Working from home
David DAVIS (Southern Metropolitan) (12:23): My question is again to the Treasurer, and I note the Treasurer’s statement at the end of the last question in and of itself – I think those are very significant words. I, in this context, refer to the revenue ruling on the SRO website that states in item d):
When more than $30,000 (gross) income is derived from the business activity carried on on the PPR land … the Commissioner will generally consider that the PPR land is used to carry on a substantial business activity.
Will the Treasurer confirm, as pointed out in the ruling, that section 62(1) of the Land Tax Act may be deemed by the commissioner to apportion value of the PPR land between residential use and business purposes?
Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (12:24): Mr Davis, I am more than happy to continue a conversation with you about this, because I think that you are drawing an inference that business activity will pick up employees that are working from home, because that is kind of what the conversation has been in the last couple of days. I want to absolutely confirm that that is not the way the SRO currently apply the policy. We have not changed the policy. I would draw you to the fact that people have been working from home for a very long time, particularly in the last four years. Those people who spend time working from home are not currently in the remit of the rule.
David DAVIS (Southern Metropolitan) (12:25): My further question to the Treasurer is: barrister Emma Mealy, an expert in state taxes who worked at the SRO, has said:
It appears that it makes no difference to the commissioner as to whether a person works from home for their own business purposes or as part of their employment …
Will the Treasurer rule out land tax on the home offices of Victorians who work from home?
Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (12:25): Mr Davis, we have not made any changes to the policy. The SRO have not made any changes to the policy. In relation to what you are asking, I can confirm the advice from the SRO: someone who is generally working from home, such as in an employee situation, will not be caught by the ruling. They are not now, and there is no proposal to change that.