Amendments to the Land Tax Assessment Act 2002 will be introduced into Parliament to ensure people who own and occupy homes in residential parks are not disadvantaged by a change to the definition of a park home.
A residential park is a licensed caravan park containing long-stay sites on which relocatable homes, including park homes, can be placed.
In October 2018, the State Administrative Tribunal confirmed that a park home must be a vehicle.
This means residential parks and lifestyle villages with non-vehicle relocatable homes cannot be licensed as caravan parks and will not qualify for the caravan park land tax exemption.
The amendments will provide an exemption for sites in residential parks with owner-occupied relocatable homes and for common areas in these parks. As most relocatable homes are owner-occupied, a full exemption should apply to new parks and villages.
Currently, the caravan park exemption does not apply to permanent holiday accommodation options in a caravan park such as cabins and chalets.
A 100 per cent exemption will be extended to all land used in a caravan park for holiday accommodation if at least 75 per cent of the accommodation is caravan or camp sites. A partial exemption will apply to caravan and camp sites if these sites comprise less than 75 per cent.
Related common areas such as kitchen and shower facilities will also be fully or partly exempt depending on how much of the land is used for caravan and camp sites. This will not include value-adding facilities such as shops and restaurants.
The land tax exemptions are proposed to apply from the 2020-21 assessment year.
As stated by Finance Minister Ben Wyatt:
“The residents in residential parks and lifestyle villages are often older or on lower fixed incomes and use these homes as their place of residence.
“They need our protection to ensure that park owners cannot use a loophole to pass on additional costs.
“We are also extending the caravan park exemption to support these businesses and ensure all Western Australians can continue to experience traditional caravan and camping holidays in our State’s prime destinations.”
As stated by Local Government Minister David Templeman:
“Local councils across metropolitan and regional Western Australia are currently responsible for licensing caravan parks and approving park homes to be brought onto sites.
“We are committed to the ongoing review of any other associated regulatory issues related to this decision.”