Why transfers your assets to a trust?

  • Certainty
  • Asset protection
  • Aged pension
  • Healthcare card
  • Aged care bond

The five-year rule: To stop people from transferring all assets from their name just to qualify for the above, Centrelink imposes a 5-year deemed ownership period.

Foregone or unpaid wages: There are two options available to reduce the value of the gift and therefore access benefits within five years. If the transferee (usually one or more children) worked on the family farm business during their life me, then the transfer may form what is called “unpaid wages”.

Granny flat rights: Where land is transferred to the younger generation and the older generation retain a right to live in the property rent-free for their life me, Centrelink will deem this “Granny Flat right” to have a certain value which will offset against the sale of the gift.


  • Setup cost
  • Ongoing fees
  • Tax Planning
  • Asset protection
2016 - Australia - Mulcahy & Co.
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