A primary producer is an individual, trust or company carrying on a primary production business, alone or in partnership. You're a primary producer if you carry on a business in:
- plant or animal cultivation (or both)
- fishing or pearling (or both)
- tree farming or felling (or both).
You need to consider various indicators before you decide if an activity is a business of primary production. For a full explanation of the relevant indicators with examples of their application, see Taxation Ruling TR 97/11 Income tax: am I carrying on a business of primary production?
You're not operating a business if the activity is better described as a hobby, a form of recreation or a sporting activity.
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