Land Tax Assessment Amendment (Build-to-Rent) Act 2026
Land Tax Assessment Amendment (Build-to-Rent) Act 2026
Western Australia
Land Tax Assessment Amendment (Build-to-Rent) Act 2026
Contents
1.Short title2
2.Commencement2
3.Act amended2
4.Section 15B amended2
5.Part 3 Division 4B Subdivision 1 heading inserted2
Subdivision 1 — Preliminary
6.Section 39E amended3
7.Section 39FA inserted3
39FA.Increased exemption development3
8.Part 3 Division 4B Subdivision 2 heading inserted4
Subdivision 2 — General build‑to‑rent exemption
9.Section 39J amended4
10.Part 3 Division 4B Subdivision 3 inserted5
Subdivision 3 — Increased build‑to‑rent exemption
39KA.Increased exemption relating to build‑to‑rent development5
39KB.Limits on eligibility for increased build‑to‑rent exemption6
39KC.Exemption percentage where buildings partially used for build‑to‑rent dwellings7
11.Part 3 Division 4B Subdivision 4 heading inserted7
Subdivision 4 — General provisions
12.Section 39LA inserted8
39LA.Interaction of general exemption and increased exemption8
13.Schedule 1 Division 8A inserted8
Division 8A — Provisions for Land Tax Assessment Amendment (Build‑to‑Rent) Act 2026
26A.Application of amendments8
26B.Land that starts to be used for increased exemption development during 2025‑26 assessment year9
26C.Reassessment9
Land Tax Assessment Amendment (Build‑to‑Rent) Act 2026
An Act to amend the Land Tax Assessment Act 2002.
[Assented to 25 June 2026]
The Parliament of Western Australia enacts as follows:
This is the Land Tax Assessment Amendment (Build‑to‑Rent) Act 2026.
This Act comes into operation as follows —
(a)sections 1 and 2 come into operation on the day on which this Act receives the Royal Assent;
(b)the rest of the Act is deemed to have come into operation on 1 July 2025.
This Act amends the Land Tax Assessment Act 2002.
(1)In section 15B(1)(b) delete “in which the land first became” and insert:
for which the land was first
(2)In section 15B(4) after “39J(3)” insert:
or 39KB(3)
5.Part 3 Division 4B Subdivision 1 heading inserted
At the beginning of Part 3 Division 4B insert:
(1)In section 39E delete the definition of exemption percentage.
(2)In section 39E insert in alphabetical order:
exemption percentage means —
(a)in relation to land used for an exempt development (other than an increased exemption development) — the percentage that applies under section 39I(2); or
(b)in relation to land used for an increased exemption development — the percentage that applies under section 39KA(2);
increased exemption development means a development that meets the requirements for exemption as an increased exemption development set out in section 39FA;
After section 39F insert:
39FA.Increased exemption development
Development meets the requirements for exemption as an increased exemption development if —
(a)it is an exempt development; and
(b)all of the self‑contained dwellings provided by the development become lawfully able to be occupied on or after 1 July 2025 and before 1 July 2030.
8.Part 3 Division 4B Subdivision 2 heading inserted
After section 39H insert:
Subdivision 2 — General build‑to‑rent exemption
(1)Delete section 39J(1) and insert:
(1)Land used for an exempt development is not exempt under this Subdivision in relation to that development for any assessment year that begins 20 years or more after the beginning of the first assessment year for which the land is exempt under this Subdivision or Subdivision 3.
(2)In section 39J(2):
(a)delete “Division for an” and insert:
Subdivision for an
(b)in paragraph (a) delete “Division” and insert:
Subdivision or Subdivision 3
(3)In section 39J(3):
(a)delete “Division even if” and insert:
Subdivision even if
(b)in paragraph (a) delete “Division” and insert:
Subdivision or Subdivision 3
(c)in paragraph (c) delete “Division” and insert:
Subdivision
(4)In section 39J(5) after “subsection (3)” insert:
or section 39KB(3)
10.Part 3 Division 4B Subdivision 3 inserted
After section 39K insert:
Subdivision 3 — Increased build‑to‑rent exemption
39KA.Increased exemption relating to build‑to‑rent development
(1)Land is exempt for an assessment year, to the extent set out in subsection (2), if at midnight on 30 June in the previous financial year the land is used for an increased exemption development.
(2)The land is exempt to the extent of 75%, or other percentage calculated under section 39KC, of the taxable value of the land.
(3)The exemption does not apply to any part of a lot or parcel of land that is excluded land.
39KB.Limits on eligibility for increased build‑to‑rent exemption
(1)Land used for an increased exemption development is not exempt under this Subdivision in relation to that development for any assessment year that begins 10 years or more after the beginning of the first assessment year for which the land is exempt under this Subdivision.
Note for this subsection:
Under section 39J(1), the land could be exempt for 10 further assessment years under Subdivision 2 if it continues to meet the requirements for exemption under that Subdivision.
(2)Land is not exempt under this Subdivision for an assessment year in relation to development that meets the requirements of section 39FA if —
(a)the land was subject to an exemption under this Subdivision for a previous assessment year in relation to the development; and
(b)the development ceased to meet the requirements of section 39FA at any time after that exemption applied.
(3)The Commissioner may determine that land is to be treated as exempt for an assessment year under this Subdivision even if development on the land does not meet the requirements of section 39FA for exemption, if the Commissioner is satisfied that —
(a)the land was exempt under this Subdivision for the previous assessment year; and
(b)the reasons for not meeting the requirements are temporary; and
(c)it is reasonable in all the circumstances to treat the land as exempt under this Subdivision for the assessment year.
(4)The Commissioner may make the determination —
(a)on the Commissioner’s own initiative; or
(b)on the application of the owner or all joint owners of the land.
(5)For the purposes of subsection (2)(b), development on land that is the subject of a determination by the Commissioner under subsection (3) is taken to meet the requirements of section 39FA for the assessment year to which the determination applies.
39KC.Exemption percentage where buildings partially used for build‑to‑rent dwellings
(1)Section 39K, as modified by subsection (2), applies in determining the exemption percentage applicable to land for the purposes of section 39KA(2).
(2)Section 39K is modified by substituting “0.75” for “0.5” in the formula in section 39K(2).
11.Part 3 Division 4B Subdivision 4 heading inserted
Before section 39L insert:
Subdivision 4 — General provisions
After section 39L insert:
39LA.Interaction of general exemption and increased exemption
(1)Land that is exempt under Subdivision 3 for an assessment year is not exempt under Subdivision 2 for the assessment year.
(2)Subsection (1) does not prevent —
(a)a part of a lot or parcel of land from being exempt under Subdivision 2 for an assessment year; and
(b)another part of the lot or parcel from being exempt under Subdivision 3 for that assessment year.
13.Schedule 1 Division 8A inserted
After Schedule 1 clause 26 insert:
Division 8A — Provisions for Land Tax Assessment Amendment (Build‑to‑Rent) Act 2026
The amendments made to Part 3 Division 4B by the Land Tax Assessment Amendment (Build‑to‑Rent) Act 2026 apply in relation to assessment years that begin on or after 1 July 2025.
26B.Land that starts to be used for increased exemption development during 2025‑26 assessment year
(1)In this clause —
increased exemption development has the meaning given in section 39E.
(2)Land that starts to be used for an increased exemption development during the assessment year that begins on 1 July 2025 is taken to be exempt under section 39KA(1) for that assessment year, even though the land was not used for an increased exemption development at midnight on 30 June in the previous financial year.
(3)Despite section 39K(4), a calculation under section 39K (as applied by section 39KC) in relation to land to which subclause (2) applies must be made by reference to the land as at the time when the land started to be used for an increased exemption development.
Subject to the Taxation Administration Act 2003 section 17, the Commissioner may make any reassessment necessary to give effect to this Division and the amendments to Part 3 Division 4B made by the Land Tax Assessment Amendment (Build‑to‑Rent) Act 2026.
Note: The heading to section 39F is to read:
Exempt development
© State of Western Australia 2026. This work is licensed under a Creative Commons Attribution 4.0 International Licence (CC BY 4.0). To view relevant information and for a link to a copy of the licence, visit www.legislation.wa.gov.au. Attribute work as: © State of Western Australia 2026. By Authority: ANDREW JONES, Government Printer