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APPLICATION FOR PRIMARY PRODUCTION CLASSIFICATION

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APPLICATION FOR PRIMARY PRODUCTION CLASSIFICATION Powered By Docstoc
					 Department of Treasury                                                                                                            State Revenue Office
                                                    PERSONAL INFORMATION PROTECTION STATEMENT
 and Finance
                                                    Personal information will be collected from you by the Commissioner of
 ABN 25 628 526 128                                 State Revenue and will be used for the purpose of administering the
                                                    Taxation Administration Act 1997 [the TAA] and the Land Tax Act 2000.
                                                    You are required to provide this information under the relevant provisions
 Land Tax Act 2000                                  of the TAA and Land Tax Act 2000 and Regulations made under those
 Taxation Administration Act 1997                   Acts.
                                                                                                                                       GPO Box 1374, Hobart 7001
                                                    Your personal information may only be disclosed in accordance with the                     Account Enquiries:
 W K Sawford                                        provisions of the TAA and will be managed in accordance with the                                 03 6233 3068
 Commissioner of State Revenue                      Personal Information Protection Act 2004. You may access your personal              For 63 & 64 area codes call
                                                    information on request to the Commissioner of State Revenue. You may                             1800 001 388
                                                    be charged a fee for this service.
 OFFICE USE ONLY                                                                                                                               www.sro.tas.gov.au
 AUTHORISED........................                                                                                              Email: taxhelp@treasury.tas.gov.au
 DATE......................................

 LTX 0092 30 Sep 2008




                           Application for Primary Production Land Classification

 Notes:
      1.      NOT ALL OF THE FOLLOWING QUESTIONS WILL BE RELEVANT TO YOUR ACTIVITIES AND/OR YOU MAY NOT NEED
              TO ANSWER ALL OF THE LISTED QUESTIONS
      2.      TO BE CONSIDERED FOR PRIMARY PRODUCTION LAND CLASSIFICATION THE LAND OWNER MUST SIGN THE
              DECLARATION CONTAINED IN SECTION D
      3.      WHERE THE LAND IS LEASED, THE USER OF THE LAND MUST ALSO COMPLETE AND SIGN THE DECLARATION
              CONTAINED IN SECTION G
      4.      FAILURE TO INCLUDE INFORMATION OR SATISFY ME AS TO THE REASONS WHY THE INFORMATION IS NOT
              AVAILABLE MAY LEAD TO YOUR APPLICATION BEING REJECTED
      5.      WARNING: A COURT IMPOSED FINE OF UP TO $12 000 (100 PENALTY UNITS) MAY BE APPLIED TO INDIVIDUALS OR
              $60 000 (500 PENALTY UNITS) TO A BODY CORPORATE WHERE FALSE OR MISLEADING INFORMATION IS
              PROVIDED

 A. Contact information
1. Please advise:
              Contact name/s of the land owner;

               Postal address; and                                                                                                           Postcode

               Daytime contact number.
        (       )


2. Is the Land subject to a lease?
                                              YES           NO

              If “yes”, please advise:
              Contact name of the land user;

               Postal address; and                                                                                                           Postcode

               Daytime contact number.
        (       )

      NOTE: Where the land is not leased, the Land Owner must answer all questions listed in Sections B and C, complete and
      sign the declaration contained in Section D and provide the information requested in Attachment 2 of this Application.

      NOTE: Where the land is leased, the Land User must answer all questions listed in Sections E and F, complete and sign the
      declaration contained in Section G and provide the information requested in Attachment 2 of this Application.


                                                                                   Page 1 of 12
     B. BACKGROUND INFORMATION ABOUT YOUR ACTIVITY – LAND OWNER
B. Background information about your activity – land owner
3. Are you registered with the ATO as a Primary Producer?
                          YES           NO

          If “yes”, what is your ABN?



4. What is the Property Identification Number (PID) and address of each parcel of land you are seeking to
   have classified as primary production land?
          Property ID                                          Address                                              Postcode




5. When do you consider that you commenced to operate a business of Primary Production on the land?


       D     D           M      M            Y      Y      Y     Y

6. How long have you owned the property?


          Years/Months
    If the property was purchased since 1 July, please provide the settlement date of the purchase.


      D      D            M     M             Y      Y     Y      Y

7. Describe the type/s of primary production you were engaged in for each parcel of land listed in Q4 as at
   1 July …………………(Insert year)




8. If the land is used for a number of different purposes, advise the proportion of the land used for each
   purpose (eg cropping, livestock, processing plant 1 , storage, administration etc).




9. Has the land been declared a Private Timber Reserve under the Forest Practices Act 1985 2 ?

                          YES           NO

10. Is the land subject to a forest practices plan certified by the Forest Practices Authority under the State
    Permanent Forest Estate Policy?

                          YES           NO



1
  You are only entitled to apply for PPL classification of land containing a processing plant where you exclusively process your own
  produce.
2
  You are only entitled to apply for PPL classification of land containing a processing plant where you exclusively process your own
  produce.
                                                            Page 2 of 12
       IF “YES” YOU DO NOT NEED TO ANSWER ANY MORE QUESTIONS AS THE LAND WILL BE CLASSIFIED AS
       PRIMARY PRODUCTION LAND.



11. Are any of the properties listed at Q4 used in conjunction with existing land, that you own or lease, that has
    already been classified as primary production land?

                             YES           NO

           If “yes”, provide details of the PID for that/those properties.

           Property ID                                            Address                                           Postcode




12. Are you preparing all or part of the land for primary production activities?

                             YES           NO

       If “yes”, provide details of the preparatory work carried out (if not covered elsewhere in this application).




13. Do you intend subdividing or developing the land for sale 3 ?

                             YES           NO

           If “yes”, please provide details of:
                    . the current status of that development work
                    . the date that planning approval was granted
                    . the anticipated date/s that the lots will be advertised for sale




3
    You are only entitled to apply for PPL classification of land containing a processing plant where you exclusively process your own
    produce.
                                                               Page 3 of 12
 C. Specific questions to be answered by the land owner about their activities
 TO ALLOW ME TO CONSIDER YOUR APPLICATION IN TERMS OF THE CRITERIA NOTED IN ATTACHMENT I, THE LAND OWNER (WHERE
 THE LAND OWNER IS ALSO THE LAND USER) MUST ANSWER THE FOLLOWING QUESTIONS:

14. Purpose and intention:

        Are you employed in some other area or pursuit? (If so please provide details).




15. Profit motive and profitability of the activity:

        Does a business plan exist? (If so, please provide a copy of the plan as requested in Attachment 2).

                        YES          NO

        What were the results of your research into the viability of the activity?




        What are the sales forecasts for the activity?



        What types and level of costs do you expect to incur before the activity becomes profitable?




        How much capital is to be invested?



        Where is the capital coming from (for example, own savings, loan funds)?



        Describe your previous experience and expertise in this activity.




16. Repetition and regularity of the activity:

        How much time is spent on the activity?



        What tasks are performed on a regular basis?




        How regular are purchases and sales made?


                                                       Page 4 of 12
17. Activity of the same kind:

       Describe the methods used in the activity with regard to cultivation or raising livestock
       (as the case may be).




       What relevant licences have been obtained?



18. Organisation:

       Describe how the activity is conducted. (For example detail the tasks that are carried out on a weekly,
       monthly or annual basis; describe how you sell your produce or stock).




       How and what records are kept?


       What professional advice is/was sought?




19. The size and scale of the activity:

       What land area is used in the activity?



       Is there a private residence on the land?

            YES          NO

       What improvements to the land such as fences and sheds, clearing and fertilizing have been
       undertaken?




       List the equipment/plant that has been purchased.




       How many livestock are involved?




                                                   Page 5 of 12
 D. Land owner declaration*




I,

             Name:                                         do solemnly declare that all of the information
                                                           that I have completed in this application is true
                                                           and correct.




         Signed




         LAND OWNER

     * This declaration MUST be completed by all land owners whether they are using the land or the
       land is leased out to another user.


     If your land tax has been overpaid as a result of this application, please advise details of your bank account,
     which will enable the refund to be paid direct to your account;
       BSB             Account Number              Bank Name and Branch




     RETURN THE INFORMATION REQUESTED IN ATTACHMENT 2 TOGETHER WITH THE COMPLETED APPLICATION
     AND THIS SIGNED DECLARATION TO THE STATE REVENUE OFFICE.


                                                     Page 6 of 12
    E. Background information about your activity – land user

    20. Are you registered with the ATO as a Primary Producer?

                             YYES            NO

             If “yes”, (what is your ABN?):


    21. What is the Property Identification Number (PID) and address of each parcel of land you are seeking to
        have classified as primary production land?
              Property ID                                            Address                                           Postcode




    22. When do you consider that you commenced to operate a business of Primary Production on the land?


        D      D            M      M            Y     Y      Y     Y
23. How long have you leased the property?


             Years/Months
    24. What is the expiry date on the lease for the property?

         D       D           M      M             Y    Y      Y      Y
    25. Describe the type/s of primary production you were engaged in for each parcel of land listed in Q21 as at
      1 July …………………(Insert Year)




26. If the land is used for a number of different purposes, advise the proportion of the land used for each
    purpose (for example, cropping, livestock, processing plant 4 , storage, administration etc).



27. Are any of the properties listed at Q21 used in conjunction with existing land that you own or lease that has
    already been classified as primary production land?
                             YES           NO

            If “yes", provide details of the PID for that/those properties




28. Are you preparing all or part of the land for primary production activities?
                             YES           NO

            If “yes”, provide details of the preparatory work carried out (if not covered elsewhere in this application).




4
    You are only entitled to apply for PPL classification of land containing a processing plant where you exclusively process your own
    produce.
                                                               Page 7 of 12
 F. Specific questions to be answered by the land user about their activities
 TO ALLOW ME TO CONSIDER YOUR APPLICATION IN TERMS OF THE CRITERIA NOTED IN ATTACHMENT 1, THE LAND USER (WHERE
 THE LAND OWNER IS NOT THE LAND USER) MUST ANSWER THE FOLLOWING QUESTIONS:


29. Purpose and intention:
       Are you employed in some other area or pursuit?

                        YES          NO

        If so please provide details.



30. Profit motive and profitability of the activity:

        Does a business plan exist?

                        YES          NO

        If so, please provide a copy of the plan as requested in Attachment 2

        What were the results of your research into the viability of the activity?




        What are the sales forecasts for the activity?


        What types and level of costs do you expect to incur before the activity becomes profitable?




        How much capital is to be invested?


        Where is the capital coming from (eg own savings, loan funds etc)?


        Describe your previous experience and expertise in this activity.




31. Repetition and regularity of the activity:

        How much time is spent on the activity?


        What tasks are performed on a regular basis?




        How regular are purchases and sales made?


                                                       Page 8 of 12
32. Activity of the same kind:

       Describe the methods used in the activity with regard to cultivation or raising livestock (as the case may
       be).




       What relevant licences have been obtained?



33. Organisation:

       Describe how the activity is conducted? (For example detail the tasks that are carried out on a weekly,
       monthly or annual basis; describe how you sell your produce or stock).




       How and what records are kept?



       What professional advice is/was sought?




34. The size and scale of the activity:

       What land area is used in the activity?



       What improvements to the land such as fences and sheds, clearing and fertilizing have been
       undertaken?




       List the equipment/plant that has been purchased.




       How many livestock are involved?




                                                  Page 9 of 12
 G. Land user declaration**




I,

           Name:                                  do solemnly declare that all of the information
                                                  that I have completed in this application is true
                                                  and correct.




        Signed




        LAND USER

     ** This declaration MUST be completed by all land users where that person is leasing the land
       from the land owner.




     RETURN THE INFORMATION REQUESTED IN ATTACHMENT 2 TOGETHER WITH THE COMPLETED APPLICATION
     AND THIS SIGNED DECLARATION TO THE STATE REVENUE OFFICE.




                                            Page 10 of 12
                               ATTACHMENT 1: CRITERIA TO BE ADDRESSED

To satisfy me that you are carrying on a business of primary production you will need to provide information in
relation to the following criteria, which have been developed by the courts in the course of deciding cases
involving courts over a lengthy period:

Prospect of Profit

While it is not necessary for the business to make a profit each year, the landowner must be able to show the
prospects of how the activity can make a profit.

Intention of activity

There must be an intention to run the activity such that it will make a profit. However, having the mere intention
of making a profit is insufficient to claim PPL classification on the land.

Repetition and regularity of activities

The repetition of activities by the same person over a period of time on a regular basis is an aid in determining
whether a business is being conducted.

Size and Scale of activities

The larger the scale of activities, the more likely it is to be a genuine business activity. However, the factor is
not enough alone to claim PPL classification on the land.

Activities conducted in a similar manner to the industry

When determining whether an activity is a business, comparisons will be made to the way the activity is
conducted in a similar manner to that of other participants in the industry. Comparisons will also be made to
those conducting the activity as a hobby or form of recreation.

Significant commercial purpose

Activities carried out for a commercial purpose and in a commercially viable manner are considered business
activities. This can be judged using the above indicators in combination. Indicators of commercial purpose
include the existence of a business plan, seeking expert and technical advice, soil and water analyses and
careful consideration of the market for the product being produced.




                                                   Page 11 of 12
                  ATTACHMENT 2: SUPPORTING DOCUMENTATION REQUIRED

Please provide copies of the following documents (or explain why they are not available; for example,
it is accepted that financial statements are not likely to be available in your first year of operation. In
this situation, it is expected that you would have a Business Plan or similar):

   1. Financial statements relating to the activity on this land:
         - Statement/s of Financial Performance (that is, Profit & Loss Statements) including
            depreciation schedules for up to the last three (3) financial years; and
         - Statement of Financial Position (that is, Balance Sheets) as at the last 30 June.

   2. Copy of income tax returns in relation to the activity for up to the last three (3) financial years.

   3. Cash flow projections for the current financial year plus for two future years.

   4. Business Plan including the following details:
            •     A description of the nature of the business;
            •     Details of the markets to which you propose to sell and realistic estimates of
                  quantity and volume of sales;
            •     The amount of income expected to be derived from the activity;
            •     Details of the research that you have conducted; for example:
                  o       who have you spoken to?
                  o       what information have you collected?
                  o       what previous knowledge did you have?;
            •     Information about the property on which you propose to conduct the business;
                  for example:
                  o       the land area
                  o       the distance of the property from the applicant's home
                  o       whether irrigated
                  o       whether soil and water tested
                  o       whether rainfall sufficient for the proposed activity;
            •     Information about expected expenses and capital outlays; for example:
                  o       the cost of travel
                  o       electricity, gas and water
                  o       cost of purchasing plant and equipment; and
                  o       cost of purchasing stock.
            •     Information about how you propose to pay for the expenses and capital outlays.

   5. Any other information you consider relevant to your application.




                                               Page 12 of 12

				
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Description: APPLICATION FOR PRIMARY PRODUCTION CLASSIFICATION