Bundilla Beef resource | 29 June 2026

Commercial Plant Nursery: What Evidence Do I Need for a Primary Production Land Tax Exemption?

A practical NSW guide to nursery records, propagation activity and sales evidence for a primary production land tax file.

Quick answer

A commercial plant nursery evidence file should prove propagation and growing activity, not just plant storage or landscaping. Keep records of source material, propagation batches, potting media, benches or growing areas, irrigation, biosecurity checks, stock on hand and sales.

Revenue NSW recognises propagation of mushrooms, orchids or flowers separately, and cultivation for sale more broadly. For other nursery plants, the file should be careful to show the exact primary production use being relied on and obtain professional advice where classification is uncertain.

Nursery focus: distinguish production from resale. Buying finished plants and holding them for retail sale is much weaker than records showing propagation, growing-on and production for sale on the land.

Evidence to collect

Evidence	What it should show
Nursery layout map	Propagation benches, shadehouses, hardstand, growing bays, quarantine/holding area, irrigation and non-production areas.
Propagation records	Seed, cutting, division, grafting or tissue-culture batch, date started, source plant/material, strike rate and potting-on date.
Input records	Pots, trays, labels, media, fertiliser, irrigation parts, pest/disease controls, benches and shadecloth.
Stock records	Batch number, species/cultivar, quantity propagated, losses, saleable stock and dispatch date.
Sales records	Wholesale orders, retail invoices, market records, online orders, delivery dockets and customer correspondence.

Biosecurity and plant movement detail

Plant nurseries should keep clear records of incoming plant material and outgoing stock. Biosecurity risk can attach to soil, potting media, host plants, cuttings and nursery stock. Keep supplier details, plant health certificates if relevant, pest monitoring notes and treatment records.

If plants are imported from interstate or overseas, keep the import or movement documentation with the batch record. This supports both biosecurity compliance and the credibility of the production file.

Weak points to avoid

Weak evidence	Stronger evidence
Photos show rows of potted plants.	Rows of plants tied to propagation sheets, batch labels and sales records.
Retail sales are recorded but production is not.	Propagation and growing records showing the plants were produced or grown-on at the property.
Plant labels are inconsistent.	Batch labels that match stock lists, invoices and dispatch records.
Mixed garden and nursery areas.	Map separating commercial production areas from residential landscaping or display gardens.

Action checklist

Create a nursery map showing each growing area and its purpose.
Assign batch numbers before propagation starts and keep them through sale.
Photograph propagation, potting-on, growing-on and dispatch stages.
Keep supplier, plant health and treatment records for source material.
Separate privately collected or display plants from commercial sale stock.

How Bundilla Beef can help

Bundilla Beef can help test whether a nursery-style activity is suitable for the land, organise batch and layout records and prepare a clear evidence pack. That work can help demonstrate actual production activity where the property and operation support it.

Disclaimer: Bundilla Beef does not provide tax, legal or financial advice and does not guarantee a land tax exemption. Landowners should obtain advice from their accountant, lawyer or tax adviser before relying on any land tax position.

Source notes

This resource was prepared using official and relevant industry sources checked on 29 June 2026. Source links should be checked periodically for changes.