The NSW Administrative Decisions Tribunal has held that a taxpayer was entitled to the principal place of residence (PPR) land tax exemption in respect of a property for the 2006 to 2009 land tax years.
At all relevant times, the taxpayer lived on the property in a purpose-built garage. Whilst living there, taxpayer oversaw the development of a new house on the property (which development continued into mid-2012). The Tribunal heard various details of the “rough” living conditions on the property eg use of the mother’s residential address as the taxpayer’s postal address, use of his employer’s or neighbour’s bathroom facilities before installing temporary facilities in the house, minimum furnishings and other living facilities in and around the garage, electricity and water use and connections, how the taxpayer entertained visitors on the property, etc. The Commissioner submitted that mere occupation of land by a taxpayer, even as his/her exclusive place of residence, was insufficient to secure the PPR exemption, and that it was also necessary that such occupation be of a building “designed, constructed or adapted for residential purposes”.
The Tribunal held the property was a parcel of residential land and that the taxpayer had used and occupied the property as his principal place of residence in respect of the relevant years. The Tribunal said that in this matter, it was the combination of all buildings on the land, which was relevant in determining whether the land was “residential land” rather than considering the design, construction or adaptation of a single building such as the garage. It found that although there was no evidence of hot running water available until late 2009 and the electricity connection to the house was initially of a temporary nature, those did not materially detract from the buildings on the land being “designed, constructed or adapted” for residential purposes throughout the relevant period. Accordingly, the land tax assessments were set aside.
(Payne v Chief Comer of State Revenue [2013] NSWADT 88, NSW Administrative Decisions Tribunal, Isenberg JM, 26 April 2013.)
[LTN 79, 29/4/13]