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Depending on the location of the land, a land tax exemption may be available if land is used primarily for primary production or used solely or primarily for the business of primary production. An exemption may also be available for land being prepared for primary production.

Different eligibility requirements apply depending on whether the land is located:

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

For details on activities that constitute primary production and eligibility requirements for land located wholly outside greater Melbourne or land located wholly or partly within greater Melbourne but not within an urban zone, please refer to Revenue Ruling LTA-010 - Exemption for primary production land.

For details on the eligibility requirements for land within greater Melbourne and wholly or partly within an urban zone, please refer to Revenue Ruling LTA-011 - Primary production exemption for land in urban zone.

Land being prepared for primary production

If land is being prepared for primary production (see Revenue Ruling LTA-006 - preparation of land for a primary production exemption) it may be exempt from land tax if the land becomes exempt as primary production land within 12 months of the preparation work starting. We may extend this period by a further 12 months on request.

If preparation work is not completed within 12 months (or an extended 12-month period), the exemption may not be granted which may result in the land being assessed for land tax.

Exempt land no longer used for primary production

If the primary production activities stop, you must notify us immediately. Failure to do so may lead to penalties.

Apply for a PPL exemption

Last modified: 9 February 2024
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