2009-10 Land Tax Brochure by pram542

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									              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



                                                                                  contents
     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?
                                                                                     and MRIT
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?
     primary residence;
•	   ‘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.
     government (lessee);
•	   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
                                                                  at www.landgate.wa.gov.au.

                                                                  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
issued.

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
                                                                  are met:
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
                                                                    beneficiary;
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;




Exemptions &
     – 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;




 concessions
     – 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
                                                                being issued.

                                                                You can find out further information by contacting
                                                                (08) 9262 1380 or email landcomp@dtf.wa.gov.au.
7. What can I do if my assessment is
   incorrect?
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
  Email                                 landtax@dtf.wa.gov.au
  Website                               www.osr.wa.gov.au
  Land tax assessment
                                        (08) 9262 1500
  enquiries
  General land tax enquiries            (08) 9262 1200
  Country callers’ enquiries            1300 368 364
  Change of postal address
                                        (08) 9262 1200
  details
  Facsimile number                      (08) 9226 0837
                                        200 St Georges Terrace, Perth
  In person
                                        (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
    Bpay
                                        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
    Mail
                                        ‘Commissioner of State Revenue’
                                        GPO Box H572 Perth WA 6841

                                        Payment at any Australia Post Office or Agency.
    In person




                                                                  www.osr.wa.gov.au

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.

								
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