The Taxpayers (a couple) have, in the main, been unsuccessful before the NSW Supreme Court in seeking the intended principal place of residence (PPR) land tax exemption in respect of a property for the 2002 to 2006 land tax years.

The issue was whether the property that was purchased by the taxpayers in 2001 and sold by them in 2007 was exempt from land tax pursuant to s 10T of the Land Tax Management Act 1956 (NSW) on the ground that it was the taxpayers’ intended PPR. That section was repealed as at 31 December 2003.

The taxpayers contended that by reason of the transitional provisions, s 10T continued to apply in respect of the 2004 to 2006 land tax years. The Commissioner disagreed and issued amended assessments. The taxpayers’ objection was disallowed and the matter came before the Court.

Although the Supreme Court held the s 10T concession was not available to the taxpayers for the 2002 and 2003 land tax years, it held the Commissioner was out of time to reassess the taxpayers’ liability. This meant the taxpayers were not liable for the full amount of land tax otherwise payable. (The Commissioner had originally allowed the s 10T concession for the 2002 land tax year and the benefit of the premium property tax threshold for the 2003 land tax year.)

However, the Court concluded that the assessments for the 2004 and 2006 should be confirmed.

(Delmege & Anor v Chief Comr of State Revenue [2014] NSWSC 1865, NSW Supreme Court, White J, 24 December 2014.)

[LTN 1, 5/1/15]