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Land tax in Western Australia (WA) is an annual tax on the unimproved value of land owned as of 30 June each year. It’s administered by RevenueWA, part of the WA Department of Finance, and applies to most investment, commercial, and vacant lands — but not your main residence.
Land tax is assessed based on the aggregated taxable value of all landholdings you own in WA, excluding land used as your principal place of residence (PPR) or land used for primary production.
For property investors, trusts, and SMSFs, understanding how land tax WA works is critical for avoiding overpayments and ensuring compliance.
How Land Tax Is Calculated in Western Australia
Your land tax assessment is determined by:
- The site value of your land, as assessed by the Valuer-General’s Office; and
- The total value of your taxable landholdings as of midnight on 30 June.
Rates are progressive, meaning the more your land portfolio is worth, the higher the percentage of tax applied.
As of the 2024–25 financial year, land tax in WA starts at $300 for land valued between $300,000 and $420,000, increasing gradually up to 2.67% for land above $11 million.
(Source: RevenueWA – Land Tax Rates and Thresholds)
Land That Is Exempt from Land Tax
Certain types of property are fully or partially exempt under WA law. You generally won’t pay land tax on:
- Your main residence, if you occupy the property and it’s your primary home;
- Primary production land, such as farms or vineyards actively used for agriculture;
- Charitable or religious institutions’ land; and
- Public and local government land.
If your property’s use changes (for example, if you move out and rent it), you may lose your exemption. The RevenueWA main residence exemption rules outline how and when exemptions apply.
Common Triggers for Higher Land Tax in WA
Understanding what can cause an increase in your assessment is key to keeping your land tax WA liability low.
1. Property Aggregation
RevenueWA automatically aggregates the value of all taxable land owned by an individual, company, or trust — even if held under separate titles.
For example, if you own two investment properties each valued at $500,000, land tax is applied to the combined $1 million value, not separately.
2. Trust Ownership
Trusts are treated as separate taxpayers, but their land is assessed independently depending on the trust type.
For instance, discretionary trusts cannot generally access the tax-free threshold unless beneficiaries are fixed.
If you hold property through multiple trusts or entities, structuring them correctly can minimise aggregation and reduce land tax exposure.
(Reference: RevenueWA – Land Tax and Trusts)
3. Change in Use or Ownership
If you move out of your home and rent it, or subdivide land, the use classification changes — potentially triggering land tax where none applied before.
4. Valuation Increases
WA property values have risen significantly in recent years, and the Valuer-General’s annual revaluations can increase your taxable site value — even without any new property purchases.
How to Reduce Your 2025 Land Tax Assessment
While land tax is largely unavoidable for investors, there are several legitimate ways to reduce your 2025 liability.
1. Review and Object to Your Valuation
Each year, property owners receive a land tax assessment notice showing the site value used for tax purposes. If you believe the valuation is excessive, you can lodge an objection with the Valuer-General within 60 days.
Professional valuers or advisors like Insight Advisory Group can help prepare valuation evidence to support your claim.
2. Check Aggregation and Entity Structures
If you own multiple properties, review ownership structures.
Using the right mix of trusts, companies, and SMSFs can reduce aggregation and potentially lower the taxable total.
Our team at Insight Advisory Group can assess whether your entities are being correctly treated under WA law, ensuring you’re not paying more than required.
3. Claim Available Exemptions
Double-check that you’ve claimed every applicable exemption, including:
- Main residence exemption
- Primary production concession
- Transitional exemptions (if recently moved)
- Vacant land exemptions (for properties under construction)
The RevenueWA Land Tax Exemptions page provides details on each category and required forms.
4. Time Purchases and Ownership Transfers
If you’re buying or selling property close to 30 June, consider how the timing affects your assessment.
Ownership on 30 June determines who is liable — so settling after that date can defer land tax to the following year.
5. Reassess Land Use and Zoning
Land used for short-term rental (like Airbnb) or vacant development blocks may attract land tax even if previously exempt.
Ensure the land use classification on record accurately reflects how your property is used — errors can lead to inflated assessments.
Land Tax Planning with Insight Advisory Group
At Insight Advisory Group, we work with individuals, investors, and businesses across Perth to help optimise property ownership structures and reduce unnecessary land tax exposure.
Our advisory services include:
- Reviewing land valuations and aggregation
- Structuring investments through trusts, companies, or SMSFs
- Managing objections and appeals
- Identifying legitimate exemptions and concessions
- Integrating land tax planning with overall tax and asset strategies
Learn more about our Tax Advisory Services or Contact Us for personalised advice before your 2025 assessment.
FAQs — Land Tax WA
Q: Who pays land tax in WA?
Anyone who owns taxable land in WA as of midnight 30 June — excluding their primary residence or exempt land — may need to pay land tax.
Q: How is land tax calculated?
It’s based on the aggregated unimproved site value of your taxable landholdings. Higher land values attract higher marginal rates.
Q: Does my home attract land tax?
No. Your main residence is exempt if it’s occupied as your principal place of residence.
Q: Can I object to my assessment?
Yes. You can lodge an objection with the Valuer-General within 60 days if you believe your valuation or aggregation is incorrect.
Q: How can a trust reduce land tax?
Using multiple fixed or unit trusts can sometimes reduce aggregation, but rules differ by trust type. Always seek professional advice before restructuring.
Key Takeaways
- Land tax WA is calculated on the unimproved value of all taxable land you own as at 30 June.
- Review your valuation and entity structures each year to avoid overpaying.
- Claim exemptions for main residences, farms, and charitable land.
- Professional structuring and valuation advice can significantly reduce your annual bill.
With the right strategy and support from Insight Advisory Group, you can manage your property portfolio efficiently and minimise your WA land tax exposure in 2025.
