Redmadi Pty Ltd v Chief Commissioner of State Revenue [2017] NSWCATAD 231

Civil and Administrative Tribunal New South Wales Medium Neutral Citation: Redmadi Pty Ltd v Chief Commissioner of State Revenue [2017] NSWCATAD 231 Hearing dates: 15-16 December 2016, 19-20 June 2017 Date of orders: 21 July 2017 Decision date: 21 July 2017 Jurisdiction: Administrative and Equal Opportunity Division Before: B Tamberlin QC, Principal Member Decision: Land Tax Assessments for the 2011-2015 land tax years are confirmed Catchwords: STATE TAXES- land tax- land used for alpaca herd goats and chickens and for farm stay accommodation- whether any primary production use -whether farm stay use was dominant COSTS-whether special circumstances -whether prima facie rule should apply Legislation Cited: Land Tax Management Act 1956 Civil and Administrative Tribunal Act 2013 Cases Cited: Chief Commissioner of State Revenue v Metricon Q'land Pty Ltd [2017] NSWCA 11 Leda Manorstead Pty Ltd v Chief Commissioner of State Revenue[2010 NSWSC 86 Thomason v Chief Executive Department of Lands (1994-1995)15 QLCR 286 Category: Principal judgment Parties: Redmadi Pty Ltd (Applicant) Chief Commissioner for State Revenue (Respondent) Representation: Counsel: Ms Sethi (Applicant) Mr Mitchell (Respondent)

Solicitors: Crown Solicitor's Office (Respondent) File Number(s): 1610370

reasons for decision

Introduction 1. This is an application for review of a decision of the respondent refusing to grant an exemption to the applicant in respect of land tax on land at 1880 Bells Line of Road Kurrajong Heights NSW (the land) because the respondent was not satisfied that the land was used during the land tax years, 2011–2015 inclusive (the relevant years) for the dominant purpose of primary production within the meaning of s 10 AA of the Land Tax Management Act 1956 (the Act). That section provides as follows: 10AA Exemption for land used for primary production (1) Land that is rural land is exempt from taxation if it is land used for primary production. (2) Land that is not rural land is exempt from taxation if it is land used for primary production and that use of the land: (a) has a significant and substantial commercial purpose or character, and (b) is engaged in for the purpose of profit on a continuous or repetitive basis (whether or not a profit is actually made). (3) For the purposes of this section, "land used for primary production" means land the dominant use of which is for: (a) cultivation, for the purpose of selling the produce of the cultivation, or (b) the maintenance of animals (including birds), whether wild or domesticated, for the purpose of selling them or their natural increase or bodily produce, or (c) commercial fishing (including preparation for that fishing and the storage or preparation of fish or fishing gear) or the commercial farming of fish, molluscs, crustaceans or other aquatic animals, or (d) the keeping of bees, for the purpose of selling their honey, or (e) a commercial plant nursery, but not a nursery at which the principal cultivation is the maintenance of plants pending their sale to the general public, or (f) the propagation for sale of mushrooms, orchids or flowers. (4) For the purposes of this section, land is "rural land" if: (a) the land is zoned rural, rural residential, non-urban or large lot residential under a planning instrument, or (b) the land has another zoning under a planning instrument, and the zone is a type of rural zone under the standard instrument prescribed under section 33A (1) of the Environmental Planning and Assessment Act 1979 , or (c) the land is not within a zone under a planning instrument but the Chief Commissioner is satisfied the land is rural land."