The Primary Production Land (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 more information.
Eligibility
Property that meets the eligibility criteria for any of the four categories below may be eligible for the primary production land classification:
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 forest practices plan under section 19 of the Forest Practices Act 1985.
How to apply
Use the Primary production land application.
Required for the application: you must provide relevant financial information including income tax returns, profit and loss statements and/or a business plan. Without that information your application cannot be considered.
It is essential that all questions about land ownership and the property's use are fully answered.
Partial use of land for primary production
Land tax may apply to a portion of the property not being used for primary production purposes, where land is used for both primary and non-primary production.
New owner of primary production classified land
When land classified as PPL transfers to a new owner, the classification is removed. New owners must re-apply for the PPL classification and demonstrate the property is still used for primary production.
Changes to the property
If a portion of land is split from the original property or the property is merged with another, the original property ceases to exist and a new property is created.
The new property is classified as ‘general land’ in accordance with the Land Tax Act 2000. You must apply for the PPL classification for the new property and demonstrate it is used as primary production land.
Important information
- Land may qualify for the PPL classification where that property 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 the 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.