Adelaide Oval to get $1 million refund in state taxes

The Adelaide Oval Stadium Management Authority (AOSMA) is to be repaid about $1 million in taxes it was incorrectly charged by the South Australian Government.

However, the state government may still make AOSMA pay tax on the land value of the Adelaide Oval in the future if it decides a hotel that opened at the site in 2020 has turned it into more of a commercial development than a sporting one.

The tax issues stem from a challenge by the AOSMA in the South Australian Civil and Administrative Tribunal (SACAT) against a $350 million valuation of the venue from 2019.

That valuation would have led to the AOSMA being issued with a $452,000 Emergency Services Levy (ESL) bill in 2020.

The ESL is charged on all land, at varying rates, across South Australia to fund emergency services apart from police.

The AOSMA first appealed the valuation to SACAT in March 2021.

Last December, its lawyer wrote to the Commissioner of State Taxation saying Adelaide Oval should be handed a discounted ESL bill as land used for sport or recreation and leased from a council.

The change from its previous classification of commercial land use would have cut its bill to $145,475.

In February, the Deputy Commissioner of State Taxation, Lisa Smith, agreed with the AOSMA but only for the period from 30th June 2017 to 30th June 2021 - a decision only being publicly reported now.

Over that time, the change would amount to a saving for the AOSMA of about $1 million.

However, Smith said the opening of the Oval Hotel in September 2020 could change the balance of the venue being mainly focused on its sporting or commercial activities.

The AOSMA will find out her decision when it gets its next ESL bill after July.

It has since dropped its opposition to the valuation being done but may still dispute the valuation itself.

In a statement, an Adelaide Oval spokesperson said the Authority was "pleased that an administrative correction has been made following the determination that, as a sporting venue, the stadium is exempt from ESL commitments.

"This ruling reflects the same exemption applied to many other sporting venues in South Australia.

"As the capital value is no longer relevant with regard to its ESL commitments, Adelaide Oval has withdrawn its challenge of the valuation process.

"Oval Hotel will continue to fulfil its ESL commitments as required."

AOSMA's directors are appointed by the South Australian Cricket Association, while the other half are chosen by the South Australian National Football League.

It manages the venue on behalf of the South Australian Government.

The land is leased from the Adelaide City Council.