Primary production land tax exemption win for the property developer

IN BRIEF - "DOMINANT USE" ASSESSMENT REQUIRES INQUIRY INTO CURRENT TANGIBLE AND PHYSICAL DEPLOYMENT AND ITS PURPOSE

The New South Wales Court of Appeal in Chief Commissioner of State Revenue v Metricon Qld Pty Ltd [2017] NSWCA 11 has held that a property developer is entitled to the "primary production" land tax exemption even though the land was acquired with a view to future residential development and subdivision.

The approach adopted by the Court evidences that in determining whether the "primary production" exemption applies, it is necessary to consider the current tangible and physical deployment of the land and not the purpose of acquisition.

METRICON BUYS LAND FOR FUTURE SUBDIVISION AND SALE, IN THE INTERIM USED FOR CATTLE GRAZING AND RESIDENTIAL LEASE IN PARTS