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 developer in a remote rural area subdivides a parcel into ten lots. Annual land sales in the area are historically very slow and the developer sells only two lots per annum. However, the properties are listed with local agents on commercial terms. The Commissioner would consider that the land is held for sale for the purposes of s.30(1)(d) of the Land Tax Act.
A land owner subdivides a property into three lots and places a small sale advertisement for the lots in the local newspaper on two occasions. The lots are not listed with local agents nor are ‘for sale’ signs erected on the lots. The advertised sale prices greatly exceed the market values and comparable sales in the area. Despite the fact that no offers are received, the owner takes no additional or different steps to try to sell the lots and they remain unsold for two years. The Commissioner would not consider that the land is held for sale for the purposes of s.30(1)(d) of the Land Tax Act.
A developer subdivides a parcel into 25 lots. The developer puts 20 of the lots on the market by listing them with real estate agents on commercial terms. These lots will be regarded as held for sale.
However, the developer thinks that the remaining five lots will significantly increase in value in the years ahead and decides to hold on to these lots for the time being. These five lots will not be held for sale.
Commissioner of State Revenue
Date of issue: 12 December 2016
|Public Ruling||Issued||Dates of effect|
|LTA030.1.3||12 December 2016||12 December 2016||Current|
|LTA030.1.2||1 July 2011||1 July 2011||11 December 2016|
|LTA030.1.1||30 June 2010||30 June 2010||30 June 2011|