Darley Off to High Court for Land Tax Exemption

Media Release - Monday November 13

Since April 2022 I have been constantly updating the industry on the status of Godolphin’s land tax exemption dispute with Revenue NSW.

A Darley loss on assessment, a win at the NSW Supreme Court, a loss at the Court of Appeal – a drama that we hope would end with victory at the highest court in the land, the High Court.

It was never a fait accompli that Darley would ever get their day in the High Court, special leave had to be applied for. Under this process the parties apply to have their cases heard by the court. During this process the court decides whether or not the appeal a party is attempting to raise merits the attention of the High Court.

In great news, on 16 October the High Court announced it will hear an appeal on land tax exemption for rural land in NSW used for a business that combined the breeding and racing of thoroughbred horses.

The taxpayer in Chief Commissioner of State Revenue (NSW) v Godolphin Australia Pty Ltd  secured special leave to appeal to the High Court against the decision of the NSW Court of Appeal denying the exemption. The Court of Appeal had held that the land was not entitled to the exemption for land used for primary production within the Land Tax Management Act 1956 (NSW). That section exempted primary production land from land tax if the dominant use of the land was for the maintenance of animals for the purpose of selling them or their natural increase or bodily produce.

At the latest court hearing, the Court of Appeal had held that rural land used for a business that combined the breeding and racing of thoroughbred horses was not entitled to the exemption for land used for primary production. In other words, they successfully argued that the dominant use of the land was not for the maintenance of animals for the purpose of selling them or their natural increase or bodily produce.

The appeal court argued that the text and structure of the exemption rules as a whole, and the relevant authorities, indicated that the concepts of “use” and “purpose” are connected and should not be considered separately. In their words “use of land cannot be mixed into a conglomerate “animal maintenance” to which a purpose of sale then adheres.”

My sources advise the High Court appeal will be held around April 2024. Fingers crossed my next update has a final chapter that brings a victory to Darley, a victory that will have widespread and positive implications to many similar operations in the breeding and racing industry.

Please do not hesitate to contact the writer if you wish for me to clarify or expand on any of the matters raised in this article.

Advertisement

PAUL CARRAZZO CA

CARRAZZO CONSULTING PTY LTD

801 Glenferrie Road, Hawthorn, VIC, 3122

TEL:   (03) 9982 1000

FAX:   (03) 9329 8355

MOB:  0417 549 347

E-mail: paul.carrazzo@carrazzo.com.au

Web: www.carrazzo.com.au

Advertisment
More Reading...
Sword Poised to Strike
When the first crop yearlings by a young stallion are well received and go into the right stables that’s always a good sign and then a few months after that is when things start to get really interesting.
Sixth Winner for Anders
First past the post at Wyong on June 24, talented Anders filly Sapling lost that race on protest, but quickly made amends when returning to the same track on Saturday to score her first actual victory.
Spring Goals Await Caloundra Cup Winner Half Yours
With spring staying features on their minds, Tony and Calvin McEvoy sent their improving stayer north to Queensland for Saturday’s $300,000 Listed Caloundra Cup (2400m) with instant success as the 4yo gelding Half Yours romped home by four and a half lengths.
Sires With Winners - Saturday July 5
Here is the full list of 112 stallions which had winners throughout Australasia today with winners and result details.
Group 1 Durban July Success For Son Of Australian Bred Gimmethegreenlight
Although not having previously sired a winner of South Africa’s greatest race, the Australian bred, South African-based sire Gimmethegreenlight (More Than Ready) added a 13th individual Group 1 winner to his record when the Dean Kannemeyer trained The Real Prince (SAF) added Saturday’s R5m Group 1 Hollywoodbets Durban July (2200m) to his record.
Lisa Kennedy Recognized for Thoroughbred Welfare
Lisa Kennedy has always had a passion for thoroughbreds, and her efforts in guiding retired racehorses into new careers through EventStars were celebrated at Entain’s Industry Excellence Awards last Sunday as the winner of the Care and Welfare Excellence Award.
2026 Golden Slipper Entries – Sortable, Sale Mail – Find Out More
The new season is nearly upon us and that means all over the country a new crop of rising two year-olds are taking baby steps in the best stables in the land with the Australian Turf Club announcing this week they had received 1927 entries for the 2026 Golden Slipper, so who is in the race?
Sweet Redemption for Stable Favourite Jimmy the Bear
Patrick and Michelle Payne enjoyed a red letter day at Flemington on Saturday with their rising star Buccleuch winning the Listed VRC Taj Rossi Series Final and then later in the day stable favourite Jimmy the Bear won the Listed VRC Winter Championship Series Final (1600m).
New Sprint Star for WA?
Oakland Park's veteran WA sire Sessions is rarely without a good horse to represent him, and the son of Lonhro now has his sixth stakes winner after exciting 3YO galloper Repossession spanked the older horses to win the Listed Beaufine Stakes at Pinjarra Park.
Sires With Winners - Thursday July 3
Here is the full list of 27 stallions which had winners throughout Australasia today with winners and result details.