- Western Australian Parliament has passed the Land Tax Assessment Amendment (Residential Construction Exemptions) Bill 2023
- Extension of the residential construction exemptions to provide relief to eligible homeowners
- Amendments are an important step to assising homeowners affected by construction delays
The Western Australian Parliament has passed the Land Tax Assessment Amendment (Residential Construction Exemptions) Bill 2023 enabling the Cook Government to extend land tax relief for eligible homeowners affected by construction delays.
Under the Land Tax Assessment Act 2002, a residential construction exemption applies if the owner builds or refurbishes a home on the land and moves into it when the works are completed. To qualify, construction must be completed and the owner must move into the home within two assessment years.
The Bill extends the construction exemptions for owners who started building or refurbishing a home between 1 July 2020 and 30 June 2023.
Extending the exemptions supports those building or renovating their homes, ensuring they are not charged land tax due to delays beyond their control.
The Bill provides two temporary exemptions for eligible homeowners:
- A three-year exemption will apply for a home being constructed or refurbished if the owner does not also receive an existing exemption for their current home. The exemption can be extended for another year in exceptional circumstances, such as where the builder goes into liquidation.
- A two-year exemption will apply for a new home that is being built or refurbished while the owner lives in their existing home. The exemption can be extended for another year in exceptional circumstances, such as material or labour shortages caused by market conditions.
Homeowners still need to meet all eligibility requirements to receive the exemption, such as using the property as their primary residence after construction. Taxpayers who have already paid land tax, but are eligible for one of the new temporary exemptions, will be eligible for a refund.
To provide certainty to affected homeowners, the Minister for Finance used pre-enactment powers to allow the exemptions to be applied to eligible homeowners from early December 2023.
More information on this legislation is available on the Parliament of Western Australia website
As stated by Treasurer Rita Saffioti:
“We understand the impact building delays are having on Western Australian families, which is why ourGovernmentis continuing to look at a range of measures to ease the pressure.
“This legislative change will ensure eligible people dealing with delays to their new home builds aren’t further impacted by having to pay land tax on properties that aren’t completed.”
As stated by Finance Minister Sue Ellery:
“This Bill offers some relief to homeowners who are no doubt feeling the pinch as they wait for their building project to be complete.
“The last few years have been challenging for the construction industry, with labour and material shortages, and strong demand causing pressure for the sector.
“This tax exemption should provide some relief to homeowners caught up in the delays.”
As stated by Housing Minister John Carey:
“Our Government has introduced a raft of measures to further bolster our housing stock and
importantly, get families into their completed homes.
“Along with the recently introduced Builders’ Support Facility we are providing targeted support to homebuilders.
“I encourage all eligible homebuilders to apply for the relief measures available to them.”
