If you own or are planning to invest in property in Western Australia, understanding your obligations regarding land tax is essential. With rates, thresholds, and exemptions that may differ depending on your property type and usage, staying well-informed can save you thousands of dollars annually. This guide breaks down everything you need to know about Land Tax in WA, helping you avoid surprise bills and ensure you’re fully compliant.
What Is Land Tax in WA?
Land tax is an annual tax levied by the WA State Government on landowners when the combined taxable value of their land exceeds a certain threshold. The tax is based on the unimproved value of land, as determined by the Valuer General.
This tax applies to:
- Investment properties
- Vacant land
- Commercial properties
- Holiday homes
Importantly, your principal place of residence is usually exempt, meaning you won’t pay land tax on the home you live in.
Current Land Tax Rates in WA (2023–2024)
Land tax in Western Australia is calculated on a sliding scale, depending on the total taxable value of the land you own. Below is a summary of the 2023–2024 annual land tax rates:
| Taxable Land Value (AUD) | Tax Payable |
|---|---|
| Up to $300,000 | Nil |
| $300,001 – $420,000 | $300 + 0.20% of amount > $300,000 |
| $420,001 – $1,000,000 | $540 + 0.90% of amount > $420,000 |
| $1,000,001 – $1,800,000 | $5,700 + 1.80% of amount > $1,000,000 |
| $1,800,001 – $5,000,000 | $20,100 + 2.00% of amount > $1,800,000 |
| $5,000,001 and above | $66,100 + 2.67% of amount > $5,000,000 |
These rates are applied on a per ownership basis, meaning that the values of multiple properties owned by the same legal entity will be aggregated.
Who Has to Pay Land Tax?
Land tax is paid by individuals, companies, trusts, and partnerships that own taxable land in WA. It’s assessed annually by the WA Department of Finance based on land holdings as of 30 June each year.
You may have to pay land tax if:
- You own an investment property in WA.
- You’ve purchased land for development or resale.
- You’ve inherited real estate that isn’t your primary residence.
Exemptions and Concessions
Certain types of land are eligible for exemptions or concessions. For example:
- Your primary residence (family home) is generally exempt.
- Primary production land (used for farming) can be exempt under certain conditions.
- Charitable organizations may be eligible for full or partial exemptions.
For a full list of exemptions, refer to the WA Department of Finance’s website.
How Is Land Value Assessed?
The taxable value of land in WA is based on the unimproved value, which is the value of the land without any structures or landscaping. This valuation is determined by the Valuer General every year and is based on recent land sales in the area.
If you disagree with the valuation, you can lodge an objection with Landgate, the agency responsible for delivering land information services in WA.
Paying Your Land Tax
Land tax bills are typically issued in July or August each year. You can pay:
- In full by the due date (to avoid interest penalties), or
- By choosing an instalment plan through the WA Government’s Revenue Online portal.
It’s crucial to pay land tax on time to avoid interest charges or legal action.
Property Investors: Tips to Reduce Land Tax
If you’re a property investor or planning to diversify your portfolio, consider these tips to manage your land tax liability:
- Consider ownership structures: Owning property through different legal entities (like trusts or companies) may help reduce aggregation.
- Buy land below the tax threshold: If possible, aim to keep holdings under the exemption threshold.
- Seek professional advice: Tax professionals can help you structure deals to optimize tax outcomes.
Final Thoughts
Understanding land tax in WA is vital for all property owners beyond their primary residence. Taxes can vary based on property value, ownership structure, and land use, and getting it wrong can be costly. Whether you own one investment property or a portfolio of commercial real estate, staying informed about thresholds, rates, and exemptions can result in significant savings.
For up-to-date information and to manage your land tax responsibilities, visit the WA Government’s official land tax page.