A public ruling, when issued, is the published view of the Commissioner of State Revenue (the Commissioner) on the particular topic to which it relates. It therefore replaces and overrides any existing private rulings, memoranda, manuals and advice provided by the Commissioner in respect of the issue(s) it addresses.
Where a change in legislation or case law (the law) affects the content of a public ruling, the change in the law overrides the public ruling—that is, the Commissioner will determine the tax liability or eligibility for a concession, grant or exemption, as the case may be, in accordance with the law.
A purchases property consisting of a general store and a home. The general store is worth $100,000 and the home is worth $200,000.
A will only be entitled to the concession on $200,000.
B purchases land and premises with an area of 15,000m2. 6,000m2 of the property contains the residence and a fenced yard. The other 9,000m2 contains an area for small crop farming and sheds for business use. The property is valued at $250,000. The house and the 6,000m2 of land is valued at $180,000 and the other 9,000m2 containing the area for small crop farming and sheds for business use is valued at $70,000.
B will only be entitled to the concession on $180,000.
C purchases a property with an area of 10,000m2. The house, gardens, garden sheds, swimming pool and tennis court occupies 2, 500m2. The other 7,500m2 is vacant land used by the family for keeping their horses.
The property is valued at $350,000. The house and the 2,500m2 of land is valued at $200,000 and the other 7,500m2 of vacant land is valued at $150,000.
As the curtilage is used as part of the ordinary enjoyment of the land for residential purposes, C will be entitled to the concession on $350,000.
D acquires a three-bedroom home. D runs a business from the home and will utilise one of the rooms for this purpose. D acquired the property for $300,000. A valuer has valued the room at $40,000.
D will only be entitled to the concession on $260,000.
This can be contrasted with the circumstance where the transferee will maintain an office or study as a matter of convenience (i.e. so that he or she can carry out work at home which would otherwise be done at his or her regular place of business or employment). In this case the home office will attract the concession.
E purchases a four-bedroom home. As E works from home three days per week, one of the bedrooms will be used as a home office; however, no business is being conducted on the property. E acquired the property for $320,000.
E will be entitled to the concession on $320,000.
Commissioner of State Revenue
Date of issue: 3 July 2012
|Public Ruling||Issued||Dates of effect|
|DA087.1.4||3 July 2012||1 July 2012||Current|
|DA087.1.3||12 August 2011||1 August 2011||30 June 2011|
|DA087.1.2||16 April 2010||16 April 2010||31 July 2011|
|DA087.1.1||24 February 2009||24 February 2009||15 April 2010|
|Supersedes Revenue Ruling DA 1.3||22 January 2009||22 January 2009||23 February 2009|