How is a "primary production" business defined in the ATO Green Book?

A "primary production" business is specifically defined within the context of the ATO Green Book as activities that are directly associated with the extraction and harvesting of natural resources. This includes sectors like agriculture, forestry, fisheries, and mining, which are fundamental for producing raw materials and food for the economy.

These activities are considered primary because they form the base layer of the production cycle, providing essential inputs for further processing or manufacturing. By focusing on natural resource extraction and management, primary production businesses play a crucial role in sustaining other industries and contributing to economic growth.

Options involving financial services, tech industry activities, or retail business activities fall outside the scope of primary production, as these sectors are focused on different types of value creation that do not involve the direct extraction or production from natural resources.

Understanding the definition of primary production is important for tax purposes and eligibility for various deductions and incentives as specified by the ATO.