Agritourism Development Pathway
Agritourism is a rapidly growing sector that connects visitors with the land, local produce, and the people who cultivate it.
Agritourism offers significant benefits for both individual operators and the broader visitor economy, especially in regions such as Southern NSW, where the diversity of landscapes and primary production presents strong opportunities for immersive, place-based experiences.
Whether you’re a primary producer, food maker, or rural landholder, agritourism allows you to diversify income streams, strengthen customer relationships, and showcase your unique story. From farm stays and orchard tours to paddock-to-plate dining and farm gate sales, agritourism invites visitors to engage directly with your work, your land, and your region.
Before you begin, we recommend reviewing the Start Here Pathway to ensure your tourism business foundations are in place.
By following this pathway, you’ll be well-positioned to develop and grow a successful agritourism business. Whether you are looking to create a new revenue stream, increase direct-to-consumer sales, or enhance your brand through visitor experiences, agritourism offers exciting opportunities to showcase the best of Southern NSW’s primary industries.
Banner and tile image – Blackwattle Alpacas, Murrumbateman | Credit – Destination NSW
Opportunities for Tourism Operators
Agritourism offers a range of benefits for rural businesses and producers:
- Diversify your income through seasonal events, accommodation, tours, and direct sales.
- Connect with emerging markets like foodies, families, eco-travellers, and international visitors.
- Extend length of stay by offering experiences that deepen regional engagement.
- Enhance your brand by telling the story of your land, produce, and values.
- Leverage recent planning reforms that make it easier to start and grow agritourism ventures.
By embracing agritourism, you not only increase your business’s resilience but also help drive regional economic growth and strengthen local identity.
Image: Markdale Farmstay, Crooked Corner | Credit – Destination NSW
Explore the pathway through the Phases at the bottom of this page, but before you get started, please read the important update about land taxes that may impact new and existing agritourism businesses.
Agritourism and Land Tax Exemptions in NSW
Under current legislation, rural land in NSW is exempt from land tax only when it is used for the dominant purpose of primary production, as defined in Section 10AA of the Land Tax Management Act 1956. This includes activities such as growing crops, maintaining livestock, or beekeeping for the sale of produce. However, if the main use of a property shifts towards non-agricultural activities, such as accommodation, farm tours, workshops, or processing value-added products, the exemption may be lost, and the entire parcel of land could become liable for land tax.
This creates a challenge for operators seeking to diversify through agritourism. While the NSW Agritourism Planning Reforms (2022) were designed to support diversification and make it easier for farmers to offer experiences on their land, the Revenue NSW land tax framework has not yet been updated to reflect these changes. As a result, some activities that are now permitted under planning law may still be considered “non-primary production” for tax purposes, creating uncertainty and potential financial implications for farm-based tourism ventures.
Operators are encouraged to seek professional tax and legal advice before developing agritourism products, as the financial impacts can be significant.
Maintaining accurate records that demonstrate primary production remains the dominant use of the land is essential. Industry organisations and Destination Southern NSW continue to advocate for greater alignment between planning, tourism, and revenue policies to ensure diversification is supported without penalising landholders.
Further Reading and Resources
-
Revenue NSW (2022). Land Used for Primary Production – Sections 10AA Land Tax Management Act 1956 (Ruling LT 097v3)
-
NSW Department of Planning and Environment (2022). Agritourism Planning Changes
- NSW Department of Planning and Environment (2022). Agritourism and Small-Scale Agriculture Development
- The Agritourism Development Blueprint for Regional NSW
-
Australian Regional Tourism (ART) Agritourism Toolkit
-
Destination NSW – NSW First Program
This paythway includes content adapted from Destination NSW’s NSW First Program. We acknowledge and thank Destination NSW for providing these resources.
Phase
Introduction
Explore phase →
Planning & Approvals
Explore phase →
Design & Develop
Explore phase →
Marketing & Distribution
Explore phase →
Strategy & Growth
Explore phase →
