2023 Primary production

Tax consequences of inter entity agreements/arrangements

Source: QLD, Online

Published Date: 15 Jun 2023


An entity carrying on a primary production business will utilise various assets including real property, depreciating assets and other business resources. If they do not own those items then access is generally made available through various legal arrangements including leases, licences and sometimes tenancies at will. These different access arrangements sometimes give rise to substantially different tax outcomes for both the owner of the item and the entity carrying on the primary production business.

This presentation covers the commercial and legal nature of such arrangements, including:

  • Share farming, including the ATO view on whether a landholder is carrying on a business of primary production
  • Tips and traps associated with asset use agreements, including bank security, PPSR, water entitlements/allocations, and sale and leaseback arrangements
  • The tax and legal implications of constructing improvements on leased land; and
  • The placement of buildings including residential buildings on farming land.

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  • Published By: Tom Walrut
  • Published On:15 Jun 2023
  • Took place at:Hilton Brisbane & Online

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Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

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2023 Primary production

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