Land tax relief extended for people building new homes

• Homeowners will now be given longer to complete construction of their future home without triggering a land tax liability
• Owners who began constructing their home between 1 July 2020 and 30 June 2023 may now be eligible for the more generous exemptions 

The State Government has announced a temporary extension to the two-year land tax exemptions provided to people constructing or refurbishing their future home.

The temporary extension is available to homeowners who signed their building contract between 1 July 2020 and 30 June 2023.

Eligible homeowners who are not receiving an exemption for another residence may now receive an exemption for:

• the first three assessment years that their residence is being constructed; and
• an additional fourth year in very limited circumstances, such as builder liquidation.

Eligible homeowners who are receiving an exemption for a second residence:

• will no longer be required to repay two years of land tax if they are unable to meet the two‑year construction timeframe; and
• may receive an exemption for an additional third year in exceptional circumstances outside their control, including situations where delays were caused by demonstrated material or labour shortages.

Homeowners who are eligible for the temporary exemption and have already paid land tax will be eligible for a refund.

RevenueWA will provide further information about the changes on its website shortly.

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 temporary extension will support homeowners who are building or renovating their future home, ensuring they are not charged land tax due to construction delays which are outside their control.

"There will be discretion to extend the land tax relief for an additional year if building delays were caused by certain exceptional circumstances.

"This temporary measure will give peace of mind to homeowners affected by the recent constraints in the residential construction market."