Two taxpayers (a couple) have been successful before the Victorian Civil and Administrative Tribunal in seeking the primary production land tax exemption in respect of a property for the 2011 to 2013 land tax years.

The issue was whether the land was exempt pursuant to s 67 of the Land Tax Act 2005 (Vic). That is, whether the land was used “solely or primarily for the business of primary production”. It was conceded that the land was in “Greater Melbourne” and in an Urban Zone. The land consisted of some 40 acres and there was a house on the property, which was tenanted during the relevant period. The house occupied some 400-500 square metres. The first taxpayer claimed he worked “long hours” each day to collect feed and hand-feed the cattle on the farm – some 35 to 120 cows depending on which year. The taxpayers made no profit from the farming activities, and the activities were subsidised by money given by the taxpayer’s children.

The Tribunal concluded the taxpayers had complied with the relevant sections of the Land Tax Act in that the first taxpayer used the land solely or primarily for the business of primary production and that he was engaged substantially fulltime and in the capacity of the business of primary production. Accordingly, the Commissioner’s assessment was set aside.

(Marrone & Anor v Comr of State Revenue (Review & Regulation List) [2014] VCAT 1137, Victorian Civil and Administrative Tribunal, Davis SM, 10 September 2014.)

[LTN 186, 25/9/14]