A primary producer is an individual, trust or company carrying on a primary production business alone or in partnership. You are a primary producer if you carry on a business of:
- cultivating or propagating plants, fungi or their products or parts - including seeds, spores, bulbs and similar things - in any physical environment
- maintaining animals for the purpose of selling them or their bodily produce - including natural increase
- manufacturing dairy produce from raw material that you produced
- conducting operations relating directly to taking or catching fish, turtles, dugong, b che-de-mer, crustaceans or aquatic molluscs
- conducting operations relating directly to taking or culturing pearls or pearl shell
- planting or tending trees in a plantation or forest that are intended to be felled
- felling trees in a plantation or forest, or
- transporting trees or parts of trees that you felled in a plantation or forest to the place:
- where they are first to be milled or processed, or
- from which they are to be transported to the place where they are first to be milled or processed.
- where they are first to be milled or processed, or
You need to consider various indicators before you decide if an activity is a business of primary production. TR 97/11 - Income tax: am I carrying on a business of primary production? provides a comprehensive explanation of the relevant indicators together with examples of the application of the indicators.