Financial Services

Land Tax Policy

Further information

Land Tax is an annual tax assessed to the owner of the land.

It is imposed by all states (but not the Northern Territory) and is normally based on ownership and usage of land at midnight on 30 June each year. Land tax assessments are issued on the basis of registered land holdings. The imposition of land tax is controlled by state legislature.

The comments below relate to land located in Western Australia only. Should the University own land located outside Western Australia that is subject to land tax generally, different rates will apply.

Exemptions

There are a number of categories of land which may qualify for an exemption. The following categories are relevant to non-profit associations, such as universities:

  • Land owned by non-profit associations where it is used solely for the association's purpose.
  • Land used for university purposes is exempt from land tax; however, in the instance that land is used for an alternative purpose, such as a commercial purpose, the university must notify the Commissioner and will then be subject to land tax.

Land tax rates – WA

Effective for the financial years 2008-09,  2009-10, 2010-11, 2011-12 and 2012-13.

Total taxable value of the land:

Exceeding ($) Not exceeding ($)     Rates
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 $630.00 + 0.47 cent for each $1 in excess of $1,000,000
2,200,000 5,500,000 $6,270.00 + 1.22 cents for each $1 in excess of $2,200,000
5,500,000 11,000,000 $46,530.00 + 1.46 cents for each $1 in excess of $5,500,000
11,000,000 and upwards $126,830.00 + 2.16 cents for each $1 in excess of $11,000,000

Note: The land tax rate scale is reviewed annually as part of the budget review process.

Metropolitan Region Improvement Tax (MRIT)

In addition to land tax, MRIT is a special tax raised on all land situated within the metropolitan region which is subject to land tax, and is used to fund the cost of providing land for roads, open spaces, parks and similar public facilities.

The tax is imposed at the rate 0.14 cents for every dollar of the taxable value of the land in excess of $300,000

Unimproved land value

The unimproved value of land is the amount the land would realise under normal sale conditions assuming that no structural improvements had been made. The Valuer-General determines the value annually.