In ACN 068 691 092 Pty Ltd v Commissioner Of State Taxation (No 2) [2018] SASC 26, application for costs was made following the dismissal of an appeal by a taxpayer against assessments issued by the Commissioner of State Taxation (Commissioner) for land tax on an aggregated basis. The Appellant (taxpayer) contended that the Commissioner took unnecessary steps in the action which increased its costs and should only be able to recover 40% of its costs.

Blue J held that there was no reason to make a partial costs order and ordered that the Appellant pay the Commissioner’s costs having regard to the issues determined at trial in favour of the Commissioner. A partial costs order is only to be made where the costs of the unnecessary steps comprised a very substantial proportion of the costs incurred in the action.