Minister looks to alter WA land tax retrospectively

The State Government is looking to take immediate action to alter the Land Tax Assessment Act 2002 after a recent State Administrative Tribunal decision called into attention a hole in the Act.

A recent decision was made regarding a retirement village where some of the land was used for an exempt purpose, while other parts were non-exempt. The tribunal determined that despite only a portion of the land content being used for the retirement village, the exemption covered the entire land parcel.

The is due to a drafting defect in the Act during its rewriting in 2002, that overturns a policy position that pre-dated the current Act.

Finance Minister Mike Nahan said that millions of dollars in revenue was at stake should the issue not be addressed.

“As a result, I will be seeking to amend the legislation retrospectively, effective from July 1, 2003, to ensure that where only part of land is used for an exempt purpose, only that portion receives the benefit of an exemption,” Nahan said.

Those who have already sought a land tax assessment review, and whose objections have not yet been determined, have been told they will not be disadvantaged by the amendments. It is also not anticipated that any past year assessments will be reassessed.

Assessments for the 2013/2014 financial year and other assessments in the future will reflect this policy position.

Details are expected about the measure early next year when the legislation is introduced

It is not anticipated there will be any reassessments of taxpayer’s past year assessments.

Of all land owners in WA, approximately 116,000 will be subject to land tax in 2013/2014, with expected revenue of $657 million to be raised.