State Tax

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Water Pipeline Subject To Duty As “Goods” For The Purpose Of The New South Wales Landholder Duty Provisions in Conexa Syndey Holdings

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Water Pipeline Subject To Duty As “Goods” For The Purpose Of The New South Wales Landholder Duty Provisions in Conexa Syndey Holdings

On 24 May 2024 the New South Wales Supreme Court held that landholder duty applied to value of a water carrying pipeline in Conexa Sydney Holdings Pty Ltd v Chief Commissioner of State Revenue (2024] NSWSC 628.

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New South Wales State Budget 2024-25 – Increase to foreign surcharges and payroll tax relief for GP contractors

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New South Wales State Budget 2024-25 – Increase to foreign surcharges and payroll tax relief for GP contractors

The New South Wales State Budget 2024-25 is a mixed bag, containing an increase to foreign surcharges, but also payroll tax relief for GP contractors. The tax-free threshold for land tax will also remain the same, so more landowners will be subject to land tax as property values rise.

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Sladen Snippet – Merristock – primary production exemption applies as trust can beneficially own shares

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Sladen Snippet – Merristock – primary production exemption applies as trust can beneficially own shares

In a case run by Sladen Legal, Merristock Pty Ltd v Commissioner of State Revenue (Review and Regulation) [2024] VCAT 535, the taxpayer has successfully appealed against a Victorian State Revenue Office (SRO) determination that land owned by the taxpayer was not eligible for the primary production land tax exemption.

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Godolphin case: High Court decision considers the “dominant use” test under the NSW land tax primary production exemption

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Godolphin case: High Court decision considers the “dominant use” test under the NSW land tax primary production exemption

The High Court has dismissed an appeal by Godolphin Australia Pty Ltd (Godolphin) and confirmed that it cannot claim the primary production land tax exemption, as it was unable to show that the “dominant use” of its properties was for primary production where it also had substantial horseracing activities.  The decision illustrates the issues that can arise when primary production land is used as part of business models that include other interrelated activities.

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GP Tax – Payroll tax changes flagged in Victoria

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GP Tax – Payroll tax changes flagged in Victoria

In a major backdown, the Victorian State Government has agreed to reduce some of the impact of the recent policy shifts towards taxing general practitioners as employees for payroll tax purposes.

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Significant changes to Victorian land tax assessments to result in higher land tax bills

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Significant changes to Victorian land tax assessments to result in higher land tax bills

Land tax assessments are now being issued in Victoria, with landowners finding their land tax bills to be substantially higher than expected, due to significant changes from 1 January 2024.  Hundreds of thousands of taxpayers will also be receiving land tax assessments for the first time altogether.

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Khalil - Discretionary trust triggers foreign land tax surcharge due to incorrectly drafted exclusionary clause

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Khalil - Discretionary trust triggers foreign land tax surcharge due to incorrectly drafted exclusionary clause

This is a cautionary tale for ensuring that discretionary trust deeds are amended correctly so that “foreign” land transfer (stamp) duty and land tax surcharges are not triggered. Unfortunately, in the decision of Khalil & Associates Pty Ltd ATF The George Khalil Family Trust v Chief Commissioner of State Revenue [2024] NSWCATAD 23 (Khalil), the NSW Civil and Administrative Tribunal (Tribunal) found the particular amendment did not prevent the triggering of such a surcharge.

Are Foreign Surcharge Stamp Duty and Land Taxes Illegal?

Are Foreign Surcharge Stamp Duty and Land Taxes Illegal?

The Federal Government’s Mid-Year Economic and Financial Outlook 2023-24 (MYEFO) (released on 13 December 2023) has again raised the legality of the ability of the States to impose foreign purchaser land transfer (stamp) duty surcharge and foreign owner land tax (together, the foreign surcharges).

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Payroll tax crackdown on medical and allied health practices continues – revenue authorities release rulings

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Payroll tax crackdown on medical and allied health practices continues – revenue authorities release rulings

Employers and business entities must pay payroll tax in relation to wages paid to its employees. In addition, such entities must pay payroll tax in relation to contractors engaged under “relevant contracts”.

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Vicinity Funds – Choice of forum for state taxes matters - Supreme Court vs VCAT

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Vicinity Funds – Choice of forum for state taxes matters - Supreme Court vs VCAT

The High Court of Australia has dismissed the special leave application by the taxpayer, Vicinity Funds Re Ltd (Taxpayer) to appeal from a decision of the Court of Appeal of the Supreme Court of Victoria (Court of Appeal).   

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Horse breeding found to qualify for the primary production land tax exemption

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Horse breeding found to qualify for the primary production land tax exemption

The NSW Supreme Court’s (NSWSC) decision in Godolphin Australia Pty Ltd v Chief Commissioner of State Revenue [2022] NSWSC 430 (Godolphin Case) is instructive as it provides guidance into the ambit and scope of the land tax primary production exemption particularly in relation to the breeding of horses.

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Sladen Snippet – Mental Health and Wellbeing surcharge on businesses with more than $10 million wages

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Sladen Snippet – Mental Health and Wellbeing surcharge on businesses with more than $10 million wages

The Mental Health and Wellbeing surcharge will commence from 1 January 2022 and is payable on Victorian taxable wages paid or payable from 1 January 2022 by an employer or a group of employers.

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A Guide To Understanding Land Tax: Part 4 Aggregation, Grouping and “Degrouping”

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A Guide To Understanding Land Tax: Part 4 Aggregation, Grouping and “Degrouping”

As discussed in Part 1 and Part 2 of this series, land tax is levied on the total taxable value of land held by a taxpayer in a particular jurisdiction. Land tax is then levied on a progressive graduated scale. That is, the higher the value of land that you own the higher the rate of land tax you pay.

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COVID and State Taxes: What Victorians need to know in 2021

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COVID and State Taxes: What Victorians need to know in 2021

The coronvirus pandemic continues to have an impact on the health of Victorians and the econmy of the State. In recognition the Victorian Government continues to provide a number of state tax and duty relief measures to assist Victorians with the economic impact of the pandemic.

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Sladen snippet – Land tax surcharge triggered due to defective saving clause in the trust deed

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Sladen snippet – Land tax surcharge triggered due to defective saving clause in the trust deed

Many state and federal taxing provisions provide different tax outcomes on the trustees of trusts depending on what type of trust is involved. One example of this is contained in the NSW land tax rules which provides for a land tax surcharge on unit trusts that are “special trusts” rather than “fixed trusts”.