Private ruling: Am I in business - primary production
Published: September 2013
Ruling period: Year ending 30 June 2013
Date scheme commenced: 1 July 2012

Ruling: Q1: Is a contract worker considered to be carrying on a business of primary production? | A1: No

Relevant facts and circumstances: You are a contract worker You are contracted to undertake services relating to farm animals. You do not own the farm animals

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 995-1(1)

Reasons for decision: Summary: One of the categories of a "primary production business" defined in subsection 995-1(1) of the Income Tax Assessment Act 1997 , is a business of maintaining animals for the purpose of selling them or their bodily produce. In your case, you are a contract worker. You are engaged by farmers to provide services in relation to their animals. The animals you perform these services on are not owned by yourself, they are the property of the farmers who engage you. You are providing ancillary services to these farmers. For the purposes of the averaging provisions you are not considered to be maintaining the animals for the purpose of selling them or their bodily produce as you have no legal rights over these animals. You are merely completing contracted services for payment. Therefore you would not be considered to be carrying on a business of primary production for the purposes of the averaging provisions.