In Vidler v Commissioner of Taxation [2010] FCAFC 59 the taxpayer failed to remit GST on the sale of two vacant blocks of land on the basis that the land constituted residential premises and the sales were therefore input taxed supplies. The Commissioner issued notices of assessment for the payment of GST on the supplies. The taxpayer lodged notices of objection that were disallowed and on hearing at the Administrative Appeals Tribunal the Commissioner was successful. The taxpayer subsequently appealed to the Full Federal Court.
The definition of residential premises requires that land or a building be occupied as a residence or for residential accommodation, or alternatively that it is intended to be occupied and is capable of being occupied as a residence or for residential accommodation.
The taxpayer argued that this definition was broad and that the use of the alternative "land or buildings" meant that land that had facilities ordinarily associated with a residence such as connected utilities was capable of being occupied for residential accommodation. The Full Court rejected this idea and said that the word "occupied" meant living within a structure. The idea that someone could occupy vacant land for residential accommodation was dismissed.
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