Labor has refused to rule out forcing farmers to pay tax on the unrealised capital gains of their farm, if the property is held in a self-managed super fund (SMSF).

In Parliament House last week, Agriculture Minister Julie Collins confirmed that farmers would have to find the cash to pay the tax even if they have a failed season with no income.

"Minister Collins’ response was really quite chilling. She clearly had no understanding or concern of the enormous financial hardship that this decision will make for so many farmers.

Farmers have been using SMSF for succession planning and these changes will mean many farms will have to get sold to pay tax on unrealised gains." Federal Member Mark Coulton speaks from the heart.