Primary production land exemption

Eligibility

Primary production land (farming land) may be exempt from land tax.

Depending on its location, land may be exempt if it is:

• used primarily for primary production
• used solely or primarily for the business of primary production
• being prepared for use primarily for primary production.

Eligibility requirements depend on whether the land is located:

• wholly outside greater Melbourne
• wholly or partly in greater Melbourne but not in an urban zone
• wholly or partly in greater Melbourne and wholly or partly in an urban zone.

Revenue Ruling LTA-010 - Exemption for primary production land outlines:

• what constitutes primary production
• eligibility requirements for land wholly outside greater Melbourne
• eligibility requirements for land wholly or partly in greater Melbourne but not in an urban zone.

Revenue Ruling LTA-011 - Primary production exemption for land in urban zone outlines:

• eligibility requirements for land wholly or partly in greater Melbourne and wholly or partly in an urban zone. 

Land being prepared for primary production

Land may be exempt from land tax if:

• it is being prepared for use primarily for primary production
• it will become exempt as primary production land within 12 months of starting the preparation work.

You can ask us to extend this period by 12 months. Refer to Revenue Ruling LTA-006v2 - preparation of land for a primary production exemption.

If preparation work is not completed within 12 months (or 24 months if we approve an extension), land tax may apply.

Exempt land no longer used for primary production

If primary production stops, you must notify us immediately. Failing to notify us may lead to penalties.