1.1.P.390 Primary production (assets, liabilities)
These definitions are to be used when assessing the assets of a primary producer.
Act reference: SSAct section 11(1)-'primary production'
Definition: primary production asset
A 'primary production asset' is any asset that is used to carry on the primary production business. It includes:
- land, AND
- Exception: Under the private land use test (22.214.171.124), the principal home and adjacent land of up to 2 hectares is excluded. Under the extended land use test (126.96.36.199), age pensioners and CP recipients of age pension age may exempt the land in excess of 2 hectares adjacent to their principal home that is under the same title document, provided they are making effective use of the land.
- machinery, AND
- plant or equipment, AND
Act reference: SSAct section 11A(1) Principal home
Definition: primary production liability
A 'primary production liability' is a liability gained specifically for funding or sustaining the primary production business.