In a decision handed down [on Tue 17.3.2015], the NSW Civil and Administrative Tribunal held the land tax exemption sought by 2 taxpayers for a child care facility under s 10(1)(u) of the Land Tax Management Act 1956 (NSW) did not apply in respect of the property for the 2014 land tax year.
The taxpayers purchased the property in 2013 and developed a child care centre on the land which operated from April 2014 when approval was obtained. The Commissioner assessed the land to land tax in August 2014.
- The taxpayers claimed the exemption under s 10(1)(u) applied. They also argued the assessment was unfair, unreasonable or illogical, because it was common ground that they intended to use the land solely for the purposes of a day care facility from the time they purchased it in 2013, and did so from April 2014.
- The Commissioner contended the exemption applies only where, as at the “taxing date” (midnight on 31 December 2013), the land was actually being used as a child care centre with the relevant approval.
The Tribunal affirmed the Commissioner’s assessment. It said the exemption was not attracted merely by developing the property with a view to conducting a child care operations on it. The Tribunal also held that there was “nothing unfair, unreasonable or illogical” in the Commissioner’s decision.
(Joukhador & Anor v Chief Comr of State Revenue [2015] NSWCATAD 43, NSW Civil and Administrative Tribunal, Perrignon SM, 17 March 2015.)
[LTN 51, 17/3/15]