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Learn about the exemption from land tax in NSW for land used dominantly for primary production activities, what you need to provide and how to apply.
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What is primary production land?
This is land used dominantly for one of the following purposes:
Maintaining animals for their natural increase, or to sell them or their bodily produce.
Cultivating crops to sell.
Keeping bees to sell honey.
Growing flowers, orchids or mushrooms to sell.
Commercial fishing and the commercial farming of fish or oysters.
Commercial plant nurseries, but not those whose main activity is maintaining plants for sale to the public.
Who can apply for the exemption
Your land may be eligible for the primary production land (PPL) exemption if it is:
zoned rural, rural residential or non-urban
used dominantly for primary production, and
you sell the resulting product.
The exemption is available even if someone who is not the owner:
uses the land for primary production, and
sells the produce derived from the primary production activity.
Commercial test for non-rural land
If land is not zoned as rural, rural residential or non-urban, its use must also meet extra commercial tests to be eligible for a PPL exemption. The primary production activity on the land must:
have a significant and substantial commercial purpose or character,
the level of activity is enough to conduct a business, and
be carried out for the purpose of profit on a continuous or repetitive basis regardless of whether a profit is made.
Use of land for the maintenance of horses
Land used for the maintenance of horses can receive the exemption if the horses are being maintained for:
their sale
the sale of their bodily produce, or
the sale of their offspring.
However, usually horses are maintained for the following non-exempt purposes:
horse-racing
recreational riding and/or riding sports, including polo
a riding school, or
horse agistment.
Watch video
This video provides an overview of the eligibility criteria, categories of primary production, mixed use land and the impacts of land that is zoned rural or non-rural.
Primary production is assessed based on activity undertaken on 31 December each year.
If you meet the eligibility criteria, you should lodge a land tax return by 31 March, or by the due date of your notice of assessment, with your supporting documents.
Supporting documents and information you need to supply
Your application must include documents that prove your primary production activity meets the eligibility requirements.
The information in the documents must cover all the years you are claiming the exemption for.
If another person uses the land, the owner is responsible for collecting the detailed information about that other person’s use of the land including details of non-primary production uses.
Documents can be in these formats:
PDFs
Images (JPG, PNG)
Word documents
Spreadsheets.
The documents and information we request change depending on the type of primary production activity.
Note
Open the headings below to view the documents you will be asked to provide for different primary production activities.
If you cannot provide a specific document listed, please provide information similar to the item listed.
Revenue NSW will review your application, including the documents you supplied.
We will write to you with our decision on your application and we will contact you if we need more information to support your claim.
If you have been issued with a notice of assessment prior to lodging your return, you must still pay by the due date as interest and penalty tax may be imposed on any overdue amounts.
If your exemption is approved you will be reassessed, and any payments made will be allocated to your new assessment or a refund will be issued if it results in a credit. Read more about how to request a refund.
How to object to our decision
If you are not satisfied with our decision to reject your exemption application and believe the legislation has been applied incorrectly, you can lodge a formal objection with Revenue NSW.
You must lodge the objection together with your reasons and supporting evidence within 60 days of the issue date of your notice of assessment.
If you receive a notice of investigation and believe you are, or have been, entitled to this exemption at any point in the last 5 years, you must respond to it by providing more supporting documents about the primary production activity on your land.
Tip
Before responding to a notice of investigation make sure you understand the supporting documents and information you will need to provide to us.
How to respond to a notice of investigation
You can submit your documents on Land Tax Online by following the steps below. You will need your land tax client ID and correspondence ID to log in to Land Tax Online.
Under the Taxation Administration Act 1996 we may impose penalties for providing misleading and/or false information, or for deliberately avoiding our requests for information.
Privacy policy
The information collected on the application form is necessary to see if you are entitled to an exemption.
The information may be provided to third parties with your consent, or as required, or permitted by law. We will correct or update your personal information at your request.
