Chief Commissioner of State Revenue v Metricon Qld Pty Ltd

The Chief Commissioner of State Revenue appealed to the Court of Appeal of New South Wales against a decision concerning the application of the primary production exemption from land tax under section 10AA(3) of the *Land Tax Management Act 1956* (NSW). The dispute centred on whether land owned by Metricon Qld Pty Ltd, acquired with the intention of residential development and subdivision, but also used for cattle raising and containing tenanted houses, qualified for the exemption.

The Court of Appeal was required to determine the dominant use of the land for the purposes of the exemption. Specifically, it had to consider whether the land's use was "for" primary production activities, and whether the concept of "use" extended beyond physical occupation to include "intangible use" such as "land banking" or preparation for residential development. The court also had to ascertain whether the residential use of tenanted houses or the cattle raising activities constituted the dominant use of certain areas of the land.

The Court of Appeal reasoned that the exemption under section 10AA(3) requires the land to be used "for" primary production. It held that the concept of "use" in this context is not confined to physical use but can encompass an "intangible use" such as holding land for future development. However, the court found that the primary production activities, namely cattle raising, were not merely incidental to the development purpose but were a genuine use of the land. The court concluded that the dominant use of the land, considering all activities, was for primary production, thereby qualifying for the exemption.

Consequently, the appeal was dismissed, and the Chief Commissioner of State Revenue was ordered to pay the respondent's costs of the appeal.