NSW demands Costello pay $400m tax bill

New South Wales through The Chief Commissioner of Taxation has issued the Commonwealth with a pre-court final demand for a $400 million tax bill that the Federal Government is refusing to pay. The bill is the result of the Federal Government's sale of Sydney Airport to Macquarie Bank, under which the Government issued an indemnity on land tax to the purchaser. A total $160 million of the disputed $400 million tax bill is penalty interest charged for non-payment.