Primary producer registration concessions

What is a primary producer?

A primary producer is a person or incorporated body who, in the course of carrying on a primary production business, cultivates or uses their own land or that of another for their own benefit:

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

A primary production business has the same meaning as in the Income Tax Assessment Act 1997 of the Commonwealth. However, not all primary production businesses under this Act are eligible, only the ones that meet the above NSW criteria.

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 (under formal lease or otherwise), fee or other consideration are not eligible for the concession. 

Primary producer vehicle requirements

To be eligible for the concession, a primary producer vehicle must meet the following: 

A light vehicle that is owned by a primary producer or rural co-operative and while on a road or road related area, is used solely or principally to:

• cart goods for use in a household of the owner or of another primary producer
• cart primary products the primary producer or another primary producer has produced
• cart leaves gathered by the primary producer or another primary producer and from which to distil and produce eucalyptus or other oil is to be distilled
• cart goods for a primary producer or for another primary producer’s business.
• clear land the primary producer or another primary producer proposes to use for primary production

OR

A heavy vehicle that is owned by a primary producer or rural co-operative and while on a road or road related area e, and is used solely to:

• cart primary products the primary producer or another primary producer has produced
• cart leaves gathered by the primary producer or another primary producer and from which eucalyptus or other oil is to be distilled
• cart goods of any kind for the primary producer or another primary producer’s business or
• clear land the primary producer or another primary producer proposes to use for primary production 

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

What’s not a primary producer or primary producer vehicle?

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 (under formal lease or otherwise), fee or reward

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?

The cost of registration typically includes a registration fee, number plate fee and vehicle tax or registration charge. Vehicle tax is calculated on the weight of a vehicle when empty (tare/unladen) and the use of the vehicle.

Primary producer vehicles are used for business purposes, which attracts a higher vehicle tax than private use, but are eligible for 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. Vehicle tax for trucks over 2504kg tare and trailers over 2504kg tare is capped.
• Tractors - 55% of business rate of vehicle tax. Vehicle tax for tractors weighing 2791kg and above is capped.

Heavy vehicles (over 4.5 tonnes GVM)

• The ordinary registration charge or the primary producer registration charge, whichever is lower, applies.
• Note: for some heavy vehicles, the primary producer rate can be more than the ordinary rate. In these cases, the lower ordinary rate applies, and the primary producer usage restrictions will not apply to that vehicle. 

Example 1: a two-axle truck with an unladen mass of 5,000kg, a gross vehicle mass of 10,000 kg and that does not tow heavy trailers, the ordinary registration charge is around half the primary producer registration charge. In this case, the ordinary rate is less and will apply, and the vehicle is not subject to primary producer usage restrictions.

Example 2: a three-axle prime mover with an unladen mass of 7,000kg, a gross vehicle mass of 15,000 kg and that tows one semi-trailer, the ordinary registration charge is more than double the primary producer registration charge. In this case, the primary producer rate is less and will apply, and the vehicle is subject to primary producer usage restrictions.

Applying for a primary producer concession

To apply for a concession, you must provide a Declaration of Eligibility for a Registration Concession.

 when you:

• 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, 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.

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.

Frequently asked questions

For further information, please see the FAQs.