How to Become Classified as A Primary Producer/Alpacas

3 posts

Member for

8 months 4 weeks
Last seen: 02/01/2019 - 11:04
Joined: 12/20/2018 - 11:31

How to Become Classified as A Primary Producer/Alpacas

Hi Everyone! First time poster, here. We've recently purchased 136acres of land near Maleny, Queensland. The land is heavily sloped and has access to a permanent creek. Previously (>10yrs) ago there were 100 head of cattle on the property. We are faced with a significant task of pasture regeneration, as the owner who was here for the last 8 years did not access any part of the property but the front yard. We've recently gone to an accountant to obtain ABN and GST number and have the intention of breeding Alpacas and establishing some Bed and Breakfast type cabins on the property. We've dropped both of our day jobs to casual in an effort to get the time to put into establishing this business. When can we begin to claim the tax benefits of being a primary producer? We have already sunk a significant amount of personal capital into the purchase of land and farming equipment such as tractor and UTV. We need to clear lantana and do a lot of weed control before we put stock on the property. Can we claim these benefits as we are undertaking pasture regeneration, or do we need to have our stock on the property first? I've been everywhere online and it is all very confusing. I'm currently undertaking a farm management course online and hope to establish a farm management and business plan in the next few months. Any advice or contacts that can be offered for guidance and mentorship relating to the tax considerations and/or where to begin with pasture regeneration would be greatly appreciated.
Last seen: 09/18/2019 - 14:40
Joined: 02/28/2011 - 14:19

Hi Char,

Welcome to the small farm forum, great to have you as part of the community.

When you are starting out it definitely can be a confusing time, please see my response below.

You are able to claim the GST back from the purchase of any farm related expenditure from the date of registration for GST. It isn’t a requirement that they have any livestock as the business is operational from the day they obtained their ABN and started work on the property. Hopefully they also applied for  Fuel Tax Credits as well. If you buy fuel for the tractor or UTV and use it on the property they can claim that back in each Business Activity Statement they do.

At the end of the financial year if you have a loss on the farming business you may be able to claim those losses against their other income under a number of circumstances. These are detailed under  “Non Commercial Business Losses” on the ATO website. Even if the current years losses aren’t able to be offset against their current years other income they will be deferred forward to future years until they can be offset.

Given you have already been to an accountant to register for their ABN and GST, you should go back and have a further discussion regarding this question. It can be a confusing area for start up businesses, there are a number of different tests available to claim those losses and professional advice should be sort.

I hope this advice is of assistance.


Last seen: 05/14/2019 - 10:43
Joined: 05/14/2019 - 10:19

Hi Char, I came across your post when I was researching for the same answers. Our stories are extremely similar. Would be great to have a chat with you ....

New Forum Topics

Topic Replies Last post Forum
5855 sheep and goats
by mick650 on Mon, 09/09/2019 - 20:06
by mick650
Wed, 09/18/2019 - 11:10
General Forum
5847 Cattle start up
by grahamsie on Tue, 09/03/2019 - 12:10
by Albertgotdonkey
Sat, 09/14/2019 - 09:04
5846 Phasing out of Herbicides
by Pandacorp on Mon, 09/02/2019 - 03:39
by admin
Thu, 09/05/2019 - 16:20
Weeds & pests
5849 50 acres in Hawkesbury - Looking for some advice re goat farming
by xmss on Wed, 09/04/2019 - 18:02
by xmss
Wed, 09/04/2019 - 18:02
New Members
5840 Horse agistment Tax deductions
by nq1 on Fri, 08/23/2019 - 18:47
by admin
Tue, 08/27/2019 - 10:03
New Members
5838 Farm layout
by thato on Wed, 08/21/2019 - 08:14
by admin
Wed, 08/21/2019 - 11:41
Farm planning
5837 Looking for vat milk
by lookingformilk on Mon, 08/19/2019 - 17:12
by admin
Tue, 08/20/2019 - 14:08
General Forum
5832 Grass / Reed identification
by steventh on Fri, 08/09/2019 - 08:22
by admin
Tue, 08/13/2019 - 12:46
Weeds & Pests
5798 Dairy cow, where?
by shelle on Wed, 08/07/2019 - 06:49
by Albertgotdonkey
Mon, 08/12/2019 - 20:24
General Forum
5522 Total newbies on 8 acres Vic
by shelle on Thu, 04/11/2019 - 10:56
by shelle
Mon, 08/12/2019 - 18:42
New Members
5834 Hello, 10 acres in South Gippsland
by Gumboots on Sat, 08/10/2019 - 10:27
by Gumboots
Sat, 08/10/2019 - 10:27
New Members
2967 What to do with 10 acres ?
by jp_ads on Tue, 06/21/2016 - 16:49
by Gumboots
Sat, 08/10/2019 - 10:05
Farming Help
5794 Olive Fertilizer
by alweller on Sun, 08/04/2019 - 11:51
by admin
Fri, 08/09/2019 - 11:03
5764 Mulcher vs Slasher
by steventh on Fri, 07/12/2019 - 00:39
by steventh
Fri, 08/09/2019 - 06:56
Farm equipment
5771 Electric Fences n more?
by shelle on Sun, 07/28/2019 - 19:06
by Albertgotdonkey
Wed, 08/07/2019 - 08:22
Farming Help
5791 Small farm ATO - Farm stay
by thomen on Thu, 08/01/2019 - 15:03
by admin
Thu, 08/01/2019 - 17:01
New Members
5765 Warts on my calf
by bek007 on Wed, 07/17/2019 - 19:01
by admin
Mon, 07/22/2019 - 22:44
Animal Health
5673 Goat Worming
by Brettgarland on Sat, 05/11/2019 - 17:06
by hairy goat
Sun, 07/21/2019 - 10:33
Farming Help
5760 green eye crust on lamb
by leahj86 on Tue, 07/09/2019 - 23:08
by admin
Sat, 07/20/2019 - 09:19
932 Tractors
by gaz on Fri, 07/13/2012 - 13:53
by stevo83
Sun, 07/14/2019 - 19:17
General Forum

Our Sponsors

Our Partners