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  • The primary production duty exemption (‘PPE’) is a generous and flexible exemption that can allow land transfers to different entity types.
  • The key to efficiently obtaining the PPE is to ensure that the initial PPE application addresses each of the PPE conditions, backed with relevant documentary evidence.

The value of Australian farmland has risen astronomically over the years – the 2024 ABARES Farmland Price Indicator reports that the average price per hectare increased by more than 130 per cent since 2013. Often the family farm is a farmer’s most valuable asset.

Section 274 of the Duties Act 1997 (NSW) provides an intergenerational primary production exemption (‘PPE’) from NSW duty on the sale, transfer, lease or lease assignment of NSW primary production land where certain conditions are met.

Originally, the PPE required the transferee to be a natural person, which was problematic for asset protection and general tax planning. This changed after 19 May 2022 when the exemption was expanded to allow for transfers to other entity types. In May 2023, Revenue NSW updated its key PPE guidance (Revenue Ruling DUT 050v2) to incorporate this change.

Only PPE transactions where both the transferor and transferee are natural persons can be processed via Electronic Duties Returns.

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