22 July 2026
Farmers from across the state and across all commodities have today unanimously agreed that the NSW Government must urgently suspend land tax compliance of primary production until the current definition is resolved – including all current and planned investigations.
NSW Farmers Business, Economics and Trade committee chair John Lowe said Revenue NSW compliance activities have caused significant stress for small and medium sized farms that have been traditionally exempt from land tax.
“It is critical that the NSW Government acts now to ensure that the land tax exemption continues to support evolving, contemporary, and diversified farm businesses,” Mr Lowe said
“The definition of primary production land in land tax legislation has not been updated in over 25 years and is at risk of no longer reflecting modern farm businesses.”
“Not updating the current primary production definition for land taxes not only risks food security and business resilience but also risks the NSW Government’s existing government policies to promote risk management, agrifood development and agritourism being realised.”
“Farm businesses that integrate small-scale value-adding, agritourism, processing activities on-farm that are directly linked to the cultivation or maintenance of that land should remain eligible for the exemption.”
Compliance has recently recommenced by the regulator causing significant uncertainty in the sector about how the current framework is being enforced.
Mr Lowe said the state government should align its land tax framework for primary production with other jurisdictions that support the sale of value-added agricultural products, such as Victoria where they recognize produce whether its sold in a natural state, is converted or processed. .”
“The definition of “primary production land” must not exclude genuine primary producer – recognising diversified on-farm activities which are complementary to, not competing with primary production.”
NSW Farmers is seeking practical changes to the primary production definition in NSW that restores confidence and provides longer-term certainty for agriculture in the State including agritourism and value-add activities.
