Oliver Berkmann recently appeared for the Chief Commissioner before the NSW Civil and Administrative Tribunal in Zonadi Holdings Pty Ltd ATF Wombat Investment Trust v Chief Commissioner of State Revenue [2025] NSWCATAD 84.

The Taxpayer sought an exemption from land tax pursuant to the primary production land exemption (s 10AA of the Land Tax Management Act 1956) on the basis that the land was dominantly used to cultivate wine grapes for the purpose of selling wine grapes. The Chief Commissioner contended that the cultivation of the land was for the dual purpose of selling wine grapes as well as the secondary production process of growing wine grapes to make and sell wine.

The Tribunal held that the land was used for cultivation, however, on balance the purpose of growing wine grapes to make and sell wine, rather than the sale of wine grapes, was the land’s dominant use. On the facts of the particular case, the preponderance attached to the relative financial return from each of those activities where the financial return of the making and sale of wine was significantly greater than the growing and selling of wine grapes.

The decision can be found here.