The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

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 (, the principal home and adjacent land of up to 2 hectares is excluded. Under the extended land use test (, 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
  • stock.

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.

Act reference: SSAct section 11(1)-'primary production'

Policy reference: SS Guide 4.6 Assets, 4.7.4 Assessing the Income & Assets from Primary Production

Last reviewed: