FERELLA v Chief Commissioner of State Revenue

In *Ferella v Chief Commissioner of State Revenue*, the Supreme Court of New South Wales was asked to determine whether the Chief Commissioner of State Revenue (the Commissioner) had correctly assessed stamp duty on a transfer of property. The taxpayer, Mr Ferella, had purchased a property and sought to have the transfer duty assessed on the basis of a concessional rate, arguing that the property was his principal place of residence. The Commissioner had refused this concession, assessing duty at the general rate.

The central legal issue before the Court was whether Mr Ferella qualified for the principal place of residence concession under the *Duties Act 1997* (NSW). This required the Court to consider the meaning of "principal place of residence" and whether Mr Ferella's use of the property met the statutory requirements for claiming the concession at the time of the transfer. Specifically, the Court had to determine if Mr Ferella had genuinely taken up residence in the property, or if his occupation was merely temporary or for a limited purpose.

Judge Driver reasoned that the statutory definition of "principal place of residence" required more than mere physical presence; it necessitated an intention to reside permanently or indefinitely. The evidence presented indicated that Mr Ferella had not yet moved his belongings into the property, had not changed his postal address, and continued to reside at his previous address. His Honour found that Mr Ferella's actions demonstrated an intention to occupy the property in the future, rather than an established residence at the time of the transfer. Consequently, the Court held that Mr Ferella had not satisfied the criteria for the principal place of residence concession.

The Court therefore dismissed Mr Ferella's appeal and affirmed the Commissioner's assessment of stamp duty at the general rate.