NSW Selling, Home Business & Farm-Stay Rules: What the State Actually Sets

Selling what you grow or keep in NSW sits under a different system depending on what it is and who you're selling to, home business approval runs on a separate track again, and farm-stay accommodation only got its own dedicated planning code in 2022. This article covers what the state actually sets for each, before your specific council's requirements layer on top.

These three activities sit under three different systems in NSW. Selling food runs through the Food Act and either council or the NSW Food Authority depending on risk. Running a home business more broadly runs through the Codes SEPP. Farm-stay and agritourism got their own dedicated planning code only in 2022. Each is covered as its own section below.

Selling produce: council notification, or a Food Authority licence for higher-risk goods

Selling food in NSW, from a market stall, farm gate, or online, requires notifying either your council or the NSW Food Authority, depending on what you're selling and who to. Most low-risk food businesses (fruit, veg, jams, baked goods) notify their local council before trading. A Food Authority licence, a more involved approval, is required specifically for businesses handling meat, seafood, dairy, eggs, or supplying food to vulnerable people (aged care, hospitals) — with one useful exemption: egg producers selling 20 dozen (240 eggs) or fewer a week, and poultry primary producers with 100 birds or fewer, only need council notification, not a full Food Authority licence.

Since 1 July 2018, council regulates domestic kitchens selling directly to the final consumer (farm gate, markets, online direct sales), while the NSW Food Authority regulates domestic kitchens selling to other businesses (supplying a cafe or restaurant to on-sell). Councils can also set their own additional local limits on top of the state framework — Bathurst Regional Council, for example, caps home food preparation at 10kg a week and requires an approved Food Safety Plan, and explicitly won't approve certain high-risk items (raw egg products, sous vide, food for vulnerable persons) as a home-based business at all.

Home business: exempt if you meet the Codes SEPP conditions

A home business can generally operate without council development approval under the Codes SEPP (State Environmental Planning Policy (Exempt and Complying Development Codes) 2008) if it meets several conditions together: no more than 2 employees who don't live at the residence, no adverse impact on neighbourhood amenity (noise, smell, traffic and similar), no more than 1 business identification sign, and any goods sold are produced in the home business itself (an exception applies for online retail sales of goods made elsewhere). If a home business also handles food for sale, the separate Food Act notification requirement above still applies on top of this exemption — the two systems are independent of each other.

Farm-stay & agritourism: a dedicated code since 2022

NSW added a dedicated Agritourism Code to the Codes SEPP in 2022, creating exempt and complying development pathways for three defined land uses: farm stay accommodation (overnight stays in buildings or moveable dwellings like tents and caravans), farm gate premises (visitor interaction with farm produce — picking, sales, tastings, cafes), and farm experience premises (farm life experiences — tours, horse riding, weddings, retreats). These pathways are generally only available on land zoned RU1, RU2 or RU4, or other zones where agritourism, extensive agriculture, or intensive agriculture is permitted under the council's LEP.

A useful distinction: converting an existing, already-approved rural workers' dwelling to farm stay accommodation is exempt development, needing no further approval. Installing a new moveable dwelling (a caravan or manufactured home) on a farm, however, needs a Section 68 approval under the Local Government Act 1993 — the same approval process covered in our Power & Wastewater article for septic systems, applied here to a different purpose. Worth stating plainly: owning the land doesn't exempt you from needing approval to host paying guests — a common misconception.

An important disclaimer, worth taking seriously

The Food Act notification/licence split, the Codes SEPP home business exemption, and the 2022 Agritourism Code are all verifiable, state-wide facts. But your council's own local food safety limits, whether your specific zoning permits agritourism uses, and whether your farm-stay proposal meets every complying development standard all depend on your specific circumstances. Confirm directly with your council and the NSW Food Authority before starting a food business, home business, or farm-stay operation.

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