Land Tax – Western Australia – Foreign Entities
At this time there is no implemented surcharge after the proposal was defeated in parliament.
Generally the land tax position in Western Australia is:
|Aggregated Taxable Value of Land||Rate of Land Tax|
|$300,001||$420,000||Flat rate of $300|
|$420,000||$1,000,000||$300 + 0.25 cent for each $1 in excess of $420,000|
|$1,000,000||$1,800,000||$1,750 + 0.90 cent for each $1 in excess of $1,000,000|
|$1,800,000||$5,000,000||$8,950 + 1.80 cents for each $1 in excess of $1,800,000|
|$5,000,000||$11,000,000||$66,550 + 2.00 cents for each $1 in excess of $5,000,000|
|$11,000,000||$186,550 + 2.67 cents for each $1 in excess of $11,000,000|
Land tax is an annual tax on land. It is assessed on the total unimproved value of all land held by the owner (or owners) at midnight on 30 June.
There are a number of exemptions available including the following:
Primary residence exemption
an exemption is available if private residential property (except property held in trust) is owned by an individual who uses it as their primary residence.
A full exemption is also available if the property is owned by a husband and wife or de facto partners, at least one of whom used the property as their primary residence.
A proportionate exemption may be available if not all owners reside in the property or where land is used as the owner’s primary residence as well as for some other purpose.
The primary residence exemption does not apply to land owned by a trust or company.
Right to reside granted to beneficiary under a Will
an exemption is available if private residential property is owned by an Executor or Administrator of a Will as trustee and a beneficiary under the Will used the property as their primary residence in accordance with certain rights granted under the Will.
Exemption following former owner’s death
an exemption is available if private residential property is owned by an Executor or Administrator of a deceased estate for the financial year after the deceased’s death if certain conditions are satisfied.
Primary residence of certain disabled persons
an exemption is available for private residential property owned by an individual if it is used by a disabled relative as their primary residence. Alternatively, the property may be held by a trustee where at least one beneficiary of the trust uses the property as their primary residence.
Primary residence under construction/refurbishment
an exemption is available for private residential property (except property held in trust) that is undergoing construction or refurbishment for either one or two consecutive years if certain conditions are satisfied.
Moving between primary residences
an exemption is available when moving between two private residential properties if certain conditions are satisfied. An exemption for 2 consecutive years is available where the second residence is constructed or refurbished and certain conditions are satisfied. As qualified and professional tax advisor Brisbane we work with you to achieve your goals and minimize your tax. We are a team of professional and affordable business tax accountants providing a complete range of accounting, taxation and business services to clients throughout Australia.