Land tax hike for WA property investors
WA residential and commercial property investors are budgeted to pay an extra $826 million in property taxes over the next four years.
It follows State Treasurer Mike Nahan introducing the state's second consecutive land tax increases in last week’s State Budget.
This year’s move follows a 10% increase in land tax rates in last year's budget.
Commercial property and residential investors face a $300 flat tax for land with an unimproved value of between $300,000 and $420,000, and the raising of land tax rates on most properties valued above those levels.
Currently investment property is taxed at a rate of 0.11% of its value above $300,000, at 0.58% above $1 million and at 1.51% above $2.2 million.
Property with an unimproved value of less than $300,000 will remain free from land tax.
Only the top rate of the current land tax scale, the 2.67% levied on the value of land above $11 million remains unchanged in the State Budget.
The State Government now expects to collect $939 million in land tax with next financial year, it is expected to be 26% higher.
Mr Nahan says WA’s land tax regime remained “competitive” with other states citing a landholding with an unimproved value of $1 million being levied $1750 in land tax next year, up from $770 currently.
That compares to $9188 in NSW, $2975 in Victoria and $4500 in Queensland, he said.
