Burns v Eurobodalla Shire Council [2006] NSWLEC 677

Burns v Eurobodalla Shire Council [2006] NSWLEC 677

Capital gains tax does not constitute 'special value' within the meaning of the Land Acquisition (Just Terms) Compensation Act 1991, as it is a personal liability unrelated to the use of the land; compensation is limited to the market value and agreed disturbance.

Jurisdiction
Australia
Judgment Date
02 November 2006
Procedural Posture
Compensation for Compulsory Acquisition / Judgment After Hearing
Outcome
Applicant's compensation determined at $324,000; claim for special value (capital gains tax) rejected; costs reserved.
Legal Topics
['compulsory Acquisition' 'special Value' 'capital Gains Tax' 'land Valuation']
['property Law' 'compensation Law'] ['compulsory Acquisition' 'special Value' 'capital Gains Tax' 'land Valuation']

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Procedural Posture

Compensation for Compulsory Acquisition / Judgment After Hearing

Legal Issues

  1. 1 ["What is the appropriate amount of compensation for the compulsory acquisition of the applicant's land?" "Does potential liability to capital gains tax qualify as 'special value' under the Land Acquisition (Just Terms) Compensation Act 1991?"]

Ratio Decidendi

Capital gains tax does not constitute 'special value' within the meaning of the Land Acquisition (Just Terms) Compensation Act 1991, as it is a personal liability unrelated to the use of the land; compensation is limited to the market value and agreed disturbance.

Court Disposition

Applicant's compensation determined at $324,000; claim for special value (capital gains tax) rejected; costs reserved.

Orders

  • ['The compensation for the compulsory acquisition of Nos. 88 and 90 Murray Street, Moruya, is determined at $324,000.' 'The question of costs is reserved.' 'The exhibits may be returned.']