Tax Shock for Farm Trailblazers

NSW Farmers is warning family farms are being hit with significant new land tax bills after diversifying into farmgate sales and agritourism experiences.

The organisation says reports are increasing of producers being charged up to three hundred thousand dollars in land tax for activities such as cellar doors, fruit stalls and pick-your-own operations.

Traditionally, farmland used for food and fibre production has been exempt from land tax, but NSW Farmers says growers are now being penalised for selling what they produce on-farm.

Business Economics and Trade Committee Chair John Lowe says diversification has become essential as farmers contend with drought, natural disasters and rising costs.

He says governments have encouraged farmers to innovate, but current tax settings risk undermining those efforts and threatening the viability of family farms.

NSW Farmers has released a statement of expectations calling for urgent changes to land tax laws, as farm input costs are forecast to rise again in 2026.

That statement can be viewed in full on the NSW Farmers website at nswfarmers.com.au.