Land tax claim in Toni Collette's Paddington property drama

Toni Collette and David Galafassi have been hit with a demand for $1 million plus arising from their failure to proceed with a Paddington property acquisition. That's on top of the $900,000 loss incurred when they sold their own Bronte house in March this year. 

The vendors - Susan and Nick Kelly who own the hip menswear brand Industrie - wanted the Hollywood couple to proceed with the $6.35 million purchase signed on September 30 last year.

The couple are now suing Collette and Galafassi for $1million plus, mostly for the $850,000 fall in value of the property when they resold for $5.5 million.

But their damages suit includes a claim for $43,516 in state land tax and interest for four months.

Collette and Galafassi are arguing the vendor's resold the property under value.

They claim the price ought have been $6.25 million at auction, according to documents filed in the Supreme Court and obtained by News Ltd.

The $6.35 million sale of the five-bedroom home was allegedly due to be settled by December 2011, but the couple pulled out of the deal when they couldn't find a buyer for their own Bronte home.

Collette's lawyer, David Carr told the Kellys' lawyer in an email on New Year's Eve last year his clients intended "not to proceed" with the purchase, according to the News Ltd report.

Collette  also sent an email to Nick Kelly on February 24, telling him the couple had decided to buy another house in Bronte. They had sold their own house in Bronte for a $900,000 loss.

Two months later the Kellys sued in an attempt to force them to complete the sale.

The Hollywood entertainment industry couple claim they do not have to pay the land tax which the Kelly's were hit with given their move into a Vaucluse residence.

They also claim they dont have to pay the interest on the $6.35 million as there was no agreement to "complete the sale" by December 30.

They claim emails sent to the Kellys cannot be used because they were sent "without prejudice".

Property Observer reported last week the next directions hearing into the matter has been scheduled for December 11 in the NSW Supreme Court equity division.