Primary producer registration concessions

What is a primary producer?

A primary producer is a person or incorporated body who cultivates or uses their own or someone else's land for their own benefit:

• for the production of fruit, grains, flowers, vegetables, tobacco or farm or agricultural produce of any description
• for dairy farming, poultry or other bird farming, pig farming, bee keeping, or oyster or fish culture
• for a nursery
• as a pastoralist for the rearing or grazing of horses, cattle or sheep
• who gather leaves from which eucalyptus or other oil is to be distilled.

For example, fish farmers and plantation forest cultivators are primary producers and are eligible for registration concession.

Primary producers claiming the concession for their primary producer vehicles are in most cases farmers using vehicles to cart their own primary produce to market. Companies who are in the transport/haulage business and cart other people’s primary produce for hire (under formal lease or otherwise), fee or other consideration are not eligible for the concession. Primary producers are not:

• commercial fishers taking fish from open waters and not purposefully enclosed water for breeding
• timber loggers where the timber is from a natural grown forest and is not sown and grown
• freight and transport companies who cart other people’s primary produce for hire (under formal lease or otherwise), fee or other consideration.

Primary producer vehicle requirements

To get a concession, a primary producer vehicle means a light vehicle that is owned by a primary producer which is not used or let for hire, and is used solely or principally:
 

• to cart primary products or another primary producer has produced, or
• to cart leaves or another primary producer has gathered and from which eucalyptus or other oil is to be distilled, or
• to cart goods of any kind for use in their primary production business of the owner or of another primary producer, or
• to cart goods of any kind for use in the primary producer’s household, or that of a member of the rural society who is a primary producer or of another primary producer, or
• purposes connected with the clearing of land, or another primary producer proposes to use for primary production.

OR

A primary producer vehicle means a heavy vehicle that is owned by a primary producer which is not used or let for hire, and is used solely:

• to cart primary products or another primary producer has produced, or
• to cart leaves or another primary producer has gathered and from which eucalyptus or other oil is to be distilled, or
• to cart goods of any kind for use in their primary production business or of another primary producer, or
• purposes connected with the clearing of land or another primary producer proposes to use for primary production.

A rural society means a co-operative or a participating co-operative, within the meaning of the Co-operatives National Law (NSW), in which at least 75 per cent of the shares are held by primary producers.

What is the registration concession?

The cost of registration typically includes a registration fee, number plate fee and vehicle tax. Vehicle tax is calculated on the weight of a vehicle when empty (tare/unladen) and the use of the vehicle.

Primary producer vehicles are used for business purposes, which attracts a higher vehicle tax than private use, but are eligible for the following concessions:

Light vehicles (up to 4.5 tonnes GVM)

• Cars and station wagons - private rate of vehicle tax.
• Trucks and trailers - 55% of business rate of vehicle tax. Vehicle tax for trucks over 2504kg tare is capped at $847 and trailers over 2504kg tare is capped at $804.
• Tractors - 55% of business rate of vehicle tax. Vehicle tax for tractors weighing 2791kg and above is capped at $773.

Heavy vehicles (over 4.5 tonnes GVM)

• The ordinary registration charge or the primary producer registration charge, whichever is lower, applies.
• Note: for some heavy vehicles, the primary producer rate can be more than the ordinary rate. In these cases, the lower ordinary rate applies, and the primary producer usage restrictions will not apply to that vehicle.
   

Example 1: a two-axle truck with an unladen mass of 5,000kg, a gross vehicle mass of 10,000 kg and that does not tow heavy trailers, the ordinary registration charge is around half the primary producer registration charge. In this case, the ordinary rate is less and will apply, and the vehicle is not subject to primary producer usage restrictions.

Example 2: a three-axle prime mover with an unladen mass of 7,000kg, a gross vehicle mass of 15,000 kg and that tows one semi-trailer, the ordinary registration charge is more than double the primary producer registration charge. In this case, the primary producer rate is less and will apply, and the vehicle is subject to primary producer usage restrictions.

Applying for a primary producer concession

To apply for a concession, you must provide a Declaration of Eligibility for a Registration Concession.

 when you:

• get a new NSW registration
• get seasonal registration
• transfer registration
• change to primary producer registration usage.

You must also provide one of the documents listed below to support your application. This is to prove your eligibility for the concession.

• A declaration, not more than 12 months old and signed by a registered tax agent or accountant, stating the applicant is a primary producer as defined under the Road Transport (Vehicle Registration) Regulation 2017*. This declaration must also include:
  • The full name and address of the Registered Operator claiming the concession, and
  • The full name, business name or company name, the address and Tax Practitioners Board registration number of the tax agent or accountant making the declaration, or
• a Tax Averaging Certificate from the Australian Taxation Office (not more than two years old), or
• a Tax Assessment Notice from the Australian Taxation Office (not more than two years old).

You must also notify us within 14 days if you no longer qualify for a primary producer concession. You should visit a service centre to do this.

Farm vehicles that don't need registration

Some vehicles used for the purpose of primary production do not have to be registered. These include vehicles solely used off road on farmland or where an exemption is provided to cross a road or road-related area which divides land used for the purpose of primary production.

The following types of agricultural implements don't need registration:

• implements towed by a vehicle
• trailers towed by an agricultural machine
• irrigating equipment
• augers
• conveyors
• harvester fronts and harvest bins.

Examples of agricultural machinery are tractors and harvesters.

Reforms to the concession

Legislation passed in October 2021 changed the concession eligibility requirements. These changes were introduced to ensure that only genuine primary producers are granted the concession.

The current eligibility requirement stipulates that all heavy vehicles receiving this concession must be used solely for primary producer business purposes.

Increased penalties and new offences were also introduced to support these changes, including:

• an increased penalty for corporations who attempt to register a vehicle by dishonest means
• a new offence for individuals and corporations who ‘obtain or attempt to obtain a vehicle registration concession by false statement, misrepresentation or other dishonest means’.

Frequently asked questions

For further information, please see the FAQs.