Section 33 of the Land Tax Assessment Act provides that land is exempt for an assessment year if
- at midnight on 30 June in the previous financial year it is owned by, vested in, or held in trust for the following educational institutions
- University of Western Australia
- Curtin University of Technology
- Murdoch University
- Edith Cowan University
- any bona fide educational institution not carried on for the purpose of private profit or gain
- a college, hostel, or hall of residence affiliated with an educational institution referred to above that has as its objects the provision of residence, or education and residence, for enrolled students of the body or institution, and that is not carried on for the purpose of private profit or gain and
- it is in good faith reserved or used as a site for the purpose of providing facilities necessary for or conducive to the attainment of the objects of the institution and the performance of its functions.
However, if during an assessment year, reserved land is used for any other purpose is sold, then land tax is payable on the land for the lesser of the following periods
- the five financial years reckoned retrospectively from and including the assessment year or
- the number of financial years from, and including, the first financial year for which the land was exempt as a result of its use and ownership to and including the assessment year.
The amount of land tax payable for each financial year for which land tax is payable is assessed at the rate applicable for that year under the Land Tax Act.
See Commissioner’s Practice LT 20 ‘Land Tax – Exemption for Land Owned by a Religious Body or an Educational Institution’ for more information.
