14 Jan 10 Long term marina berths did not attract concessionary GST rate - Meridien Marinas
The Federal Court (Greenwood J) has held that the supply of 20 year leases of berths at marina operated by the taxpayer (Meridien) did not attract the concessionary rate of GST under Div 87 of the GST Act, applicable to "commercial accommodation" in "commercial residential premises". His Honour said at paras 84-5:
"The difficulty in this case is that there is no evidence which establishes which or how many of the long-term lessees at the date of grant of each lease acquired a right to occupy a berth with a vessel for use at some time throughout the period of the lease, as a residence...Since Meridien has failed to establish that each of the long-term lessees acquired, at the date of entering into the lease, being the date of the taxable supply, a right to use the berth as a residence during the period of the lease, Meridien has failed to establish that it has supplied commercial accommodation in commercial residential premises for the purposes of the GST Act"
Meridien Marinas Horizon Shores Pty Limited v FCT  FCA 1594 (Federal Court, Greenwood J, 24 December 2009).
For a copy of the decision, go here