Australia, July 14 -- New South Wales Land and Environment Court issued text of the following judgement on June 13:

1. On 26 October 2023, the applicant, Camwall Pty Ltd as Trustee for (atf) the Antap Trust, entered an agreement to purchase land used for primary production (the Property) from Patricia Anne Wallace (Mrs Wallace). The Property is land that is used as part of the Wallace family business of primary production.

2. The sole director of the applicant is John Cameron Wallace (John Wallace). He is also the son of Mrs Wallace and the person who has at all relevant times been the person who carried on the Wallace family business.

3. The Antap Trust is a discretionary family trust. John Wallace is named as the Principal in the Trust Deed, a beneficiary of the Trust and, prior to its amendment on 24 January 2024, clause 3.4(c) of the Trust Deed made provision for the children of John Wallace being entitled, as takers in default of appointment to the Antap Trust Fund.

4. On 15 January 2024, the respondent, the Chief Commissioner of State Revenue, decided he was not satisfied that the applicant's purchase of the Property was exempt from duty under section 274 of the Duties Act 1997 (NSW) (Duties Act) and assessed the applicant as being liable for ad valorem duty, under Chapter 2 of that Act.

5. The applicant objected to the assessment and on 5 June 2024, the respondent determined to disallow the objection.

6. On 2 August 2024, the applicant lodged this application as it continues to contend that the purchase of the Property was an intergenerational transfer of land used for primary production between family members that satisfied the matters in section 274(2)-(4) of the Duties Act. It is the contention of the applicant that, on its proper construction, the matters in section 274(2)-(4) should be assessed as at the date on which the instrument of Transfer was executed and not on the date on which liability for duty arose.

7. It is the respondent's contention that the word 'transfer' in section 274 has the same meaning and application given to this word in Chapter 2 of the Duties Act and, the matters in section 274(2)-(4) must be satisfied as at the date on which liability for duty arose under that Chapter (i.e. the date on which the agreement for sale (Contract) was executed).

8. In this application, the respondent accepts that the exemption did apply as at the time liability for duty arose (26 October 2023) concerning the applicant's purchase of the Property.

*Rest of the document can be viewed at: (https://www.caselaw.nsw.gov.au/decision/1975d6b0261d1cc093a432b5)

Disclaimer: Curated by HT Syndication.