• Your Assessment

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    'Reasons for receiving a land tax assessment notice'

    Reasons for receiving a land tax assessment notice

    Land tax is imposed on Western Australian land and forms part of the Consolidated Revenue of the State. The money is used to provide essential services to the community such as education, health, public safety and law and order.

    Who pays land tax?

    You are required to pay land tax for the 2017-18 assessment year if, at midnight on 30 June 2017, you are the owner of land (excluding exempt land) with an aggregated taxable value in excess of $300,000. Land used as your principal place of residence is exempt from land tax.

    You are an owner if you:

    • hold the freehold title to land;
    • hold land in trust;
    • lease land from the Crown or local government (lessee); or
    • are in possession of the land in accordance with the agreement for the sale of land between vendor and purchaser.

    If you sell land between 1 July 2017 and 30 June 2018, you are still liable for the land tax for the 2017-18 assessment year. Apportionment between the vendor and purchaser should be organised privately between the parties.

    Land tax assessment notices are generally issued between October and January. See Understanding Your Notice of Assessment.

    Sections 45A and 45B of the Land Tax Assessment Act 2002 enable 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.  Contact (08) 9262 1380 or email landcomp@finance.wa.gov.au for further information.

    If you own land owned jointly with someone else
    The land is assessed separately from any land you own solely, and from any land you own with any other person. For example, if you owned one lot alone, a second lot jointly with John Citizen, and a third lot jointly with John Citizen and Mary Citizen, each of those lots would be assessed separately.
    If you hold land as trustee
    You will be liable for any land tax assessed on that land as if the land was your own. If you hold land in trust for different persons, land tax is assessed separately on the land owned for each separate trust. If you hold taxable land in trust for another person and you are also the beneficial owner of other land, land tax is assessed on the land held in trust separately from the land held beneficially but there may be circumstances that require land to be assessed jointly. Land used as a trustee's principal place of residence is not exempt unless the property is specifically held on behalf of a disabled beneficiary who uses the land as their sole or principal place of residence. See Property owned by a trust.
    If you lease land from the WA Government, a government agency, local government or public statutory authority
    You are considered the owner of that land and you are liable to pay land tax. Where such lease or other arrangement is terminated involuntarily before its expiry date, a rebate may be allowed in relation to the portion of the assessment year after the termination day.
    If you subdivide a lot
    A lot is a defined portion of land approved by the Western Australian Planning Commission (WAPC). A newly subdivided lot is assessable for land tax from the 30 June following approval of the subdivision by the WAPC, regardless of whether a certificate of title has been issued for the new lot.

    For example, for a subdivision approved before 30 June 2017, each of the new lots would become assessable as at 30 June 2017 with the tax being levied from and including the 2017-18 year of assessment. For a subdivision approved after 30 June 2017, the original lot as it existed before the subdivision would be assessable for land tax for the 2017-18 year of assessment and the new lots would become assessable as at 30 June 2018 for the 2018-19 year of assessment.

    New subdividers of residential property: Commissioner's Practice LT 2 'Newly Subdivided Residential Property'.

    New subdividers of rural business land: Commissioners Practice LT 3 'Newly Subdivided Residential Business Land'.

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    Valuation of property

    Each year, the Valuer-General determines the unimproved values for all land in the State.

    The unimproved value of land is its market value under normal sales conditions, assuming no structural improvements have been made. The date at which the unimproved values are determined is set by the Valuer-General and is used for the purposes of your land tax assessment.  See the Landgate website for information about unimproved valuations.


    Property owned by a trust


    Land owned in a trust capacity may be assessed separately from land owned by that party in their own right. If your assessment includes land that is held by a trust you need to advise State Revenue in writing to ensure you are receiving a correctly calculated assessment.

    When advising of trust ownership you will need to provide the endorsed Offer and Acceptance from the purchase of the land and the Deed of Trust (a minimum of the schedule and execution pages).

    Land owned in a trust capacity is not eligible for a residential exemption except where:


    Your rights and obligations

    You must notify the Office of State Revenue before the due date for payment shown on your assessment notice if:

    • any land you owned at 30 June has not been included on the assessment notice;
    • you have received separate assessment notices for land owned by the same person (all land in the same ownership must be included in one assessment for the purposes of aggregation);
    • you have sold the land and delivered possession of the land to the purchaser on or before midnight 30 June;
    • land that you own beneficially has been assessed together with land you own as a trustee;
    • land that you own as trustee for a trust has been assessed together with land you own as trustee for a different trust;
    • land that you own as trustee is receiving a residential exemption;
    • any land that has been exempt was not used for the exempt purpose shown on the assessment notice; or
    • your assessment notice contains any other errors or omissions.

    The Office of State Revenue's customer service charter outlines your rights and responsibilities and sets out the level of service you can expect.

    You are required to retain tax records for at least 5 years. See the record keeping requirements.

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    Audits and investigations

    The Office of State Revenue conducts audits and investigations of all taxpayers to ensure compliance with the legislation administered, and to identify risks that may impact upon compliance. Please see our audits and investigations page and please refer to the Office of State Revenue Compliance Program.

    Anonymous information

    The Office of State Revenue investigates anonymous disclosures from members of the public. Confidentiality is assured and we welcome any information about non-compliance relating to the taxes, duties and grants we administer. Anonymous disclosures can be reported by telephoning (08) 9262 1380 or using the Complaints and Feedback System.

    Information exchange

    For the purpose of administering WA taxation laws, we exchange information with other state revenue offices and the Australian Taxation Office to assist the proper identification and accurate assessment of taxation liabilities. This sharing of information is carried out in accordance with section 114 of the Taxation Administration Act 2003, similar legislation in other States and Territories, and under Table 4 of section 355-65 of Schedule 1 of the Taxation Administration Act 1953 (Cth).

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