Western Australian Consolidated Acts

LAND TAX ASSESSMENT ACT 2002 - SECT 14

14 .         Land tax on newly subdivided private residential property

        (1)         Land tax is payable in accordance with this section when private residential property is subdivided if —

            (a)         the property was exempt or partially exempt from land tax under Part 3 Division 2 for any of the 5 financial years reckoned retrospectively from and including the financial year in which the land was subdivided; and

            (b)         the area of the property is greater than 2.0234 hectares.

        (2)         Land tax is payable by the subdividing owner of the property on the value of the taxable portion of the property (calculated under subsections (5) and (6)) for each of the 5 financial years reckoned retrospectively from and including the financial year in which the land is subdivided.

        (3)         The amount of land tax payable for each of those 5 financial years is assessed, at the rate applicable for that year under the Land Tax Act 2002 , as if the taxable portion of the property were the only land of the subdividing owner on which land tax was payable for that year.

        (4)         However, if land tax has already been levied on any part of the taxable portion of the property under another provision of this Act for any of those 5 financial years, then —

            (a)         if a partial exemption did not apply to that part of the taxable portion for the year under Part 3 Division 2 no land tax is payable under subsection (2) on that part for that year; or

            (b)         if a partial exemption applied to that part of the taxable portion, or an interest in it, for that year under Part 3 Division 2 land tax is payable for that year under subsection (2) on the part of the property to which the partial exemption applied.

        (5)         The taxable portion of the property is the portion that remains after subtracting from the whole area of the property the greater of the following areas —

            (a)         the area of the lot or parcel or portion of land on which the private residence was situated at the time of the subdivision;

            (b)         2.0234 hectares.

        (6)         For the purposes of subsection (2), the value of the taxable portion of the property for a financial year is —

            (a)         if the financial year is 2008/09 or earlier — the amount that bears to the unimproved value of the whole of the property at midnight on 30 June immediately before the financial year the same proportion as the area of the taxable portion bears to the whole area of the property; or

            (b)         in any other financial year — the amount that bears to the taxable value of the whole of the property for the financial year the same proportion as the area of the taxable portion bears to the whole area of the property.

        (7)         Nothing in this section affects the liability of any person to pay land tax on the taxable portion of the property for any financial year after that in which the land is subdivided.

        (8)         Despite section 17(4) of the Taxation Administration Act 2003 , the Commissioner must make any reassessment necessary to give effect to this section.

        [Section 14 amended by No. 19 of 2009 s. 6.]