Introduction
From 1st July 2000, Council’s that adopt a fixed charge as part of their general rates need to develop a system that permits a ratepayer who operates a “single farm enterprise” across two or more pieces of adjoining land to make application for only one fixed charge to apply.
What Constitutes a Single Farm Enterprise
A “single farm enterprise” must be comprised of two or more pieces of rateable land, which are farmland, as set out above, and are occupied by the same person or persons.
Section 152 of the Act defines a “single farm enterprise” as:
- Single Farm Enterprise means land which is used wholly or mainly for the business of primary production as a single enterprise and is occupied by the same person or persons. The land which constitutes the single farm enterprise need not be adjoining parcels of land.
- Where the land has upon it a dwelling which is used as a principal place of residence for one of the occupiers, the land with the dwelling must adjoin at least one of the other pieces of land used for the single farm enterprise.
- If different persons occupy any of the allotments which constitute the farm, then a single farm enterprise does not exist.
The definition imposes an absolute requirement that all of the occupiers must be the same for all the allotments comprising the single farm enterprise (regardless of who may own the land). Where multiple dwellings are located on a farming enterprise it will be necessary for Councils to be advised of every occupier in order to assess whether a single enterprise exists.
Application Form Information
Section 152(3) of the Act provides that a ratepayer may only gain the benefit of the “single farm enterprise” categorisation on application to the Council and by provision of such information or evidence as the Council may reasonably require, that the relevant land is within the ambit of the provision.
The information or evidence that the Council will reasonably require will include the following:
- The names of all the persons who own and occupy each allotment (as comprised in a Certificate of Title) of the land claimed to be the single farm enterprise;
- A description of the use to which all of the allotments of land are put;
- If not the owner, a copy of any leases or licences, or details of the rights to occupy any of the allotments comprising the single farm enterprise;
- A list of the names of all persons who derive income, or claim deductions for the purposes of income tax as a result of the farming activities conducted upon each of the allotments comprising the single farm enterprise.
If the occupation of any of the allotments differs, then a “single farm enterprise” by definition, will not exist. Also, if the persons who derived income or claim deductions for income tax purposes differ a “single farm enterprise” will not exist as the land will not be “farmed as a single enterprise”.
Application Due Date
To allow the Council to set appropriate rate levels at its annual budget meeting,
applications for Single Farm Enterprise must be submitted by 31st March of the
current financial year. These applications will apply to the following financial year.
Please note: No application will be assessed retrospectively.
Regional Landscape Levy And Single Farm Enterprise
The Eyre Peninsula Landscape Board applies a fixed-charge levy annually, which is collected by the District Council of Cleve on its behalf. Where multiple rateable properties are approved by Council as forming a Single Farm Enterprise (SFE) under section 152B of the Local Government Act 1999, the Regional Landscape Levy is applied only once per enterprise within the Council’s area, rather than on each individual assessment. This is consistent with the Eyre Peninsula Landscape Board’s approach, which recognises SFE arrangements for the purpose of levy consolidation.
Single Farm Enterprise Definition
Local Government Act 1999
Section 152(2)(d) provides that:
“If two or more pieces of rateable land within the area of the council constitute a single farm enterprise, only one fixed charge may be imposed against the whole of the land”
The term “single farm enterprise” is defined in Section 152 in the following terms:
“2. A reference to a single farm enterprise is a reference to two or more pieces of rateable land-
(a) Which -
(i) are farm land; and
(ii) are farmed as a single enterprise; and
(iii) are occupied by the same person or persons,
whether or not the pieces of land are contiguous; or
(b) Which -
(i) as to all the pieces except one, are farm land farmed as a single enterprise occupied by the same person or persons; and
(ii) as to one piece contiguous with at least one of the other pieces, is the principal place of residence of that person or one of those persons.”
The term “farm land” is defined in Section 4(1) of the Act to mean:
“land used wholly or mainly for the business of primary production”
What is “Farm Land”?
In order to constitute a “single farm enterprise”, two or more pieces of rateable land must be “farm land” as defined by Section 4(1) of the Act. Land is “farm land” for the purposes of the Act, only if the land is used wholly or mainly for the “business of primary production”. The term “business of primary production” is not defined in the Act.
There are, however, two statutory provisions, which may provide some guidance upon the interpretation to be given to when land is used for the business of primary production for the purposes of a single farm enterprise:
Section 5(1) of the Valuation of Land Act 1971 defines the term “business of primary production” to mean:
“the business of agriculture, pasturage, horticulture, viticulture, apiculture, poultry farming, dairy farming, forestry or any other business consisting of the cultivation of soils, the gathering in of crops or the rearing of livestock or consisting of the propagation and harvesting of fish or other aquatic organisms.”
Rates - Single Farm Enterprise Application Form