Ryde Municipal Council v Macquarie University [1978] HCA 58

Ryde Municipal Council v Macquarie University [1978] HCA 58

By majority, the Court held that land leased by Macquarie University to commercial tenants, for the purpose of providing facilities to staff and students and as part of the university's planned functions, is 'used solely for the purposes' of the university under s 132(1)(fii) of the Local Government Act 1919 (NSW). Incidental receipt of rent does not defeat the exemption, as the usage furthered the university's statutory functions and was not collateral or independent. Thus, the land is exempt from rating.

Jurisdiction
Australia
Procedural Posture
Appeal / High Court of Australia Decision on Appeal From Supreme Court of New South Wales and Court of Appeal
Outcome
Appeal dismissed with costs.
Legal Topics
['rates and Taxes' 'land Use Exemptions' 'university Land' 'local Government Act 1919 (nsw)' 'charitable Purposes' 'statutory Construction']
['administrative Law' 'local Government Law' 'statutory Interpretation'] ['rates and Taxes' 'land Use Exemptions' 'university Land' 'local Government Act 1919 (nsw)' 'charitable Purposes' 'statutory Construction']

Case Brief

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Procedural Posture

Appeal / High Court of Australia Decision on Appeal From Supreme Court of New South Wales and Court of Appeal

Legal Issues

  1. 1 ["Whether land vested in Macquarie University and leased for commercial purposes is 'used or occupied by the University solely for the purposes thereof' within the meaning of s 132(1)(fii), Local Government Act 1919 (NSW) and thus exempt from rating." 'Whether letting premises to commercial tenants who serve mainly staff/students but derive profit disqualifies exemption under the Act.' "Proper construction of the terms 'used' and 'solely' in the statutory context."]

Ratio Decidendi

By majority, the Court held that land leased by Macquarie University to commercial tenants, for the purpose of providing facilities to staff and students and as part of the university's planned functions, is 'used solely for the purposes' of the university under s 132(1)(fii) of the Local Government Act 1919 (NSW). Incidental receipt of rent does not defeat the exemption, as the usage furthered the university's statutory functions and was not collateral or independent. Thus, the land is exempt from rating.

Court Disposition

Appeal dismissed with costs.

Orders

  • ['Appeal dismissed with costs.']