There are many different primary producers. These can be an entity such as; sole trader, partnership, company or a trust. However, there are certain tests a primary production business needs to pass in order to be able to utilise any losses incurred in the business.
There are certain business activities that can be carried out that qualify you to be a primary production business. These are:
- Plant or Animal Cultivation
- Fishing and Pearling
- Tree Farming or Felling
There are four tests that you can satisfy to be able of offset losses in the current financial year or against future years.
These are; the assessable income test, profits test, real property test and other assets test.
If you do have multiple business activities, then you may be able to group them together to help satisfy one of the tests if the business activities are similar. However, if they are not similar then the tests need to be applied to each business activity.
Please contact our office on 07 5437 8888 should you need assistance in this area.
Sheridan Wilson – Accountant