Land owned and used for the business of primary production may be eligible for an exemption from land tax.

What must the land be used for?

The land must be wholly or mainly used for the business of primary production.

What is the ‘business of primary production’?

The ‘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;
  • propagation and harvesting of fish or other aquatic organisms; and
  • intensive agistment of declared livestock (“declared livestock” means cattle, sheep, pigs or poultry).

Does the land have to be a certain size?

To be eligible for this exemption, the land must be 0.8 hectare or greater in area. This may be one piece of land, or the total of a number of pieces of adjoining land which are all used for the primary production business.

Is the exemption only applicable to land located outside the metropolitan area?

No, a primary production exemption may apply to any land within South Australia. However, different eligibility criteria applies depending on where the land is located.

For the purpose of this exemption, land can be located either within the defined rural area, or outside the defined rural area.

What is the defined rural area?

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

Land located outside defined rural area

What criteria must be met?

The land (or combined adjoining land) must be:

  • 0.8 hectare or greater in size; and
  • used wholly or mainly for the business of primary production.

For land located outside of the defined rural area, the owner does not need to be the person conducting the business of primary production upon the land.


Example 1

Bob has a keen interest in wine producing which has developed through his great love of wine. To develop this interest, Grape Pty Ltd purchased a parcel of land planted with vines.

The vineyard, located at Clare (outside the defined rural area), comprises two parcels of land which adjoin each other. One has an area of 0.5 hectares and the other has an area of 0.4 hectares.

Under these circumstances, a primary production exemption may be granted based on the following:

  • both parcels of land are used for primary production; and
  • the parcels of land are adjoining and the combined area exceeds 0.8 hectares in size.

How do I apply for an exemption?

If your land is situated outside the defined rural area and the eligibility criteria has been met, an exemption will be applied without the need for an application.

You will only need to apply for an exemption for land which is smaller than 0.8 hectares in size, but when combined with other land used for primary production is at least 0.8 hectares in size.

You can apply online. (Select Primary production as the property type option that best describes the use or circumstances of the land.)

Before you commence your application, you will need:

  • Your ownership number. This can be found in the top right corner of your land tax or emergency services levy notice of assessment.
  • The assessment number of the land. This can be found on your land tax or emergency services levy notice of assessment, water rates or council rates notice.
  • Supporting documentation that evidences that the criteria for exemption are satisfied.

Land located inside defined rural area

What criteria must be met?

The land (or combined adjoining land) must be:

  • 0.8 hectare in size; and
  • used wholly or mainly for the business of primary production.

Where the land is located inside the defined rural area different criteria applies based on the ownership of the land, as described below:

Land owned by a sole owner (natural person)

The owner must be engaged on a substantially full-time basis (either on their own behalf or as an employee) in a relevant business.

Land owned jointly or in common by two or more natural persons

At least one owner must be engaged on a substantially full-time basis (either on their own behalf or as an employee) in a relevant business.

Any owners that are not engaged in the relevant business must be a relative of an owner who is engaged.

Land owned solely, jointly or in common by a retired person

Immediately prior to their retirement, the retired owner must have been engaged on a substantially full-time basis (either on their own behalf or as an employee) in a relevant business.

A close relative of the retired person must be currently engaged on a substantially full-time basis (either on their own behalf or as an employee) in a relevant business.

If the land is owned jointly or in common, all co-owners of the land must be close relatives of the retired person.

Land owned solely or by tenancy in common by the executor of the will, or the administrator of the estate, of a deceased person

Immediately prior to their death, the deceased owner must have been engaged in the business of primary production on a substantially full-time basis (either on their own behalf or as an employee).

A close relative of the deceased person must be currently engaged on a substantially full-time basis (either on their own behalf or as an employee) in a relevant business.

If the land is owned jointly or in common, all co-owners of the land must be close relatives of the deceased person.

Land owned by a company, or by companies, or by company or companies and one or more natural persons

The main business of each owner must be a relevant business.

Land owned by a company

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;
  • two or more natural persons, who together own 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
  • two or more natural persons who are relatives, who together own 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.

What is a 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 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.

Example 2

Chris has planted a grove of olives on his property in McLaren Vale (inside the defined rural area). The property is 1.5 hectares in size.

Chris works full time in the business of harvesting olives and the production of an assortment of olive products.

Evidence provided with his application supports his employment in a relevant business.

Under these circumstances, a primary production exemption may be granted based on the following:

  • the land is used for primary production;
  • the parcel of land exceeds 0.8 hectares; and
  • the owner is in the business of primary production.

What is a relative?

A person is a relative of another if:

  • they are spouses or domestic partners;
  • one is an ascendant or descendant of the other, or of the other’s spouse;
  • one is a brother or sister of the other or a brother or sister of the other’s spouse; or
  • one is an ascendant or descendant of a brother or sister of the other or of the other’s spouse.

What is a close relative?

A person is a close relative of another if:

  • they are spouses or domestic partners;
  • one is a parent or child of the other; or
  • one is a brother or sister of the other.

What is a domestic partner?

A person is the domestic partner of a person if they live with the person.


Example 3

Sisters Megan and Sara own a property near Gawler (inside the defined rural area) which they lease to a local farmer to manage their herd of livestock. The property is 5 hectares in size.

Both Megan and Sara have full-time employment and are not involved in any primary production.

Under these circumstances, a primary production exemption would not be granted given the owners are not in the business of primary production.


How do I apply for an exemption?

If your land is situated inside the defined rural area, you can apply online. (Select Primary production as the property type option that best describes the use or circumstances of the property.)

Before you commence your application, you will need:

  • Your ownership number. This can be found in the top right corner of your land tax or emergency services levy notice of assessment.
  • The assessment number of the property. This can be found on your land tax or emergency services levy notice of assessment, water rates or council rates notice.
  • Supporting documentation, such as a copy of:

Land owned by a sole owner (natural person)

  • Tax Return(s) of the owner for each of the financial years for which an exemption is sought.

Jointly or in common by 2 or more natural persons

  • Tax Return(s) of the person engaged in the business of primary production for each year for which an exemption is sought.

Land owned solely, jointly or in common by a retired person

  • Retired person’s most recent Tax Return that includes primary production activity.
  • Tax Return(s) of any close relative engaged in the business of primary production for each year that an exemption is sought.

Land owned solely or by tenancy in common by the executor of the will, or the administrator of the estate, of a deceased person

  • Written statement by one of the executors providing details of the  deceased person’s prior involvement in a primary production business.
  • Tax Return(s) of the close relative engaged in the business of primary production for each year for which an exemption is sought.

Land owned by a company, or by companies, or by a company or companies and one or more natural persons

  • Tax Return(s) of each of the owners for each of the financial years for which an exemption is sought.

Land owned by a company

  • Tax Return(s) of the company for each of the financial years for which an exemption is sought.
  • Tax Return(s) of the shareholder(s) for each of the financial years for which an exemption is sought.