Government of Western Australia
Department of Treasury and Finance
Office of State Revenue
2009-10 Land tax
Welcome to the 2009-10 land tax information brochure. This brochure has been prepared as a
general guide to the Land Tax Assessment Act 2002. It is not intended to be a complete statement
of the law and must not be construed to waive or modify any legal obligation in the Act.
Please take time to read this brochure, as it provides important information to help answer the
most commonly asked questions about your 2009-10 land tax assessment.
You can also find the latest information and publications on our website at www.osr.wa.gov.au.
1. What’s new for 2009-10?
• A 50% cap on the annual increase in land values will apply for the
purpose of assessing land tax and metropolitan region improvement
tax (MRIT). This is intended to reduce the volatility and unpredictability
in individual land tax assessments from year to year.
• The time for paying land tax in two instalments has been extended
from 110 days to 175 days, and three instalments extended from
175 days to 240 days. In addition, the flat charge that is applied to the
three instalment payment option has been reduced from 4% to 2%. 1. What’s new for 2009-10?
• A concession for property developers to allow land tax and MRIT
2. What is taxable land?
to be paid on the lower undeveloped (or ‘englobo’) value of the
individual land (i.e. the value of the land prior to subdivision), 3. Who is liable to pay land tax?
rather than the full subdivided value of lots, for one year after the
creation of the lots. The application form and information fact 4. What is land tax and
sheet for this concession are available on the website or by metropolitan region
telephoning (08) 9262 1200. improvement tax?
5. Calculation of land tax
2. What is taxable land?
Taxable land is land you owned at 30 June 2009, excluding exempt land
(see item 6 in this brochure). Examples of taxable land include: 6. Exemptions and concessions
• vacant land; 7. What can I do if my
• residences which are not used by the owners as their assessment is incorrect?
• ‘secondary’ residences such as holiday homes, holiday units or 8. Objections against an
hobby farms; unimproved valuation
• rental homes or units; of land
• commercial properties including shops, offices and factories; 9. Anti-avoidance provisions
• land held in trust or owned in a company name;
10. Your obligations
• entitlement to land under any lease or licence from the Crown;
• land used for business, commercial, professional or trade purposes 11. Contact details and
under arrangements with the Crown, Crown instrumentalities, local payments
authorities or public statutory bodies.
2009-10 Land tax
4. What is land tax and metropolitan
region improvement tax?
Land tax is an annual tax which is calculated on the
aggregated taxable value of all land you owned (excluding
exempt land) at midnight on 30 June before the year of
assessment. This tax is a source of general revenue for the
Government of Western Australia and assists in the funding
of such services as education, health, law and order.
Metropolitan region improvement tax (MRIT) is an
annual tax calculated on the aggregated taxable value
of land you owned (excluding exempt land) at midnight
on 30 June, which is situated in the metropolitan region.
The metropolitan region includes the following local
3. Who is liable to pay land tax? governments: Armadale, Bassendean, Bayswater, Belmont,
If, at midnight 30 June 2009, you owned land (excluding Cambridge, Canning, Claremont, Cockburn, Cottesloe, East
exempt land) with an aggregated taxable value in excess of Fremantle, Fremantle, Gosnells, Joondalup, Kalamunda,
$300,000, you are required to pay land tax for the 2009-10 Kwinana, Melville, Mosman Park, Mundaring, Nedlands,
assessment year. An ‘owner’ includes: Peppermint Grove, Perth, Rockingham, Serpentine-
• a person who holds the freehold title to land; Jarrahdale, South Perth, Stirling, Subiaco, Swan, Victoria
Park, Vincent and Wanneroo. This is a special purpose
• a person who holds land in trust;
tax used to finance the cost of providing land for roads,
• a person who leases land from the Crown or local open spaces, parks and similar public facilities.
• a person deemed to be the owner because he or she
is in possession of the land and that possession is in
5. Calculation of land tax and MRIT
accordance with the agreement for the sale of land Land tax and MRIT are calculated on the aggregated
between vendor and purchaser. taxable value of all taxable property held in the same
ownership (excluding exempt land) at midnight on
NOTE: If you sell land after midnight 30 June 2009, you are 30 June. From 2009-10, increases in unimproved
still responsible for land tax for the 2009-10 assessment year.
valuations of land will be capped at 50% of previous year
The Office of State Revenue does not apportion land tax
and any adjustment of taxes is a private matter between the values for land tax and MRIT purposes.
vendor and the purchaser.
The unimproved value of land is its market value under
normal sales conditions, assuming that no structural
improvements have been made. Land within the Perth
Metropolitan Region and townsites throughout Western
Australia is assessed on the site value basis which
includes merged improvements with examples including
draining, filling, excavation, grading and retaining walls.
Each year, the Valuer General determines the unimproved
values of all land in the State.
The unimproved value that applies to land for land tax and
MRIT assessment purposes for the 2009-10 assessment
year was determined by the Valuer General as at the
date of valuation, being 1 August 2008. This means
that in determining the unimproved values to be
used for 2009-10 land tax assessments, the Valuer
General was required to consider sales evidence
falling within a time period around 1 August 2008
and not at the date of assessment for land tax, being
30 June 2009. Further information on unimproved
valuations can be obtained by visiting the Landgate website
The amount of land tax payable is calculated by applying
the appropriate rate of tax to the aggregated taxable
value of taxable land in the same ownership.
Map of metropolitan region for MRIT.
For example, if you owned two taxable properties with
taxable values of $200,000 and $300,000 respectively,
the tax is assessed on $500,000 at the rate shown in
the table below.
Generally, only land owned by the same owners is
aggregated. For example, land that is owned solely
by you is not usually aggregated with land you own
jointly with another person, or with land that you have
an interest in through a company or trust. In such
circumstances, a separate assessment notice may be
IMPORTANT: If all the land you owned under the
same ownership as at 30 June 2009 is not shown on
one assessment notice, you must advise the Office
of State Revenue – (see item 10 in this brochure).
Land Tax Rates for 2009-10
Aggregated taxable value of land
Exceeding ($) Not exceeding ($) Rate of land tax
0 300,000 Nil
300,000 1,000,000 0.09 cent for each $1 in excess of $300,000
1,000,000 2,200,000 $630 + 0.47 cent for each $1 in excess of $1,000,000
2,200,000 5,500,000 $6,270 + 1.22 cents for each $1 in excess of $2,200,000
5,500,000 11,000,000 $46,530 + 1.46 cents for each $1 in excess of $5,500,000
11,000,000 $126,830 + 2.16 cents for each $1 in excess of $11,000,000
Metropolitan Region Improvement Tax Rate for 2009-10
Aggregated taxable value of land
Exceeding ($) Not exceeding ($) Rate of metropolitan region improvement tax
0 300,000 Nil
300,000 0.14 cent for each $1 in excess of $300,000
If land is not subject to land tax, it will not be liable for MRIT.
6. Exemptions and concessions • Newly constructed/refurbished residential exemption
for a second private residence (limited to two years).
• Residential exemption – this exemption applies
to the owner’s primary residence at 30 June 2009 This exemption applies for two consecutive assessment
if the owner resides there and the land is used years where the owner occupies their primary residence
solely or principally for residential purposes. while constructing or refurbishing a new primary residence.
You can apply for this exemption if all of the following criteria
NOTE: To apply for this exemption you can download the
section 21 - Application for Residential Exemption form
available under Land Tax/Forms at www.osr.wa.gov.au – you own two residences, the first acquired being occupied
as your primary residence and the second acquired (new)
• Newly constructed or refurbished private residence is being constructed or refurbished. The new
residences (limited to two years) residence must have been purchased between 1 July 2008
An exemption can be granted for two consecutive and 30 June 2009;
assessment years for private residential property – you complete the sale of the first acquired residence and
that has taken two or more years for construction deliver to the purchaser on or before 30 June 2011;
or refurbishment to be completed. – you complete and occupy the second acquired newly
You can apply for this exemption if all the following constructed or refurbished residence on or before
criteria are met: 30 June 2011;
– you commence/carry out construction or – while you owned both properties, you must not have
refurbishment of the private residence in the derived any income from the property that was not being
2009-10 financial year; used as your primary residence.
– you do not own any other private residential NOTE: To apply for this exemption you can download the section
property that is exempt from land tax as your 27A - Application for Residential Exemption Moving from One Private
primary residence; Residence to a Newly Constructed or Refurbished Residence form
available under Land Tax/Forms at www.osr.wa.gov.au. For more
– you occupy the property as your primary place information regarding this exemption please contact the land tax
of residence on or before 30 June 2011. enquiry line on (08) 9262 1200.
NOTE: To apply for these exemptions you can download the
• Other exemptions and concessions may be available if the
section 24/24A - Application for Residential Exemption for
a Newly Constructed Private Residence or section 25/25A land is:
- Application for Residential Exemption for a Refurbished – used for a rural business, such as farming;
Private Residence forms available under Land Tax/Forms – owned by a trust/company and used by a disabled
at www.osr.wa.gov.au. For more information regarding
these exemptions please contact the land tax enquiry line
on (08) 9262 1200. – owned by an individual and used by a disabled person
related to the owner;
• Two existing residences in transitional – owned by a religious body and used for religious
circumstances - you may qualify for an exemption purposes;
on two residences which are owned in transitional – owned by an educational institution and used for
circumstances at 30 June 2009 if all the following educational purposes;
criteria are met:
– used for a public or religious hospital;
– the new residence must have been purchased – owned by a public charitable or benevolent institution or a
between 1 July 2008 and 30 June 2009; non-profit organisation and used for the purposes of that
– you must have moved from your original organisation;
residence to the new residence on or before – used as a retirement village;
30 June 2010;
– used as an aged care facility;
– you must have delivered possession of the
– used as a caravan park or camping ground;
former residence to the purchaser on or before
– held under an approved conservation covenant;
30 June 2010;
– owned by a deceased estate;
– while you owned both properties, you must not
have derived any income from the property that – owned by a veteran’s surviving partner or mother;
was not being used as your primary residence. – newly subdivided for residential purposes;
– privately owned and occupied residential property in the
NOTE: To apply for this exemption you can download
the section 27 - Application for Exemption if Moving
Inner City zone.
from One Private Residence to another Private
Partial exemptions and concessions are available where only
Residence form available under Land Tax/Forms at
www.osr.wa.gov.au. For more information regarding some of the owners use the land as their primary residence, or
this exemption please contact the land tax enquiry line where the land is used for both exempt and non-exempt purposes,
on (08) 9262 1200. such as residential and business/commercial purposes.
9. Anti-avoidance provisions
From 2006-07 sections 45A and 45B of the Land Tax
Assessment Act 2002 enabled the Commissioner to
make a determination that a minor (ownership) interest in
a lot or parcel of land can be disregarded for the purposes
of assessing land tax.
At the time of issuing your assessment notice, the
Commissioner may not have made a determination in
accordance with these sections. However, this does not
prevent a future determination, which may result in a
reassessment being made and a new assessment notice
You can find out further information by contacting
(08) 9262 1380 or email email@example.com.
7. What can I do if my assessment is
Most queries regarding your assessment can be resolved
10. Your obligations
by contacting (08) 9262 1500. However, if you wish to You must notify the Office of State Revenue before the due
lodge an objection it must; date for payment shown on your assessment notice if:
• any land you owned at 30 June 2009 has not been
• be in writing with the word ‘OBJECTION’ clearly
included on the assessment notice;
written at the top of the letter;
• you have received separate assessment notices for
• state fully and in detail the grounds of your objection; land owned by the same person (all land in the same
• be lodged within 60 days of the date of issue shown ownership must be included in one assessment for
on your assessment notice. the purposes of aggregation);
NOTE: For an objection against the unimproved • you delivered possession of the land to the purchaser
valuation of land, see item 8 in this brochure. on or before midnight 30 June 2009;
• some or all of the owners have commenced or resumed
Lodgement of an objection does not affect the liability using assessed land as their primary residence on or
for payment of your assessment by the due date. before midnight 30 June 2009;
Send your objection to: • you have met the exemption criteria for a newly
Commissioner of State Revenue constructed/refurbished residence or two residences
Office of State Revenue, owned in transitional circumstances;
GPO BOX T1600,
• land that you own beneficially has been assessed
Perth WA 6845
together with land you own as a trustee;
• land that you own as trustee for a trust has been
8. Objections against an unimproved assessed together with land you own as trustee for a
valuation of land different trust;
• Before lodging an objection against a valuation you • any land that has been exempt was not used for the
should contact the Valuer General on (08) 9429 8400, exempt purpose shown on the assessment notice; or
as it may be possible to resolve your enquiry over • your assessment notice contains any other errors or
the phone. omissions.
• An objection against a valuation must be lodged
within 60 days of the date of issue shown on your
assessment notice, and must include the lot number,
street address of the property, and the name of the
local government authority.
• You must also state fully the grounds of your objection,
and provide a daytime contact number.
• Please lodge your objection with Landgate – Valuation
Services Branch, PO Box 7201 Cloisters Square,
Perth WA 6850.
Lodgement of an objection does not affect the liability
for payment of your assessment by the due date.
You may incur a penalty or be liable to
prosecution if you fail to notify this office of any
errors or omissions in your notice of assessment
before the due date for payment.
11. Contact details and payments
Land tax assessment
(08) 9262 1500
General land tax enquiries (08) 9262 1200
Country callers’ enquiries 1300 368 364
Change of postal address
(08) 9262 1200
Facsimile number (08) 9226 0837
200 St Georges Terrace, Perth
(8.00am to 5.00pm Mon to Fri)
Land tax payments can be made by
Credit card www.osr.wa.gov.au/payments
Telephone: 1300 133 676
Credit card payments are limited to $5,000 per assessment.
VISA MASTERCARD Overseas and Interstate, please call (08) 9262 1500
Contact your participating bank or financial institution to arrange
payment. Please quote the Biller Code 747097 and the reference number
shown on your assessment notice.
Please attach the land tax payment slip to your cheque, made payable to
‘Commissioner of State Revenue’
GPO Box H572 Perth WA 6841
Payment at any Australia Post Office or Agency.
The notes in this brochure have been prepared as a general guide to the Land Tax Assessment Act 2002. They are not intended
to be a complete statement of the law and must not be construed to waive or modify any legal obligation in the Act.