Business Transfer Duty
One of the largest costs of purchasing or restructuring a business is that of stamp
duty. Stamp duty on the transfer of business assets is currently levied on business
asset transfers in Queensland, New South Wales, South Australia, Western Australia
and the Northern Territory. Business transfer duty is regulated autonomously by
each state and territory in Australia.

The assets which are generally the subject of business transfer duty, include, but are
not limited to, goodwill, plant and equipment, stock-in-trade, trade debts and
intellectual property. Please note, that not all the listed assets are subject to stamp
duty in each state that currently levies stamp duty on business asset transfers. For
example, stock-in-trade is only payable in Queensland and South Australia whilst
being exempt in the other mentioned states and territories.

As of 1 July 2012, stamp duty on business assets (other than land) will be abolished
in New South Wales.

It is forecasted that both South Australia and Western Australian will follow suit and
abolish stamp duty on the transfer of business assets (other than land) as of 1 July
2013. However, these dates are subject to change should the budget of either state
not be in a position to accommodate the abolition.

Queensland was set to abolish stamp duty on the transfer of business assets on and
from 1 July 2013 and the Northern Territory on and from 1 July 2012, however, both
dates have now been deferred until such time as each states budget can
accommodate the abolition.

The levels of stamp duty vary between each state and territory in Australia. When
considering purchasing, or restructuring, a business in Australia it is highly
recommended that you seek professional advice to ensure that you are aware of the
stamp duty implications of your proposed venture.

The team at Short Punch and Greatorix has vast and broad experience in not only
stamp duty but also business acquisitions, restructures and sales.

Should you require more information on any of the above please contact Short Punch
and Greatorix Lawyers.

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