If you own land in Western Australia, you may need to pay land tax—but only if the total unimproved value of your landholdings exceeds $300,000. This includes the combined value of all land you own, even if individual lots fall below the threshold.
Some land is exempt (e.g., your primary residence), but if your total taxable land value crosses the limit, land tax will apply.
How Land Tax is Assessed
Land tax in WA is calculated annually based on your land ownership as of midnight on 30 June each year.
Here’s how it works:
- The Valuer-General calculates the unimproved value (just the land, no buildings) of all land you own.
- Values are based on assessments from the previous financial year.
- Your landholdings are aggregated (added together), excluding exempt land like your home.
- Assessments are typically issued in November or December.
Land Tax Rates in WA (2024–2025)
| Land Value | Land Tax Payable |
| Up to $300,000 | Exempt |
| $300,000 – $420,000 | Flat rate of $300 |
| $420,000 – $1 million | $300 + 0.25% of amount over $420,000 |
| $1 million – $1.8 million | $1,750 + 0.9% of amount over $1 million |
| $1.8 million – $5 million | $8,950 + 1.8% of amount over $1.8 million |
| $5 million – $11 million | $66,500 + 2% of amount over $5 million |
| Over $11 million | $186,550 + 2.67% of amount over $11 million |
Why Is Land Tax Revenue Increasing?
Land tax collections have grown significantly due to rising property values:
- 2021–2022: $815 million (+7.24%)
- 2022–2023: $871 million (+6.87%)
- 2023–2024: $929 million (+6.66%)
- 2024–2025 (estimated): $987 million (+6.24%)
Land Tax Exemptions
Not all land is subject to land tax. You may qualify for an exemption if your property falls under one of the following categories:
- Primary residence (your home)
- Land used for primary production (farming)
- Residential land subdivided for sale
- Land built specifically for rent
- Land owned by charities, religious groups, or not-for-profits
- Aged care facilities, retirement villages, and caravan parks
- Crown land or land used for public purposes
- Mining leases or land under conservation covenants
Understanding Aggregated Land Values and Ownership Structures
Things can get complicated when land is owned in different capacities, such as personally and through a trust.
Example:
If you own land worth $500,000 as an individual and $1 million through a trust, your total aggregated value is $1.5 million.
- Tax on aggregated value: $6,250
- If assessed separately: $300 (individual) + $1,750 (trust) = $2,050
That’s a big difference—highlighting the importance of reviewing your ownership structure and possibly clarifying it with the Office of State Revenue.
What Is the Metropolitan Region Improvement Tax (MRIT)?
If your land is in Perth’s metropolitan area and is subject to land tax, you’ll also pay the Metropolitan Region Improvement Tax (MRIT).
- Rate: 0.14% of the unimproved value over $300,000
- Purpose: Funds public infrastructure and facilities in the metro region
Incorporating Land Tax into Your Investment Strategy
When planning land investments, it’s essential to factor in:
- Land tax liability (annual holding costs)
- Ownership structure (individual vs trust)
- Asset separation to reduce aggregated values
- Succession planning
- Capital gains implications
Working with a tax or property adviser can help you structure your investments to reduce tax and protect your long-term returns.
Key Takeaways
- Land tax in WA applies if your total land value exceeds $300,000 (excluding your home).
- Ownership structure matters—poor planning can lead to higher tax bills.
- Watch for aggregation rules and trust ownership complexities.
- Consider the MRIT if you own land in Perth’s metro area.
- Engage a professional to minimise land tax and align your investment strategy.
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How can we help?
If you have any questions or would like further information, please feel free to give our office on 08 9221 5522 or via email – info@camdenprofessionals.com.au or arrange a time for a meeting so we can discuss your requirements in more detail.
General Advice Warning
The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.
Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.
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