On Wed 12.10.2016, the NSW Civil and Administrative Tribunal refused a couple’s (the taxpayers) claim for the principal place of residence (PPR) land tax exemption for the 2013 to 2015 land tax years.

In October 2012, the taxpayers purchased the subject property.

  • The taxpayers said the house on the property was “uninhabitable” and their initial plan was to knock it down and rebuild with the intention that they would live in the new home.
  • At some stage, they changed plans and decided to renovate.
  • However, after some work, they decided to stop the renovations and rented out the property.
  • The property was tenanted from March 2014 to June 2015.
  • The Commissioner became aware of the renting of the property through the Rental Bond Board and made land tax assessments.
  • The property is now occupied by the taxpayers’ son.

The Tribunal affirmed the land tax assessments holding that the statutory exemptions could not apply for each of the land tax years in question. It noted that as at the date of the hearing, some 4 years after the taxpayers had purchased the property, they still have not used or occupied the land as their PPR. The Tribunal also noted that there was no evidence that they have, in accordance with their stated intention to knock down and rebuild, lodged a development application with the local council to undertake the work they said they intended to undertake.

(Lloyd  & Anor v Chief Comr of State Revenue [2016] NSWCATAD 230, NSW Civil and Administrative Tribunal, Frost SM, 12 October 2016.)

[LTN 197, 12/10/16]