This article is from the Australian Property Journal archive
MORE homeowners affected by construction delays will be spared the land tax bill after new legislation was passed in Western Australian Parliament.
The Land Tax Assessment Amendment (Residential Construction Exemptions) Bill 2023 expands the Land Tax Assessment Act 2002, under which 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 1st July 2020 and 30th 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 Cook government said.
The Bill stipulates 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.
“The last few years have been challenging for the construction industry, with labour and material shortages, and strong demand causing pressure for the sector,” said Finance Minister Sue Eller.
“This Bill offers some relief to homeowners who are no doubt feeling the pinch as they wait for their building project to be complete.”
Homeowners would 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.
