The WA State Administrative Tribunal has partially allowed a couple’s (the taxpayers’) claim for the rural business land tax exemption under s 29 of the Land Tax Assessment Act 2002 (WA).
The taxpayers are the joint owners of the subject land. One of the owners was at the relevant time using about 10% of that land as a market garden. The remainder of the land was being used, also as a market garden, by a trust of which the general beneficiaries include the taxpayers’ children. The taxpayers considered that for the assessment years to 30 June 2012 and to 30 June 2013, the land should be exempt from land tax because on the relevant dates it was used by one of the taxpayers for a rural business.
The Commissioner’s refused the exemption as he considered the exemption only applied where the land in question was being used by the owners solely or principally for a rural business. The Commissioner decided that only 10% of the land was being used by the owners for a rural business and even though they qualified for the exemption in other respects, this use was not sufficient for the exemption to apply.
The Tribunal concluded that the land was not fully exempt in respect of the years in question. However, the Tribunal considered that the land should be partly exempt from land tax for those years to the extent of 10%. The Tribunal ordered a reassessment of land tax.
(Galati-Rando & Anor and Comr of State Revenue [2014] WASAT 164, WA State Administrative Tribunal, Sharp DP, 5 December 2014.)
[LTN 10/12/14]