Calculating transfer duty on business asset transfers

To calculate transfer duty when you enter into an agreement to transfer business assets, apply the transfer duty rates to the dutiable value of the agreement—the greater of the value of the business assets or the consideration paid.

Vehicle registration duty rates apply to the value of any vehicle that may be transferred as part of the agreement. You will receive a credit for any duty paid on the business agreement for any motor vehicles included in the agreement.

If GST is payable, duty must be calculated on the GST-inclusive amount. Read the public ruling about dutiable transactions subject to GST (DA011.1) for more information.

You can use the transfer duty estimator to work out a duty liability.

Exemptions and concessions

You may be able to claim 1 or more of the following when business assets are transferred:

• business exemption
• family business concession
• vehicle registration duty exemption.

Business exemptions

Even though the following transactions are exempt from duty, they must still be stamped. To claim an exemption, you will need to complete a dutiable transaction statement (Form D.2.2) and lodge it with your other documents.

Find out more about lodging documents for a business assets transfer.

Marketable securities

Under section 148 of the Duties Act 2001, we will not charge duty on transfers of:

• corporate debt securities
• transfers of stock, debentures or bonds of an authority established under a state Act (or an Act of another state).

Debt factoring agreements

Under section 149 of the Duties Act, we will not charge duty on transfers of business assets that are book debts, if the transfer forms part of a debt factoring agreement between the parties.

A debt factoring agreement is an agreement to purchase, acquire or factor a book debt to provide finance to the person transferring the book debt.

Also consider…

• Read the public ruling on amounts payable by a purchaser under a special condition of an agreement (DA012.1).
• Refer to section 35 of the Duties Act for the definition of business assets.
• Find out about other transfer duty exemptions.