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Edited version of your private ruling
Authorisation Number: 1012527700218
Ruling
Subject: Am I in business - primary production
Question
Is a contract worker considered to be carrying on a business of primary production?
Answer
No
This ruling applies for the following period:
Year ending 30 June 2013
The scheme commences on:
1 July 2012
Relevant facts and circumstances
You are a contract worker
You are contracted to undertake services relating to farm animals.
You do not own the farm animals
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 995-1(1)
Reasons for decision
One of the categories of a "primary production business" defined in subsection 995-1(1) of the Income Tax Assessment Act 1997, is a business of maintaining animals for the purpose of selling them or their bodily produce.
In your case, you are a contract worker. You are engaged by farmers to provide services in relation to their animals. The animals you perform these services on are not owned by yourself, they are the property of the farmers who engage you.
You are providing ancillary services to these farmers. For the purposes of the averaging provisions you are not considered to be maintaining the animals for the purpose of selling them or their bodily produce as you have no legal rights over these animals. You are merely completing contracted services for payment. Therefore you would not be considered to be carrying on a business of primary production for the purposes of the averaging provisions.
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