Issue
Is the loading of hay bales, from an agricultural property or from a storage facility, onto a vehicle to transport for sale 'agriculture' for the purposes of subsection 22(1) of the Energy Grants (Credits) Scheme Act 2003 (EGCSA)?
Decision
No. The loading of hay bales, from an agricultural property or from a storage facility, onto a vehicle to transport for sale is not 'agriculture' for the purposes of subsection 22(1) of the EGCSA.
Facts
An entity conducts farming operations, growing crops.
Hay is baled on an agricultural property.
Hay bales can remain on the agricultural property or be moved to a storage facility.
An entity operates a diesel loader to load the hay bales, from either the agricultural property or from a storage facility, onto a vehicle to transport for sale.
Reasons for Decision
'Agriculture' is relevantly defined in subsection 22(1) of the EGCSA as: (b) the cultivation or gathering in of crops; or ... and includes: ... (i) a sundry agricultural activity.
Agriculture includes 'cultivation or gathering in of crops' and 'pasturage.' These activities have occurred prior to the hay being received at the hay baling, packing and storage facility, and therefore the most relevant activities to consider is 'sundry agricultural activities.'
Sundry agricultural activity is defined in section 27 of the EGCSA. Activities that constitute sundry agricultural activities can be relevantly described as: (b) hay baling on the agricultural property where the hay was cultivated; or ... (f) the storage of produce of a core agricultural activity on an agricultural property where a core agricultural activity is carried on; or
Hay baling involves the packing of hay or straw into bales or bundles in paddocks for storage or transportation and any subsequent pressing and re-baling of that hay. For a hay baling activity to be a sundry agricultural activity, the activity must be carried out on the same agricultural property on which the hay was grown.
The gathering in of the crop ceases when it is physically collected together for the first time on a farm.
The sundry agricultural activity of hay baling ceases once the hay is baled and either remains on the agricultural property or moved to storage.
An entity loads the hay bales from the agricultural property or storage shed onto a vehicle to transport for sale.
The subsequent loading of the hay bales on to vehicles to transport for sale, from the agricultural property or from the storage facility, is not a qualifying activity as it occurs after the crop has been gathered in and hay is baled.