Land Tax – Concession on Land Tax Payable for

							                 F a c t                          S h e e t

   Land Tax – Concession on Land Tax
      Payable for Subdivided Lots
        For land created during 2008/09 and still owned at 30 June 2009
                                Land Tax Assessment Act 2002
                                           1 July 2009



Introduction
Section 43A of the Land Tax Assessment Act provides a concession on the amount of land tax
payable on subdivided lots owned at 30 June each year, subject to the following conditions:
1. The subdivision must have been approved in the previous year of assessment (ie between
   1 July 2008 and 30 June 2009).
2. The subdivider must still own the subdivided lot at 30 June immediately preceding the year
   of assessment for which the application for concession is made.
3. An application for the concession must generally be made to the Commissioner of State
   Revenue no later than 31 August of the year of assessment. However, the Commissioner
   may grant an extension to a date no later than the following 30 June where reasonable
   grounds are shown. Due to the delay in the passage of the legislation, applications will be
   accepted up to the 30 June 2010 for the 2009/10 year of assessment. Nevertheless, early
   lodgement of the application form will ensure that the concession is taken into account
   when the assessment is issued.
4. The concession applies for only one year of assessment following the creation of the lot.
5. The subdivided lot must have been created for residential purposes.
6. The subdivided lot must be vacant land to the extent that it does not have on it a building
   that may be used for residential purposes.
7. The subdivided lot should not be more than 2,000m2. However, subdivided lots greater
   than 2,000m2 may be eligible for the concession if intended for a building or group of
   buildings that are solely for residential purposes and contain a number of residential units.
8. The amount determined to be the concessional value of the lot will apply only if it is less
   than the unimproved value that would normally have applied for land tax purposes.
9. Strata lots are not eligible for concessional treatment unless they are survey-strata lots.
This concession allows subdividers to pay land tax and metropolitan region improvement tax
on the lower undeveloped or englobo value of land holdings, rather than the full subdivided
value of lots, for one year after the creation of the lots.
The unimproved value of each subdivided lot still held at 30 June immediately preceding the
year of assessment will be calculated by apportioning the unimproved value of the land in its
englobo state to the subdivided lot based on the lot’s area as a proportion of the land area of
the englobo lot.
NOTE: This concessional assessment scheme for subdivided lots will only apply for the
first year of assessment following the year in which the subdivided lots were created,
for any lots still owned by the subdivider at the relevant 30 June.


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For example:
  An englobo lot of 2ha (20,000m2) is subdivided in February 2009 into twenty (20) 1,000m2 lots.
  At 30 June 2009 the subdivider still owns 15 of the lots and the unimproved value of each
  individual lot is $200,000
  At 30 June 2008 the englobo lot was valued at $2,000,000.
  The subdivider applies for concessional assessment in respect of the lots.
  The land tax assessment for 2009/2010 (ie. based on land owned at 30 June 2009) would be
  calculated as follows:

         PREVIOUS ASSESSMENT                           CONCESSIONAL ASSESSMENT

                                          15 Lots x englobo value of each Lot
                                          Englobo value of each lot = 1,000m2 X $2,000,000
 15 Lots x $200,000                                                       2ha          1

                                                                                   = $100,000
 Assessable Value = $3,000,000            15 Lots x $100,000
                                            Assessable Value    = $1,500,000


Application for the Concession
An application for concessional assessment for the 2009/2010 year of assessment must be
lodged with the Office of State Revenue by 30 June 2010, in respect of eligible lots owned at
30 June 2009. Applications received after that date cannot be considered.

Early lodgement of the application form will ensure that the concession is taken into account
when the assessment is issued.

Application forms are available from the Office of State Revenue and from our website
at www.osr.wa.gov.au.


Contact Information
Should you require any further information regarding the operation of the concessional scheme
in respect to subdivided lots or your entitlement to the concession, please contact:

Office       Office of State Revenue         Telephone     (08) 9262 1200
             Plaza Level,                                  1300 368 364 (WA Country Callers
             200 St Georges Terrace                        general enquiries)
             PERTH WA 6000                                 (08) 9262 1333 (change of postal
                                                           address)
Office       8:00 am – 5:00                  Facsimile     (08) 9226 0837
Hours        Monday to Friday
                                             E-mail        landtax@dtf.wa.gov.au
Postal       Office of State Revenue         Website       www.osr.wa.gov.au
Address      GPO Box T1600
             PERTH WA 6845

Note: The information in this FACT SHEET is for guidance purposes only. It is not an
exhaustive explanation of the Land Tax Assessment Act 2002, and must not be
construed to waive or modify any legal obligation provided in the Act.



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