Revenue NSW issues ruling on GST withholding 

From 1 July 2018, purchasers of new residential premises or residential land may need to withhold an amount that would otherwise be payable to the vendor on account of the Goods and Services Tax (GST). In view of this new law, Revenue NSW has issued Revenue Ruling No. DUT 047 which clarifies that duty is still payable on the GST component of the purchase price, even if GST withholding applies and the purchaser pays the withheld amount directly to the Australian Taxation Office (or to the vendor via bank cheque made out to the Commissioner of Taxation) instead of paying that amount to the vendor.  

Tribunal NSW land tax exemption did not apply

The NSW Civil and Administrative Tribunal in Carberry v Chief Commissioner of State Revenue [2018] NSWCATAD 157 has found that the taxpayer was not entitled to the principal place of residence exemption from land tax in relation to a property. The Tribunal held that the taxpayer did not meet the requirements of clause 6 of Schedule 1A to the Land Tax Management Act 1956 (NSW) which provides a concession for unoccupied land intended to be the owner’s principal place of residence.  

Tribunal finds no entitlement to Victorian charitable duty exemption 

The Victorian Civil and Administrative Tribunal in Rotary Club of Melbourne Inc v Commissioner of State Revenue [2018] VCAT 1257 has held that the association was not a body established for charitable purposes and as such was not exempt from duty under section 45 of the Duties Act 2000 (VIC) at the time of the transfer of relevant property. While acknowledging the social and networking activities undertaken by the association, the Tribunal was of view that this went ‘beyond the purposes accepted by the law as charitable’.