No land tax for living in a garage...this time

Exemption from land tax

 Deciding on a principal place of residence

"In a recent case, a parcel of land was found to be exempt from land tax where the land owner was living in a garage he had built on the land. The law exempts land that is a “principal place of residence” from land tax.

The person had bought land three doors away from his mother and decided to build a new residence on it. First though, he built a garage which he claimed to live in as his principal place of residence. 

The Commissioner of State Revenue argued that it was not, primarily because he felt the land owner did not really live in the garage which had been built on it. The Commissioner argued that the architectural design and physical character of a garage was inappropriate for residential purposes and that a mere sleeping place was not “residential” in the relevant sense.

The Tax Office has standard procedures in seeking to show a parcel of land is not a person’s principal place of residence, invariably looking at tax returns, electricity bills, driver’s licence and the like, in order to match up the addresses on those returns, bills and licence with the address of the claimed principal place of residence.

In the case, the tribunal decided that the land was not used for anything other than the development of the new house and as the person’s residence"

“The article is published with permission of Law Society of New South Wales. Copyright (c) Law Society Of New South Wales – Client Newsletter, 3, 2013.”

Contact Andre Petrov at Systema Lex if you require assistance with estate planning, construction or conveyancing issue. Systema Lex is a Sydney-based general legal practice. Please check our website at http://www.systemalex.com.au for details.

Change in job duties and responsibilities a breach of employment contract ?

"Employers should be aware that varying an employee’s duties and responsibilities may have the effect of repudiating the employment contract, particularly if it materially impacts on the employee’s status within the organisation or industry.

In a recent decision, a judge found that a company’s executive chairman, who had hired an executive, in effect, in the same position as an existing executive, had repudiated the latter’s employment contract.

Apart from identifying the title of his position, the latter’s employment contract provided no specific detail about his role within the firm. The judge noted that repudiation may refer to conduct which “evinces an unwillingness or an inability to render substantial performance of the contract”.

The well-recognised test for repudiation is whether, objectively, the conduct of one party is such as to convey to a reasonable person, in the situation of the other party, renunciation either of the contract as a whole or of a fundamental obligation under it.

There are circumstances where a considerable change in the nature of an employee’s duties may not amount to a repudiation. The circumstances of a particular case may permit a degree of flexibility in approach."

“The article is published with permission of Law Society of New South Wales. Copyright (c) Law Society Of New South Wales – Client Newsletter, 3, 2013.”

Contact Andre Petrov at Systema Lex if you require assistance with a job-related issue.  Systema Lex is a Sydney-based legal practice. Please see our website at http://www.systemalex.com.au for details.