Learn if land tax applies to your commercial property lease… and if so, how it is calculated.
(Duration 01:58 secs)
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Correction – it is common practice for land tax to be calculated on single ownership basis.
00:28 Is land tax usually included as outgoings?
00:40 How is land tax calculated?
01:15 An online land tax calculator to help you
Learn more about land tax from the department of finance
Hi, Anna Lynch here from Perth Commercial Property. Thought I’d have just a quick 30 second chat because I’ve received quite a few inquiries in the last couple of weeks all in relation to land tax.
Basically, people have been asking…
“does land tax apply to my commercial property lease and if so, how is it calculated”?
Firstly, it is very common practice for land tax to be included in the outgoings of both a standard commercial property lease and that of a retail lease.
Secondly, in terms of its application, it is common practice for a tenant to be charged land tax on a single ownership basis. This means, as an owner, if you are charging your tenant, you would ensure that the land tax applies only to that property and not because of a combination of a couple of properties.
For example, if on its own, your property would not attract land tax but if the fact that you have a couple of properties in together, brings it into the category of attracting land tax. You would not then on-charge your tenant for this.
In order to help you calculate land tax in a single ownership basis, the government of WA Department of Finance provides an online calculator whereby you can input the assessed value of a specific property for a particular year and it will tell you if on a stand-alone basis there is any land tax assessable.
You’ll find the link at the end of this video. That’s all for today. Any questions, be sure to give me a call. This is a commercial property update from Anna Lynch of Perth Commercial Property.
Click here to go the the Department of Finance land tax calculator