Bayside Council v Karimbla Properties (No 3) Pty Ltd

The Land and Environment Court of New South Wales considered the dispute between Bayside Council and Karimbla Properties (No 3) Pty Ltd concerning the categorisation of rateable land and the assessment of rates payable during a period of development. The central question was whether land undergoing construction for residential apartments could be classified as being used "for residential accommodation" under section 516(1)(a) of the *Local Government Act 1993* (NSW).

The court was required to determine the correct classification of the land for rating purposes during the development phase. Specifically, it had to decide whether the ongoing construction of residential apartments constituted a use of the land "for residential accommodation" as contemplated by the Act, or if a different classification was more appropriate during this period.

The court reasoned that the dominant use of the land at the relevant time was not yet "for residential accommodation" because the apartments were still under construction and not yet occupied or available for occupation. Applying the principles of statutory interpretation, the court found that the phrase "for residential accommodation" implied a completed or substantially completed state where the land was capable of being used for that purpose. Consequently, the land could not be categorised as such during the development period.

Each of the appeals was allowed, and the parties were directed to submit short minutes of orders to give effect to the court's conclusions.