Land tax relief for homeowners affected by construction delays

• Cook Government introduces Land Tax Assessment Amendment (Residential Construction Exemptions) Bill 2023 into State Parliament
• Land tax exemptions temporarily extended for eligible homeowners building new homes
• Amendments will provide land tax relief for homeowners affected by construction delays

The Cook Government today introduced legislation into State Parliament that will provide land tax relief for eligible homeowners affected by construction delays.

The existing land tax residential construction exemptions provide an exemption of up to two assessment years for constructing or refurbishing a home.

Delays in the residential building industry mean many homeowners may need to pay land tax because their new homes were not completed within two years.

The Bill introduces two temporary exemptions for eligible homeowners who started building or refurbishing their homes between 1 July 2020 and 30 June 2023:

• 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 limited 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.

Taxpayers who have already paid land tax, but are eligible for one of the new temporary exemptions, will be eligible for a refund of the tax paid. 

More information about the proposed legislation is available here.

Comments attributed to Treasurer Rita Saffioti:

"The residential construction market has faced constraints in recent years, with labour and material shortages limiting the industry's ability to respond to the strong demand for new housing.

"This temporary extension will provide relief to the homeowners most affected by delayed construction times."

Comments attributed to Finance Minister Sue Ellery:

"The Cook Government has introduced this legislation as a temporary measure to assist WA homeowners.

"We are acutely aware of the hardships faced by some homeowners who have been building or renovating a home over the past couple of years due to delayed construction times."

Comments attributed to Housing Minister John Carey:

"Our Government is committed to easing the pressures on households, and we're using every lever we can to boost housing supply – including through temporarily extending land tax exemptions for eligible homeowners currently building a new home.

"This tax amendment should provide some welcome relief for homeowners who are building or renovating a home."