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Edited version of private advice
Authorisation Number: 1051899585740
Date of advice: 16 September 2021
Ruling
Subject: Primary production business
Question
Have you been carrying on a primary production business since inheriting the land in 19XX for the purposes of the Income Tax Assessment Act 1997?
Answer
Yes, you have been carrying on a primary production business since 19XX for the purposes of the Income Tax Assessment Act 1997.
The scheme commences on:
1 December 19XX
Relevant facts and circumstances
You own a farm that is on a land size of X,XXX acres that you inherited in XXX 19XX.
The property is registered on the National Livestock Identification System (NLIS).
The inheritance also included livestock of approximately XXX cattle.
Earmarks and stock brands for the property are registered with the NSW Government.
Annual returns of the land and stock are completed and lodged with the NSW Government.
The farm has been a working family farm since the XXXX's.
You conduct a business of self-replacing August cattle breeding herd focused on weaner production.
Your cattle breeding operations averages sales of at least XX to XX head per year.
The breeding stock are joined with bulls to achieve spring calving and to produce weaners for sale into commercial markets in the autumn.
Person 1 has completed a Farming Planning Workshop that was conducted by NSW Local Land Services.
Person 1 is accredited for Livestock Production Assurance.
Biosecurity qualifications have been obtained and you have developed a biosecurity plan for the property which you ensure has been met.
A property weed management plan has been developed for the whole property and is adhered to.
You have obtained professional advice for your business when required.
You have a vast range of farming equipment.
Sales are consistently in excess of $XX,XXX per year.
You maintain all records regarding your business operations including stock sales, births and sales records.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 995-1(1)
Income Tax Assessment Act 1997 section 6-5