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HIGH COURT OF AUSTRALIA FULL COURT

COMMISSIONER OF LAND TAX (NSW) v SHERWOOD SERVICES PTY LTD, INGEBYRA PTY LTD

BARWICK   CJ Gibbs, Stephen, Mason and JACOBS   JJ

25 August 1975 -

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Gibbs   J    I agree. This appeal turns on the proper construction of the words of s 10(1)(c) of the Land Tax Management Act (NSW) (as amended).

   The first limb of that provision causes no apparent difficulty of construction because incorporated hospitals and separate institutions within the meaning of the Public Hospitals Act 1929 (NSW) (as amended) are institutions or organizations by or in trust for which land may be owned. However, private hospitals and rest homes under the Private Hospitals Act 1908 (NSW) (as amended) are defined by that Act to mean buildings and it is obvious that land cannot be owned by or in trust for a building. It is therefore apparent that some modification must be placed upon the ordinary meaning of the words of the second limb of s 10(1)(c) .

   The appellant, the Commissioner of Land Tax, submits that the effect of the second limb of the clause is to confer an exemption from land tax on a person whose sole or principal activity is the conduct of a rest home. Up to a point I would agree that this argument is correct. However, in my opinion the only activities and purposes with which s 10(1)(c) is concerned are those that relate to the land in question. A person who uses land solely or principally for the purposes of the conduct of a rest home is entitled to an exemption from tax in respect of that land, although not of course in respect of other land, and does not lose the benefit of the exemption because he carries on other activities elsewhere.

   I agree that the appeal should be dismissed.