Primary production land

​​​​​​​​​The Primary Production L​and (PPL) classification applies to land that meets the definition of primary production land under Section 7 of the Land Tax Act 2000.

Land tax is not payable on land that has a PPL classification as at 1 July of any given year.

Refer to the Primary production land guideline​​ for further information.


Where your property meets the eligibility criteria for any of the categories below it may be eligible to be classified as primary production land:

1. Land used substantially for the business of primary production. The business of primary production is the carrying on of any of one or more of the following activities in a business-like manner with a reasonable expectation of profit:  

  • cultivating land to sell the produce of the cultivation; 
  • maintaining animals or poultry for sale or selling their natural increase or bodily produce; 
  • keeping bees to sell their honey; 
  • commercial fishing and cultivating aquatic plants or animals, including the preparation for fishing and the storage and preservation of fish and fishing gear; or 
  • cultivating or propagating for sale plants, seedlings, mushrooms or orchids.

3. Land that is a permanent timber production zone within the meaning of the Forest Management Act 2013;
4. Land subject to a certified plan under the State Permanent Forest Estate.

​How to apply

To apply for the primary production land classification:

To ensure that an application can be fully and promptly considered, it is recommended that all questions about land ownership and its use are answered as thoroughly as possible and that income tax returns, profit and loss statements or a business plan are provided. ​

Partial use of land for primary production

If land with a PPL ​classification is also used for purposes other than primary production purposes, land tax may be payable on the proportion of the land which is being used for other purposes.​​

New owner of primary production classified land 

If a PPL classified property transfers to a new owner, the classification is removed because the new owner may not intend or be using the property for primary production purposes. New owners must apply for the PPL classification and demonstrate that the land continues to be used as primary production land. ​​​

Important information

  • Land may qualify for the PPL classification where it is leased and used by the lessee as primary production land.
  • Land does not qualify for PPL classification until it meets the definition of primary production land.
    For example, land  will not be entitled to PPL classification if it is used for the purposes of a hobby farm or similarly unprofitable activities. that is being prepared for the purpose of primary production will generally not qualify for PPL classification until the business of primary production commences.
  • The onus is on the taxpayer to prove to the satisfaction of the Commissioner that land is being used as primary production land. 


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