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, the vehicle must be a motor vehicle (not used for let or hire), owned by the primary producer, incorporated body or rural co-operative.
While on road and road-related areas, the vehicle must be principally used for:
- carting primary products that the primary producer or another primary producer has produced
- carting leaves which the primary producer or another primary producer has gathered and from which eucalyptus or some other oil is to be distilled
- carting goods of any kind for use in the primary producer's business or another primary producer's business, or in the primary producer's household or another primary producer's household
- purposes connected with the clearing of land that the primary producer or another primary producer proposes to use for primary production.
Primary producer vehicles are not:
- used for let (leased)
- used for hire (rented)
- used to receive a fee or reward (including a fee or reward from another primary producer).
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 aDeclaration of Eligibility for a Registration Concession (PDF, 292.37 KB)
- get a new NSW registration
- get seasonal registration
- transfer registration
- change to primary producer registration usage.
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 signed by a registered tax agent or accountant, stating the applicant is a primary producer as defined by the Motor Vehicles Taxation Act 1988 which is not more than 12 months old. The 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
- a Tax Averaging Certificate from the Australian Taxation Office (not more than two years old), or
- a Tax Assessment Notice from the Australian Taxation Office (not more than two years old).
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 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
- harvester fronts and harvest bins.
Examples of agricultural machinery are tractors and harvesters.
Reforms to the concession
Legislation passed in October 2021 changes the concession eligibility requirements. These changes were introduced to ensure that only genuine primary producers are granted the concession.
The changes include requirements that:
- applicants must be able to prove that at least 50% of their income is from primary production (under normal circumstances), and
- their heavy vehicles must be used solely for primary producer business purposes (subject to a final legislative amendment in early 2022).
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’.
Procedures will be incrementally introduced to align with the amended legislation, including:
- in early 2022 – the requirement that heavy vehicles be used solely for Primary Producer purposes
- in late 2022 – a new declaration form requiring documentation to prove the 50% income threshold for Primary Producers.