It's the election campaign issue which is actually fake news say the major political parties, but that hasn't stopped rural Australia getting really twitchy about references to death duties.
Farming families are especially wary about any hint of estate taxes being unearthed 35 years after the Fraser Government ended an unpopular tradition of death and gift taxes dating back to before federation.
Recent rumours and social media commentary suggesting a Labor Government would reintroduce death taxes have been vehemently rejected as "a total lie" by Opposition leader, Bill Shorten.
At the same time, however, Labor last week rolled out its own scare campaign on death duties, highlighting Prime Minister' Scott Morrison's past refusal to rule out an inheritance tax during the Coalition Government's review of taxation strategies four years ago.
While more than half of all countries in the Organisation for Economic Co-operation and Development (OECD) have estate taxes, there has been no suggestion either side of Australian politics has considered death tax options in the lead up to the May 18 poll.
Plenty of people remember their neighbours, or their own families, forced to sell the farm because death duties had to be paid
- Trevor Whittington, Western Australian Farmers Federation
"Shorten has certainly ruled it out, but a lot of people worry about the reality of politics these days, particularly if a Labor government has to work with The Greens and buy its way through the Senate," said Western Australian Farmers Federation chief executive officer, Trevor Whittington.
"The Greens have long supported death duties."
"It's a real issue, and a sensitive issue, and it's certainly flying around here in the west.
"Farmland is considered an inter-generational asset, yet plenty of people remember their neighbours, or their own families, forced to sell the farm rather than pass it to their kids, because death duties had to be paid."
Victorian Farmers Federation president, David Jochinke agreed.
Crazy distraction
"Election campaigns tend to stir up a lot of craziness and scare tactics," he said.
"Distracting chatter about changing the tax system is the sort of issue that boils up as a big concern for farmers.
"Farming is a long term investment in expensive assets which are owned and managed over multiple generations.
"For many people the farm is not really yours to sell.
"It becomes a real fly in the ointment when people start talking about death taxes or similar tax system changes - they're effectively undermining confidence in family succession structures carefully planned to maintain the stability of a business which is asset-heavy, but cash flow-light."
Farmers genuinely worried any election campaign conversations about death taxes actually gave the idea credence.
Talk of death duties obviously creates a fair bit of concern, but I think most farmers also want to hear some solid guarantees on diesel rebates
- Peter Wilson, NSW Farmers
Central West NSW farmer, Peter Wilson, at Trangie, believed a more relevant pre-election discussion should be whether the current diesel fuel rebate could survive the next term of government unchanged.
"Any murmur about death duties obviously creates a fair bit of concern, but I think most farmers also want to hear some solid guarantees on diesel rebates for agriculture," said Mr Wilson, the NSW Farmers business, economics and trade committee chairman.
"Potential changes to superannuation rules and franking credits are also real issues worrying farming communities."
He understood federal treasury regularly reviewed the potential cost savings associated with abolishing or diluting the diesel fuel rebate, and even the Howard Government had seriously considered that budget saving option.
"It would not surprise me if death duties come up for similar regular discussion within treasury."
Estate tax support
In 2010 the Henry review of Australia's tax system needs by 2030 suggested "wealth transfer" taxes.
Other leading economists and major tax reviews conducted since the demise of death duties began in the 1970s have similarly supported estate taxes as an efficient revenue raising option, particularly if payroll taxes on business employment could be abolished.
Overseas, estate and inheritance taxes are as high as 55 per cent in Japan, with South Korea, France, Britain, USA, Spain, Ireland, Belgium and Germany all having death taxes above 30pc.
The average across the OECD is 15pc, but Australia and New Zealand are notable for being among the few developed countries without them.
RELATED READING
Canberra-based legal and constitutional writer, Crispin Hull, noted estate taxes had "a lot going for them".
"Even the governments of Liberal Party statesman, Robert Menzies, imposed them throughout his tenure," he said.
`Stupid' payroll taxes
On the other hand, state payroll taxes, which applied to businesses with employee wage bills above $1 million, were more "economically stupid" because they taxed employment rather than unearned inheritances.
"If you tax inheritances you reduce inequality which hinders the economy and society in general," he said.
NSW Farmers' Mr Wilson, said while people may eventually accept a bequest tax replacing other less effective taxes, farmers would need to see a genuinely high valuation ceiling applied before such duties applied to agricultural estates, and the threshold would have to be indexed to rise with inflation.
"I recall death duties in the 1970s catching a lot farmers of relatively modest means," he said.
"The valuation point at which the tax kicked in had not risen in step with inflation or rising asset values over the years.
"It's no surprise it's a topic rural communities are agitated about."
- Does this article interest you? Scroll down to the comments section and start the conversation. You only need to sign up once and create a profile in the Disqus comment management system for permanent access to all discussions.