Understanding Land Tax in WA Property Settlements

Have you looked into WA’s land tax requirements lately? KDD Conveyancing is a leading settlement agency in Perth, built on 27 years of conveyancing knowledge and experience in property settlement services. As top-rated property settlement agents in Perth, we are here to help you understand the tax and what is involved during the process of your settlement.

This blog will delve into the key aspects of land tax and its implications in WA property settlements.

What is Land Tax?

Land tax in Western Australia is an annual tax levied on land not used as your primary residence. As a part of the property settlement process, it is important to assess any land tax liabilities.

Between October and January each financial year, you will receive a notice of assessment for the land you own as at midnight on 30th June.

Land Tax You Will Need To Pay

The annual land tax amount you will pay will depend on the combined unimproved value of your taxable property and the tax rates set by the WA Government.

You will not normally have to pay land tax on your main home, your primary residence. Land tax will only apply to your investment property or any other land you own.

By registering with the Department of Finance’s online services, you can receive your notices by email, view your land tax records, and pay your assessment.

What Happens During Property Settlement?

Before property settlement, a settlement agent can request a Certificate of Land Tax Charges from RevenueWA, which details the outstanding tax that will be applied to a lot of land.

Your settlement agent may also give you this fact sheet to help you understand the full implications of land tax.

How Does Land Tax Affect Property Settlements?

It is important to note that land tax can impact your property settlements. 

Land tax affects property settlements in WA by adding to the costs that need sorting out before the transfer. It is a liability attached to the land itself, not just the owner. It’s assessed each year on June 30th, and any unpaid amounts must be cleared during settlement. 

Depending on the type of property transaction, land tax may or may not be adjusted between the the buyer and seller. In WA, land tax can affect settlements, especially with investment properties. If a seller has an outstanding bill, it needs to be settled.

As your property conveyancer, we’ll handle the paperwork, request the land tax certificates, and ensure everything is accounted for so the settlement goes smoothly.

To learn more about the impacts of land tax on your property, you can visit the West Australian Government Department of Finance (Revenue WA) website and explore their Land Tax Guide.

What Are Land Tax Rates And Exemptions?

The WA Government sets the land tax rates annually. The rates will differ according to the aggregated taxable value of the land. You can view the current land tax rates here.

There are also various exemptions, such as:

• Primary residence exemption: An individual or couple’s principal place of residence is generally exempt from land tax.
• Family home exemption: Certain family homes may be exempt or subject to a reduced rate.
• Retirement village exemption: Land within retirement villages may be exempt or subject to a reduced rate.

Other eligibility exemptions on land tax may apply if you have purchased a property for the purpose of constructing your primary residence.

Should I seek Professional Advice About Land Tax?

Understanding land tax can be complex, and it is highly recommended that you seek advice from a qualified tax or financial advisor. 

They can help you assess your situation, understand the potential land tax implications, and make informed decisions when buying an investment property in WA or during your property settlement.

In Conclusion

We hope that this article has helped you understand the implications of land tax and how it impacts property settlements in Western Australia.

Owning an investment property comes with many responsibilities, including paying land tax. By understanding land tax and its implications, you can make informed decisions about buying an investment property in WA and avoid the risk of potential fines.

Contact Us Today

When you have found your perfect home, we’re the settlement agents who will be right here to guide you through your contract. 

If you would like to discuss our residential settlement processes further, why not contact our friendly team at KDD Conveyancing today? If you’re looking to learn more about property settlement or conveyancing or you would like to learn more about the WA property industry, then don’t forget to check out our blog for more insights.