An exemption from land tax may be granted where the Commissioner is satisfied that land is used for the business of primary production.

Conditions which must be satisfied for exemption to apply

The criteria used in assessing a primary production exemption vary depending on whether or not the land is situated in the defined rural area of the State.

The defined rural area consists predominantly of the greater metropolitan areas of Adelaide and Mount Gambier. Metropolitan Adelaide covers an area approximately from Willunga, south of Adelaide, to Gawler, north of Adelaide, and from the coastline in the west to the inner Mt Lofty Ranges in the east.

Metropolitan Mount Gambier covers the majority of the City of Mount Gambier council area.

Please contact RevenueSA on (08) 8226 3750 and select option 2 if you are unsure whether your property lies inside or outside of the defined rural area.

The following general conditions apply regardless of where the land is situated:

  • the land must be 0.8 hectare or greater in area; and
  • the Commissioner must be satisfied that the land is used wholly or mainly for the business of primary production.

For the purpose of these criteria, these definitions apply:

business of primary production” means the business of agriculture, pasturage, horticulture, viticulture, apiculture, poultry farming, dairy farming, forestry or any other business consisting of the cultivation of soils, the gathering in of crops, the rearing of livestock or the propagation and harvesting of fish or other aquatic organisms and including the intensive agistment of declared livestock.

declared livestock” means cattle, sheep, pigs or poultry.


Land outside the defined rural area, that is, land outside metropolitan areas

Only the general conditions above need to be satisfied in order to gain a primary production exemption from land tax where the land is situated outside the defined rural area.

Where the Valuer-General has applied an eligible land use code to the land, and that land satisfies these general conditions, an automatic exemption from land tax will be applied.

Land inside the defined rural area, that is, land inside metropolitan areas

In addition to the general conditions above, any one of the following additional conditions must be met in order to gain a primary production exemption from land tax for land within the defined rural area:

  • The sole owner is a natural person who is engaged on a substantially full-time basis (either on their own behalf or as an employee) in a relevant business.
  • The land is owned jointly or in common by 2 or more natural persons at least one of whom is engaged on a substantially full-time basis (either on their own behalf or as an employee) in a relevant business and any other owner who is not engaged is a relative of an owner engaged.
  • The land is owned solely, jointly or in common by a retired person and the following conditions are satisfied:
    • the retired person was, prior to their retirement, engaged on a substantially full-time basis (either on their own behalf or as an employee) in a relevant business;
    • the co-owner or co-owners of the land (if any) are relatives of the retired person; and
    • a close relative of the retired person is currently engaged on a substantially full-time basis (either on their own behalf or as an employee) in a relevant business.
  • The land is owned solely or by tenancy in common by the executor of the will, or the administrator of the estate, of a deceased person and the following conditions are satisfied:
    • the deceased person was, prior to their death, engaged on a substantially full-time basis (either on their own behalf or as an employee) in a relevant business;
    • the co-owner or co-owners of the land (if any) are relatives of the deceased person; and
    • a close relative of the deceased person is currently engaged on a substantially full-time basis (either on their own behalf or as an employee) in a relevant business.
  • The land is owned by a company, or by two or more companies, or by a company or companies and one or more natural persons, and the main business of each owner is a relevant business.
  • The land is owned by a company and one of the following conditions is satisfied:
    • a natural person owns a majority of the issued shares of the company and is engaged on a substantially full-time basis (either on their own behalf or as an employee) in a relevant business;
    • 2 or more natural persons own in aggregate a majority of the issued shares of the company and each of them is engaged on a substantially full-time basis (either on their own behalf or as an employee) in a relevant business; or
    • 2 or more natural persons who are relatives own in aggregate a majority of the issued shares of the company and at least one of them is engaged on a substantially full-time basis (either on their own behalf or as an employee) in a relevant business.

For the purpose of these criteria, these definitions apply:

relevant business” - a business is a relevant business in relation to land used for primary production if:

  • the business is a business of primary production of the type for which the land is used or a business of processing or marketing primary produce; and
  • the land or produce of the land is used to a significant extent for the purpose of that business.

close relative” - a person is a close relative of another if:

(a) they are spouses or domestic partners; or

(b) one is a parent or child of the other; or

(c) one is a brother or sister of the other.

relative” - a person is a relative of another if:

(a) they are spouses or domestic partners; or

(b) one is an ascendant or descendant of the other, or of the other’s spouse; or

(c) one is a brother or sister of the other or a brother or sister of the other’s spouse; or

(d) one is an ascendant or descendant of a brother or sister of the other or of the other’s spouse.

domestic partners” – a person is the domestic partner of a person if he or she lives with the person in a close personal relationship as a couple.

close personal relationship"- means the relationship between two adult persons (whether or not related by family and irrespective of their gender) who live together as a couple on a genuine domestic basis, but does not include:

(a) the relationship between a legally married couple; or

(b) a relation where one of the persons provides the other with domestic support or personal care (or both) for fee or reward, or on behalf of some other person or an organisation of whatever kind.

See the land tax exemptions, waiver or relief: where you use the land for primary production page for more information.

Application for exemption

Please complete an online Application for Land Tax Exemption or Relief form including any supporting documentation.