Bundilla Beef resource | Reviewed 2026-07-06

Can Agistment Qualify for Primary Production Exemption?

Agistment is often misunderstood because the land may have animals on it without the owner running the production activity.

Important: General information only. Bundilla Beef does not provide tax, legal or financial advice and does not guarantee a land tax exemption. Eligibility depends on the land, use, evidence, ownership, zoning and Revenue NSW's assessment.

Quick answer

Agistment may support a position only where the actual use satisfies the primary production requirements. Horse agistment is specifically identified by Revenue NSW as usually non-exempt.

Third-party use can be relevant, but the owner still needs detailed evidence about that use and about any non-primary production use.

Working test: Do not rely on the word agistment. Identify the animal, purpose, operator, sale pathway, records and competing uses.

What Revenue NSW will usually care about

Stronger signal	Why it helps
Third-party operator produces saleable output	Connects the land to primary production rather than passive paddock rental.
Written agreement with record obligations	Gives the owner access to evidence when Revenue NSW asks.
Animal and movement records	Show real use across relevant years.
Non-production uses disclosed	Helps assess dominant use honestly.

Warning signs to fix before relying on the exemption

Risk signal	Why it can weaken the position
Horse agistment for riding or recreation	Revenue NSW says horse agistment is usually non-exempt.
Owner has no records from the operator	The owner may be unable to prove the position.
Flat paddock rent with no production detail	Payment alone does not prove qualifying primary production.
Mixed users on the property	Residential, recreational or storage uses may dilute the land-use story.

Evidence pack checklist

A useful evidence pack should be organised so an owner, adviser or Revenue NSW assessor can see what happened on the land, who did it, when it happened and how it connects to saleable primary production.

Agreement identifying operator, land area, animal purpose and evidence obligations.
Operator records for stock numbers, movements, sales and animal purpose.
Property plan showing the area used by the operator and any excluded areas.
Invoices, receipts or reports showing production activity.
Photographs of animals, fences, water, yards and land condition.
Annual owner summary of third-party use and non-primary production uses.

Owner template: one-page position summary

Copy this structure into your working file before speaking with an adviser.

Operator: name, role, ABN if relevant and production activity.
Land used: paddocks, access, water, infrastructure and excluded areas.
Animal purpose: sale, natural increase, bodily produce or other purpose.
Records received: movement reports, stock numbers, sales, invoices and photos.
Risk flags: recreational horses, informal arrangements, no sale records or mixed use.

How Bundilla Beef can help

Bundilla Beef can help owners structure managed land-use arrangements with practical reporting obligations so third-party activity is not invisible when evidence is needed.

The objective is not to create paperwork after the event. It is to align the operating plan, physical land use and records so the evidence tells a clear, factual story.

Next steps

Review any agistment agreement for evidence obligations.
Confirm whether the animals are maintained for a qualifying purpose.
Collect operator records before lodging or responding.
Treat horse agistment as high risk unless specialist advice says otherwise.

Source notes

This resource was prepared using official NSW sources checked on 2026-07-06. Check current Revenue NSW guidance before lodging or responding to an assessment, notice or investigation.