Ken Lord, instructed by the Crown Solicitors Office, successfully appeared for the Chief Commissioner of State Revenue in the recently decided Vatner v Chief Commissioner of State Revenue [2024] NSWSC 769.

The appeal concerned land tax assessments and the application of the principal place of residence exemption found in s 10(1)(r) and Sch 1A of the Land Tax Management Act 1956 (NSW) in the context of the demolition and reconstruction of 3 strata units into a new unit.

The case turned on the identification of ‘the land’ in cl 6(1) of Sch 1A of the Land Tax Management Act 1956 (NSW). Richmond J found that the principal place of residence exemption did not apply to the taxpayer as he did not intend to occupy and use all of the unoccupied land as his principal place of residence at each of the relevant taxing dates.

The land tax assessments were affirmed, and the plaintiff was ordered to pay the defendant’s cost on an ordinary basis. An appeal by the taxpayer to the Court of Appeal is underway.

A copy of the decision may be found here.