The organisation that manages Adelaide Oval will be repaid about $1 million in taxes it was incorrectly charged by the South Australian government.
However, the state government may still make the Stadium Management Authority (SMA) pay tax on the land value of the 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 SMA 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 SMA 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 SMA 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 SMA but only for the period from June 30, 2017, to June 30, 2021 — a decision only being publicly reported now.
Over that time, the change would amount to a saving for the SMA of about $1 million.
However, Ms 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 SMA 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.
SMA pleased with ruling
In a statement, a spokeswoman for Adelaide Oval said the SMA 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," she said.
"As the capital value is no longer relevant with regard to its ESL commitments, Adelaide Oval has withdrawn its challenge of the valuation process.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."
The Department of Treasury and Finance, which the Commissioner and Deputy Commissioner of State Taxation sit under, has not yet replied to a request for comment.
The Adelaide Oval underwent a $535 million state government-funded redevelopment between 2012 and 2014.
As well as hosting cricket and football matches, Adelaide Oval also has a restaurant and hires spaces at the venue for functions and conferences.
Half of the SMA'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 oval on behalf of the state government.
The land is leased from the Adelaide City Council.
The SMA does not pay council rates.
