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Primary production enterprise
Primary production enterprise means a business in Australia that consists of primary production.
For a primary production trust arrangement to qualify for the primary production concession, more than 70% of the net value of the asset of the trust (excluding the net value of the principal home of the farmer if it is owned by the trust and on the primary production land) must relate to assets used wholly or principally for the purpose of carrying on a primary production enterprise.
Primary production means:
- production resulting directly from the cultivation of land,
- the maintenance of animals or poultry for the purpose of selling them or their bodily produce, including natural increase,
- fishing operations, or
- forest operations,
- and includes the manufacture of dairy produce by the persons who produced the raw material used in that manufacture.
An asset means any property, including property outside Australia.
The principal home has the meaning given by subsection 5LA(1) of the VEA and subsection 5LA(2) of the VEA. The principal home of a person is generally the place in which they reside. In certain circumstances, however, the principal home of a person can be the place in which they formerly resided. The following property is regarded as part of the principal home.
- the residence itself (e.g. house, flat, caravan),
- permanent fixtures (e.g. stoves, built-in heaters, dish-washers, light fittings and affixed carpets),
- [glossary:curtilage:DEF/Curtilage] (i.e. two hectares or less of private land around the home where the private land use test has been satisfied, or all land held on the same title as the person's principal home where the extended land use test has been satisfied), or
- any garage, shed, tennis court or swimming pool used primarily for private purposes provided it is on the same title as the principal home.
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