The NSW Civil and Administrative Tribunal has refused a couple’s (the taxpayers’) request for the principal place of residence (PPR) land tax exemption to apply to their new home for the 2013 land tax year.
The couple had purchased a new home and settlement of the purchase occurred on 17 May 2012. The couple then made arrangements to demolish the existing dwelling and build a new dwelling on the property. The couple then sold their old home and settlement occurred on that property on 18 January 2013. The Commissioner allowed the PPR land tax exemption for the old home but not for the new home as well. The Commissioner refused the sought after exemption on the basis that the new home was not purchased within the 6 months preceding the taxing date (ie 31 December 2012) as required by Clause 7(2)(b) in Sch 1A of the Land Tax Assessment Act 1956 (NSW).
The Tribunal affirmed the Commissioner’s assessment noting there was no provision under the Act to provide relief in the circumstances. The Tribunal noted the only option for the couple was for them to have sold their old home before 30 December 2012; however, as that did not happen, they were liable to land tax in respect of the new home for the 2013 land tax year.
(Hall & Anor v Chief Comr of State Revenue [2014] NSWCATAD 64, Verick SM, 15 May 2014.)
[LTN 98, 23/5/14]