Income tax: is a taxpayer who carries on business as a livesheep exporter carrying on a business of primary production?

No. The business of a "livesheep exporter" is not a business of primary production as defined in section 995-1 of the Income Tax Assessment Act 1997 .

The purchase, transportation, shearing, handling, temporary holding and preparation in feedlots of sheep for export, is not considered to be a business of primary production when conducted by a livesheep exporter, as distinct from a farmer or grazier carrying on traditional farming operations.

Any production activity which may occur, is incidental to the operations and insufficient to bring them within the definition of primary production.

Even where the operations are conducted on part of a farming property, the business still does not become one of primary production, nor is that part of the property used for the purpose of agricultural or pastoral pursuits.

It follows that the special concessions allowable to primary producers are not allowable to "livesheep exporters". For example, deductions for certain expenditure associated with land under the provisions of subdivision 40-G, are not allowable.