2023 Primary production

Taxation issues arising from alternative land use of primary production land

Source: QLD, Online

Published Date: 15 Jun 2023


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Farming land is not only demanded for its ability to produce food and fibre but regularly farmers receive amounts related to the land’s alternative use in energy production such as wind, solar or coal seam gas as well as having an integral role on the capture and storage of carbon. This session provides guidance on the taxation of amounts that may be received from a diverse range of the alternative uses of land including:

  • Licence, lease and other amounts received in connection with wind and solar farm developments. Characterising the receipts as income or capital
  • Compensation for the loss of use or permanent impact on land that may be used for alternative uses. For example compensation for the extraction of coal seam gas, coal and other resources
  • Changes in the status of land from a land tax perspective where the land is being used for an alternative purpose
  • The use of the land as part of an agri-tourism business
  • The use of land for biodiversity including conservation covenants
  • The use of land as a carbon storage vehicle – revegetation, carbon farming, sale of carbon (ACCUs) – Carbon adjustment mechanisms
  • The role of farmland in ESG (Environmental, Social and Governance) in the context of sustainable development goals
  • Potential characterisation of receipts as primary production income; and
  • Granting of access rights including easements (compulsory and voluntary).


  • Published By: David Hall CTA
  • Published On:15 Jun 2023
  • Took place at:Hilton Brisbane & Online

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2023 Primary production

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