Primary producers registration concessions

Primary producers can apply for a concession on their vehicle registration. The eligibility requirements for the concession have changed, see the reforms section below for details and find out if you qualify and how to apply.

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What is a primary producer?

A primary producer is a person or incorporated body who cultivates or uses their own or someone else's land for their own benefit:

  • for the production of fruit, grains, flowers, vegetables, tobacco or farm or agricultural produce of any description
  • for dairy farming, poultry or other bird farming, pig farming, bee keeping, or oyster or fish culture
  • for a nursery
  • as a pastoralist for the rearing or grazing of horses, cattle or sheep
  • who gather leaves from which eucalyptus or other oil is to be distilled.

For example, fish farmers and plantation forest cultivators are primary producers and are eligible for registration concession.

Primary producers claiming the concession for their primary producer vehicles are in most cases farmers using vehicles to cart their own primary produce to market. Companies who are in the transport/haulage business and cart other people’s primary produce for hire or reward are not eligible for the concession. Primary producers are not:

  • commercial fishers taking fish from open waters and not purposefully enclosed water for breeding
  • timber loggers where the timber is from a natural grown forest and is not sown and grown
  • freight and transport companies who cart other people’s primary produce for hire or reward.

Primary producer vehicle requirements

To get a concession, a primary producer vehicle means a Light Vehicle that is owned by a primary producer which is not used or let for hire, and is used solely or principally:
 

  • to cart primary products or another primary producer has produced, or
  • to cart leaves or another primary producer has gathered and from which eucalyptus or other oil is to be distilled, or
  • to cart goods of any kind for use in their primary production business of the owner or of another primary producer, or
  • to cart goods of any kind for use in the primary producer’s household, or that of a member of the rural society who is a primary producer or of another primary producer, or
  • purposes connected with the clearing of land or another primary producer proposes to use for primary production.

OR

A primary producer vehicle means a Heavy Vehicle that is owned by a primary producer which is not used or let for hire, and is used solely:

  • to cart primary products or another primary producer has produced, or
  • to cart leaves or another primary producer has gathered and from which eucalyptus or other oil is to be distilled, or
  • to cart goods of any kind for use in their primary production business or of another primary producer, or
  • purposes connected with the clearing of land or another primary producer proposes to use for primary production.

A rural society means a co-operative or a participating co-operative, within the meaning of the Co-operatives National Law (NSW), in which at least 75 per cent of the shares are held by primary producers.

What is the registration concession?

Primary producer vehicles receive the following concessions.

Light vehicles (up to 4.5 tonnes GVM)

  • Cars and station wagons - private rate of vehicle tax.
  • Trucks and trailers - 55% of business rate of vehicle tax and capped.
  • Tractors - 55% of business rate of vehicle tax and capped.

Heavy vehicles (over 4.5 tonnes GVM)

  • Applicable registration charge or vehicle tax, whichever is lower.

Applying for a primary producer concession

To apply for a concession you must provide a

Declaration of Eligibility for a Registration Concession (PDF, 304.91 KB)

 when you:

You must also provide one of the documents listed below to support your application. This is to prove your eligibility for the concession.

  • A declaration, not more than 12 months old and signed by a registered tax agent or accountant, stating the applicant is a primary producer as defined under the Road Transport (Vehicle Registration) Regulation 2017*. This declaration must also include:
    • The full name and address of the Registered Operator claiming the concession, and
    • The full name, business name or company name, the address and Tax Practitioners Board registration number of the tax agent or accountant making the declaration, or

You must also notify us within 14 days if you no longer qualify for a primary producer concession. You should visit a service centre to do this.

Farm vehicles that don't need registration

Some vehicles used for the purpose of primary production do not have to be registered. These include vehicles solely used off road on farmland or where an exemption is provided to cross a road or road-related area which divides land used for the purpose of primary production.

The following types of agricultural implements don't need registration:

  • implements towed by a vehicle
  • trailers towed by an agricultural machine
  • irrigating equipment
  • augers
  • conveyors
  • harvester fronts and harvest bins.

Examples of agricultural machinery are tractors and harvesters.

Reforms to the concession

Legislation passed in October 2021 changed the concession eligibility requirements. These changes were introduced to ensure that only genuine primary producers are granted the concession.

The changes include requirements that:

  • their heavy vehicles must be used solely for primary producer business purposes and
  • applicants must be able to prove that at least 50% of their income is from primary production (under normal circumstances).

Enforcement of the heavy vehicle sole use criterion commenced on 1 June 2022.

There is a Ministerial Exemption Order in place for the 50% income requirement, meaning that primary producers will not be required to provide evidence that 50% of their income comes from primary producer operations until 1 November 2023.

Increased penalties and new offences were also introduced to support these changes, including:

  • an increased penalty for corporations who attempt to register a vehicle by dishonest means
  • a new offence for individuals and corporations who ‘obtain or attempt to obtain a vehicle registration concession by false statement, misrepresentation or other dishonest means’.

Frequently asked questions

For further information, please see the FAQs.

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