Getting your head around what you can and can’t claim as a small livestock producer doesn’t have to be overwhelming. Whether you’re running a few head of cattle, breeding sheep, or managing a small mixed operation, understanding what counts as a legitimate business expense can make a big difference — not just for your tax return, but for running a more efficient and compliant operation.

What You Can Generally Claim

If your property activities are run as a primary production business, many everyday expenses related to your livestock, land, and business operations may be deductible. Here are some common examples:

Animal & Property Costs

Feed, mineral blocks, supplements, and animal health treatments (vaccinations, drenches, ear tags, vet costs).
NLIS, PIC, and LPA registrations or accreditations.
Fencing repairs, water troughs, sheds, gates, and other on-farm maintenance used for livestock.

Dogs, Bikes & Vehicles

Working dog feed, worming, vet bills, and equipment.
Fuel for farm bikes, quads, and utes used for livestock work.
Trailer registration, maintenance, and insurance.
A fair percentage of your car registration, insurance, and servicing costs that directly relate to property or livestock activities.

Business & Compliance

Business registration, accounting fees, and bookkeeping costs.
Livestock cartage, freight, and fuel for transporting animals, feed, or supplies.
Compliance and training — for example, LPA accreditation, biosecurity workshops, or animal health courses.

Tip: Keep all receipts and records organised. The ATO may ask for evidence that expenses were directly related to your business activity.

When Is It a Hobby and When Is It a Business?

Not everyone with livestock is automatically considered a primary producer for tax purposes.

You’re generally recognised as a primary producer when you operate your livestock activities with a genuine intent to make a profit — not just for lifestyle or hobby purposes.

If your operation is more of a hobby farm, you may not be eligible to claim the same deductions or GST benefits. However, many small-scale producers are surprised to learn they actually do meet the requirements once they’re set up properly (with a business name, ABN, and records showing regular trading activity).

Please refer to the link below for clarity:

https://www.ato.gov.au/businesses-and-organisations/starting-registering-or-closing-a-business/starting-your-own-business/are-you-in-business

Understanding GST, Turnover & Fuel Tax Credits

GST Registration:

You’re only required to register for GST if your annual turnover exceeds $75,000. Below that threshold, registration is optional. However, some producers choose to register voluntarily if they have regular business expenses and want to claim GST credits.

Primary Producer Definition:

You don’t need to be a large-scale operation to be classed as a primary producer — even small cattle or sheep operations can qualify if they are genuinely run for profit.

Refer to the below link:

https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/primary-producers/primary-production-activities

Fuel Tax Credits:

If you’re registered for GST and use fuel for business purposes (for example, for your quad bike, tractor, or generator), you may be able to claim fuel tax credits. You’ll need:

An ABN and GST registration,
Accurate fuel records, and
To meet ATO eligibility for off-road or agricultural use.

Refer to the below link:

https://www.ato.gov.au/single-page-applications/calculatorsandtools#FTCCalc/questions

Keep It Simple: Good Records = Good Business

No matter your size, getting into the habit of tracking your expenses will make life easier come tax time. Keep receipts for:

Fuel and vehicle expenses
Livestock feed and treatments
Compliance and registration costs
Property maintenance and infrastructure

A simple spreadsheet or notebook can go a long way in keeping things clear.

Final Word

Running livestock — whether it’s 10 head or 100 — is still running a business. The better your records, the more confident you’ll be in claiming what you’re entitled to and demonstrating compliance.

If you’re unsure whether you meet the definition of a primary producer or should register for GST or fuel tax credits, have a chat with your accountant or a rural tax adviser. It’s always worth getting advice that fits your operation and to see if you qualify to be a primary producer.

What Can Small Livestock Producers Claim at Tax Time?

LPA Compliance & Best Practice

Parasite Resistance: The Hidden Threat to Livestock Productivity