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Stamp Duty Business Assets

Stamp Duty Business Assets

Stamp duty on business assets to be scrapped

Stamp Duty Business Assets

NSW stamp duty on business assets other than real property will be scrapped on 1 July 2016.

Those who have lobbied for its abolition argue that stamp duty is the tax that puts the greatest burden on living standards and distorts business decisions the most. This is believable when you consider that the purchase of a business in NSW of $1 million attracts stamp duty of over $40,000.

Being such a significant tax, it is easy to see why state governments are addicted to the proceeds. The abolition of this form of stamp duty has been deferred many times over the past few years. Perhaps it is not time to celebrate just yet!

With the abolition date approaching fast, it may be in your best interest to delay dutiable transactions until after 1 July if you can. There are anti-avoidance provisions in place. For example, sales made after 30 June 2016 as a result of the exercise of an option granted before 1 July will remain dutiable.

If the promised abolition does go ahead, NSW stamp duty will no longer be payable on:

  • Transfers of marketable securities. This includes shares in companies and units in unit trusts. “Land rich” duty may still apply.
  • Transfers of business assets. This includes goodwill and intellectual property linked with NSW.
  • Transfers of commercial fisheries shares.
  • Transfers of statutory licences and permissions and gaming machine entitlements.

Any remaining mortgage duty will also be abolished from 1 July 2016.

If you have any questions in relation to this matter please gives us a call on 49 336 888.

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