Can Horses Qualify for Primary Production Exemption?
Horse properties need careful treatment because many common horse uses are specifically high risk for the primary production exemption.
Quick answer
Land used to maintain horses can qualify where the horses are maintained for sale, sale of bodily produce or sale of offspring. Revenue NSW says horse racing, recreational riding, riding sports, riding schools and horse agistment are usually non-exempt purposes.
That means horse activity is not automatically primary production. The evidence needs to show the purpose of maintaining horses, the sale pathway and why non-exempt riding or agistment uses do not dominate.
What Revenue NSW will usually care about
| Stronger signal | Why it helps |
|---|---|
| Stud or breeding records tied to sale | Revenue NSW recognises sale of animals, offspring or bodily produce as relevant. |
| Sales contracts or market pathway | Show commercial purpose. |
| Clear separation from recreational riding | Helps address non-exempt horse uses. |
| Animal, expense and property records | Support actual maintenance activity on the land. |
Warning signs to fix before relying on the exemption
| Risk signal | Why it can weaken the position |
|---|---|
| Horse racing purpose | Revenue NSW identifies this as usually non-exempt. |
| Recreational riding or riding sports | These are usually non-exempt horse uses. |
| Riding school | This is usually outside the exemption pathway. |
| Horse agistment | Revenue NSW identifies horse agistment as usually non-exempt. |
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.
- Horse register showing purpose, ownership, breeding, sale or offspring details.
- Sale contracts, service records, invoices or semen/offspring sale records where relevant.
- Property plan showing paddocks, stables, yards, water and other uses.
- Photos of horses, infrastructure and land use.
- Expense invoices for feed, veterinary, farrier, fencing and maintenance.
- Written explanation of any riding, recreation, lessons, racing or agistment activity.
Owner template: one-page position summary
- Horse purpose: sale, offspring, bodily produce or other.
- Commercial records: sales, breeding, service, invoices and customers.
- Non-exempt uses: racing, recreational riding, sports, school or agistment.
- Land use: paddocks, stables, arena, residence, storage and unused areas.
- Risk conclusion: why the horse use is or is not a credible primary production activity.
How Bundilla Beef can help
Bundilla Beef can help horse-property owners identify whether the current use is too risky and, where appropriate, assess alternative primary production models better aligned with Revenue NSW guidance.
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
- Classify the horse activity honestly before lodging.
- Separate commercial breeding or sale evidence from riding and agistment evidence.
- Get advice if any non-exempt horse use is significant.
- Consider whether another enterprise would create a stronger land-use position.
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.