In this overview, we explore the key aspects of land tax laws in Western Australia, Tasmania and The Northern Territory.
Northern Territory
There is NO land tax payable in the Northern Territory.
Western Australia
In Western Australia, you are obligated to remit land tax if your property holdings exceed a value of $300,000. Note: this liability ONLY applies to land not designated as your primary residence.
When you possess multiple lots, their valuations are aggregated, combining the values before calculating land tax. If you own lots in various capacities, they will be assessed individually.
Even if you sell land between July 1 and June 30, your land tax responsibility is still based on your ownership status as of the previous June 30.
Land tax is computed based on the combined taxable value of all non-exempt land held under the same ownership as of midnight on June 30.
The taxable value for land is determined as the lesser of the current unimproved land value or 150% of the previous year’s unimproved value.
You can make use of this online calculator to estimate your land tax liability.
The applicable land tax rate is determined by the aggregated taxable land value. Typically, only land owned by the same individuals is aggregated. For instance, the value of land exclusively owned by you is typically not combined with land jointly owned with another person or with land in which you have a stake through a company or trust.
Metropolitan Region Improvement Tax
If you are liable for land tax, you may also be required to pay metropolitan region improvement tax. This tax is utilised to fund the provision of land for purposes such as roads, open spaces, parks, and similar public amenities within the metropolitan region.
Tasmania
Land tax is an annual tax payable by the owner of land that has been classified as General Land as at 1 July each year. Properties that are taxable include vacant land, commercial properties, rental properties and shacks.
Foreign investors who purchase land on or after 1 July 2022 may be subject to a surcharge on general land.
Land classified as Principal Residence Land is not subject to the foreign investor land tax surcharge.
Visit the State Revenue Office of Tasmania website for further information.
Should you have any queries in relation to any of the information above, don’t hesitate to contact our office.
