Repromed P/L v Lucas & the Comm for State Taxation No. Scgrg-99-763

Repromed Pty Ltd sought a refund of payroll tax on the basis that it was exempt under section 12 of the Pay-roll Tax Act 1991. The company argued that it was either a public benevolent institution or an employer who provides health services otherwise than for the purpose of profit or gain. The Commissioner disagreed and Repromed appealed to the Supreme Court of South Australia. The central issues in the appeal were whether Repromed qualified as a public benevolent institution and whether it was an employer who provides health services otherwise than for the purpose of profit or gain. The court held that Repromed did not qualify for an exemption under either provision. While Repromed did provide health services, it did so for the purpose of gaining revenue, either to increase its reserves or fund research. Additionally, although Repromed had not declared a dividend, its constitution allowed for the declaration of dividends, meaning that it was not precluded from individual profit or gain. Therefore, the appeal was dismissed.