A WA parliamentary question addresses potential financial impacts of building delays on land tax revenue and seeks consideration for exemptions under the Land Tax Assessment Act. The Treasurer's response indicates no prior consideration but acknowledges existing relief provisions and planned review.

AnsweredQoN 1281Legislative Council
Asked
17 September 2003
Portfolio
minister representing the Treasurer

QuestionView source ↗

I refer to the expected serious delays in building starts and completions as foreshadowed in recent media reports. (1) Has the Treasurer or his department considered the financial impacts of such delays on its revenue under the Land Tax Assessment Act 2002? (2) If yes, what is the estimated revenue in 2003, 2004, 2005; and, if not, why not? (3) Has consideration been given by the minister or the Commissioner for State Revenue to exempt under section 24(3) of the Act individuals who are likely to be caught up in this situation? (4) If yes to (3), what is the outcome; and, if not, why not? Hon NICK GRIFFITHS

AnswerView source ↗

I thank the member for some notice of this question. The Treasurer has provided the following response - (1) No. The land tax revenue forecast in the 2003-04 budget was based on moderation in residential building activity this financial year. To date, activity has been stronger than anticipated. Forecasts will be reviewed in the context of the midyear review, which will be published in December. The department analysed the information on activity to date as well as intelligence about likely activity for the remainder of this financial year and the forward estimates period. (2) The Land Tax Assessment Act provides relief from land tax if, at 30 June of an assessment year, a person owns two properties, one of which is occupied as the owner’s principal place of residence and the other property is land on which the owner’s new residence is to be constructed. The current provisions allow for a period of between 12 and 24 months for the second residence to be constructed and occupied, depending on the date of ownership of the second property. (3)-(4) Exemption under section 24 of the Land Tax Assessment Act is currently available to owners who meet the relevant conditions and make application to the commissioner.
(1) Has the Treasurer or his department considered the financial impacts of such delays on its revenue under the Land Tax Assessment Act 2002? (2) If yes, what is the estimated revenue in 2003, 2004, 2005; and, if not, why not? (3) Has consideration been given by the minister or the Commissioner for State Revenue to exempt under section 24(3) of the Act individuals who are likely to be caught up in this situation? (4) If yes to (3), what is the outcome; and, if not, why not? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The Treasurer has provided the following response - (1) No. The land tax revenue forecast in the 2003-04 budget was based on moderation in residential building activity this financial year. To date, activity has been stronger than anticipated. Forecasts will be reviewed in the context of the midyear review, which will be published in December. The department analysed the information on activity to date as well as intelligence about likely activity for the remainder of this financial year and the forward estimates period. (2) The Land Tax Assessment Act provides relief from land tax if, at 30 June of an assessment year, a person owns two properties, one of which is occupied as the owner’s principal place of residence and the other property is land on which the owner’s new residence is to be constructed. The current provisions allow for a period of between 12 and 24 months for the second residence to be constructed and occupied, depending on the date of ownership of the second property. (3)-(4) Exemption under section 24 of the Land Tax Assessment Act is currently available to owners who meet the relevant conditions and make application to the commissioner.
(2) If yes, what is the estimated revenue in 2003, 2004, 2005; and, if not, why not? (3) Has consideration been given by the minister or the Commissioner for State Revenue to exempt under section 24(3) of the Act individuals who are likely to be caught up in this situation? (4) If yes to (3), what is the outcome; and, if not, why not? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The Treasurer has provided the following response - (1) No. The land tax revenue forecast in the 2003-04 budget was based on moderation in residential building activity this financial year. To date, activity has been stronger than anticipated. Forecasts will be reviewed in the context of the midyear review, which will be published in December. The department analysed the information on activity to date as well as intelligence about likely activity for the remainder of this financial year and the forward estimates period. (2) The Land Tax Assessment Act provides relief from land tax if, at 30 June of an assessment year, a person owns two properties, one of which is occupied as the owner’s principal place of residence and the other property is land on which the owner’s new residence is to be constructed. The current provisions allow for a period of between 12 and 24 months for the second residence to be constructed and occupied, depending on the date of ownership of the second property. (3)-(4) Exemption under section 24 of the Land Tax Assessment Act is currently available to owners who meet the relevant conditions and make application to the commissioner.
(3) Has consideration been given by the minister or the Commissioner for State Revenue to exempt under section 24(3) of the Act individuals who are likely to be caught up in this situation? (4) If yes to (3), what is the outcome; and, if not, why not? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The Treasurer has provided the following response - (1) No. The land tax revenue forecast in the 2003-04 budget was based on moderation in residential building activity this financial year. To date, activity has been stronger than anticipated. Forecasts will be reviewed in the context of the midyear review, which will be published in December. The department analysed the information on activity to date as well as intelligence about likely activity for the remainder of this financial year and the forward estimates period. (2) The Land Tax Assessment Act provides relief from land tax if, at 30 June of an assessment year, a person owns two properties, one of which is occupied as the owner’s principal place of residence and the other property is land on which the owner’s new residence is to be constructed. The current provisions allow for a period of between 12 and 24 months for the second residence to be constructed and occupied, depending on the date of ownership of the second property. (3)-(4) Exemption under section 24 of the Land Tax Assessment Act is currently available to owners who meet the relevant conditions and make application to the commissioner.
(4) If yes to (3), what is the outcome; and, if not, why not? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The Treasurer has provided the following response - (1) No. The land tax revenue forecast in the 2003-04 budget was based on moderation in residential building activity this financial year. To date, activity has been stronger than anticipated. Forecasts will be reviewed in the context of the midyear review, which will be published in December. The department analysed the information on activity to date as well as intelligence about likely activity for the remainder of this financial year and the forward estimates period. (2) The Land Tax Assessment Act provides relief from land tax if, at 30 June of an assessment year, a person owns two properties, one of which is occupied as the owner’s principal place of residence and the other property is land on which the owner’s new residence is to be constructed. The current provisions allow for a period of between 12 and 24 months for the second residence to be constructed and occupied, depending on the date of ownership of the second property. (3)-(4) Exemption under section 24 of the Land Tax Assessment Act is currently available to owners who meet the relevant conditions and make application to the commissioner.
Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The Treasurer has provided the following response - (1) No. The land tax revenue forecast in the 2003-04 budget was based on moderation in residential building activity this financial year. To date, activity has been stronger than anticipated. Forecasts will be reviewed in the context of the midyear review, which will be published in December. The department analysed the information on activity to date as well as intelligence about likely activity for the remainder of this financial year and the forward estimates period. (2) The Land Tax Assessment Act provides relief from land tax if, at 30 June of an assessment year, a person owns two properties, one of which is occupied as the owner’s principal place of residence and the other property is land on which the owner’s new residence is to be constructed. The current provisions allow for a period of between 12 and 24 months for the second residence to be constructed and occupied, depending on the date of ownership of the second property. (3)-(4) Exemption under section 24 of the Land Tax Assessment Act is currently available to owners who meet the relevant conditions and make application to the commissioner.
I thank the member for some notice of this question. The Treasurer has provided the following response - (1) No. The land tax revenue forecast in the 2003-04 budget was based on moderation in residential building activity this financial year. To date, activity has been stronger than anticipated. Forecasts will be reviewed in the context of the midyear review, which will be published in December. The department analysed the information on activity to date as well as intelligence about likely activity for the remainder of this financial year and the forward estimates period. (2) The Land Tax Assessment Act provides relief from land tax if, at 30 June of an assessment year, a person owns two properties, one of which is occupied as the owner’s principal place of residence and the other property is land on which the owner’s new residence is to be constructed. The current provisions allow for a period of between 12 and 24 months for the second residence to be constructed and occupied, depending on the date of ownership of the second property. (3)-(4) Exemption under section 24 of the Land Tax Assessment Act is currently available to owners who meet the relevant conditions and make application to the commissioner.
The Treasurer has provided the following response - (1) No. The land tax revenue forecast in the 2003-04 budget was based on moderation in residential building activity this financial year. To date, activity has been stronger than anticipated. Forecasts will be reviewed in the context of the midyear review, which will be published in December. The department analysed the information on activity to date as well as intelligence about likely activity for the remainder of this financial year and the forward estimates period. (2) The Land Tax Assessment Act provides relief from land tax if, at 30 June of an assessment year, a person owns two properties, one of which is occupied as the owner’s principal place of residence and the other property is land on which the owner’s new residence is to be constructed. The current provisions allow for a period of between 12 and 24 months for the second residence to be constructed and occupied, depending on the date of ownership of the second property. (3)-(4) Exemption under section 24 of the Land Tax Assessment Act is currently available to owners who meet the relevant conditions and make application to the commissioner.
(1) No. The land tax revenue forecast in the 2003-04 budget was based on moderation in residential building activity this financial year. To date, activity has been stronger than anticipated. Forecasts will be reviewed in the context of the midyear review, which will be published in December. The department analysed the information on activity to date as well as intelligence about likely activity for the remainder of this financial year and the forward estimates period. (2) The Land Tax Assessment Act provides relief from land tax if, at 30 June of an assessment year, a person owns two properties, one of which is occupied as the owner’s principal place of residence and the other property is land on which the owner’s new residence is to be constructed. The current provisions allow for a period of between 12 and 24 months for the second residence to be constructed and occupied, depending on the date of ownership of the second property. (3)-(4) Exemption under section 24 of the Land Tax Assessment Act is currently available to owners who meet the relevant conditions and make application to the commissioner.
(2) The Land Tax Assessment Act provides relief from land tax if, at 30 June of an assessment year, a person owns two properties, one of which is occupied as the owner’s principal place of residence and the other property is land on which the owner’s new residence is to be constructed. The current provisions allow for a period of between 12 and 24 months for the second residence to be constructed and occupied, depending on the date of ownership of the second property. (3)-(4) Exemption under section 24 of the Land Tax Assessment Act is currently available to owners who meet the relevant conditions and make application to the commissioner.
(3)-(4) Exemption under section 24 of the Land Tax Assessment Act is currently available to owners who meet the relevant conditions and make application to the commissioner.

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