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Family business concession—prescribed business (s.105A)

Family business concession—prescribed business (s.105A) interactive help

Use this family business concession (prescribed business) interactive help to determine if you should apply the concession to a transaction.

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Definitions

Under section 105A of the Duties Act 2001, a concession is available for the transfer of assets used in certain businesses from an ancestor of the transferee.

An ancestor is the transferee’s or their spouse’s parent or grandparent, or the spouse of the parent or grandparent.

Answer the following questions to determine if you are eligible for a concession on a transfer or an agreement for transfer.

Is the business one of the following?

Excavating and earthmoving
Framing pictures
Gunsmithing
Locksmithing
Manufacturing, processing and packaging
Beauty salon or barber shop
Bus service
Cinema
Crematorium
Engineering workshop
Laundry or laundrette
Newsagency, travel agency or real estate agency
Repair or service workshop
Rental business
Restaurant or café
Service station
Sports complex or gymnasium
Warehouse or bulk storage complex
Undertaker or funeral director
Printing and publishing
Repairing boots and shoes
Retailing and wholesaling
Upholstering
None of the above

Is the business property being given wholly or partly as a gift?

What is the relationship of the transferor (or person directing the transfer) to the transferee or the transferee's spouse?

Spouse

Transfer duty

A person who is:

married
a de facto partner (who has lived and is living with the other person on a genuine domestic basis for 2 years or more, regardless of gender)
a civil partner (under the Civil Partnerships Act 2011)

Parent or their spouse
Grandparent or their spouse
Neither of the above

Is the transferee acquiring the business property as trustee?

Is the beneficiary of the trust a minor who is a descendant of the person creating the trust?

Are there other beneficiaries of the trust, other than a person who would become a beneficiary on the death of the minor?

Was the business being carried out by the ancestor (alone or with others)?

Ancestor

A person’s or their spouse’s parent or grandparent, or the spouse of the parent or grandparent

Will the business be carried on by the transferee (alone or with others)?

Does the unencumbered value of the business property exceed $500,000?

Unencumbered value

Transfer duty

The value of the property being transferred disregarding any encumbrance; for example, money owed under a mortgage.

See section 14 of the Duties Act 2001 for a full definition.

The value of the business property includes the total of any gifts of property (used for the business) received by the transferee since 12 December 1984.

No concession

Based on the information that you have provided, a family business concession will not apply.

If the business involves agriculture, pasturage or dairy farming, you may still be able to claim a concession. Read the family business (primary production) toolkit to find out more.

Next steps

Duty must be assessed on the higher of the consideration

Consideration

Transfer duty

Generally, the Australian dollar value paid for property in property transfers. Consideration includes monetary and non-monetary payments, such as assumption of liabilities. See section 12 of the Duties Act 2001 for a full definition.

or the unencumbered value

Unencumbered value

Transfer duty

The value of the property being transferred disregarding any encumbrance; for example, money owed under a mortgage.

See section 14 of the Duties Act 2001 for a full definition.

of the dutiable property. The transfer duty rates will apply.

For audit purposes, you must keep:

a copy of the stamped transaction
your completed dutiable transaction statement (Form D2.2)
an identity details annexure (if applicable)
evidence of value.

You must keep all records for 5 years in accordance with section 118 of the Taxation Administration Act 2001.

Your file reference:

Client name:

Transaction number:

Name:

Date:

No concession

Based on the information that you have provided, a family business concession will not apply.

The concession only applies to transactions where the consideration

Consideration

Transfer duty

Generally, the Australian dollar value paid for property in property transfers.

Consideration includes monetary and non-monetary payments, such as assumption of liabilities.

See section 12 of the Duties Act 2001 for a full definition.

is less than the unencumbered value.

Next steps

Duty must be assessed on the higher of the consideration or the unencumbered value

Unencumbered value

Transfer duty

The value of the property being transferred disregarding any encumbrance; for example, money owed under a mortgage.

See section 14 of the Duties Act 2001 for a full definition.

of the dutiable property. The transfer duty rates will apply.

For audit purposes, you must keep:

a copy of the stamped transaction
your completed dutiable transaction statement (Form D2.2)
an identity details annexure (if applicable)
evidence of value.

You must keep all records for 5 years in accordance with section 118 of the Taxation Administration Act 2001.

Your file reference:

Client name:

Transaction number:

Name:

Date:

No concession

Based on the information that you have provided, a family business concession will not apply.

The concession is only available where the transferor (or person directing the transaction) is an ancestor of the transferee.

Next step

Duty must be assessed on the higher of the consideration

Consideration

Transfer duty

Generally, the Australian dollar value paid for property in property transfers.

Consideration includes monetary and non-monetary payments, such as assumption of liabilities.

See section 12 of the Duties Act 2001 for a full definition.

or the unencumbered value

Unencumbered value

Transfer duty

The value of the property being transferred disregarding any encumbrance; for example, money owed under a mortgage.

See section 14 of the Duties Act 2001 for a full definition.

of the dutiable property. The transfer duty rates will apply.

For audit purposes, you must keep:

a copy of the stamped transaction
your completed dutiable transaction statement (Form D2.2)
an identity details annexure (if applicable)
evidence of value.

You must keep all records for 5 years in accordance with section 118 of the Taxation Administration Act 2001.

Your file reference:

Client name:

Transaction number:

Name:

Date:

No concession

Based on the information that you have provided, a family business concession will not apply.

Next steps

Duty must be assessed on the higher of the consideration

Consideration

Transfer duty

Generally, the Australian dollar value paid for property in property transfers.

Consideration includes monetary and non-monetary payments, such as assumption of liabilities.

See section 12 of the Duties Act 2001 for a full definition.

or the unencumbered value

Unencumbered value

Transfer duty

The value of the property being transferred disregarding any encumbrance; for example, money owed under a mortgage.

See section 14 of the Duties Act 2001 for a full definition.

of the dutiable property. The transfer duty rates will apply.

For audit purposes, you must keep:

a copy of the stamped transaction
your completed dutiable transaction statement (Form D2.2)
an identity details annexure (if applicable)
evidence of value.

You must keep all records for 5 years in accordance with section 118 of the Taxation Administration Act 2001.

Your file reference:

Client name:

Transaction number:

Name:

Date:

No concession

Based on the information that you have provided, a family business concession will not apply.

The concession is only available where the business was carried on by an ancestor

Ancestor

A person’s or their spouse’s parent or grandparent, or the spouse of the parent or grandparent

before the transfer and will be carried on by the transferee after the transfer.

Next steps

Duty must be assessed on the higher of the consideration

Consideration

Transfer duty

Generally, the Australian dollar value paid for property in property transfers.

Consideration includes monetary and non-monetary payments, such as assumption of liabilities.

See section 12 of the Duties Act 2001 for a full definition.

or the unencumbered value

Unencumbered value

Transfer duty

The value of the property being transferred disregarding any encumbrance; for example, money owed under a mortgage.

See section 14 of the Duties Act 2001 for a full definition.

of the dutiable property. The transfer duty rates will apply.

For audit purposes, you must keep:

a copy of the stamped transaction
your completed dutiable transaction statement (Form D2.2)
an identity details annexure (if applicable)
evidence of value.

You must keep all records for 5 years in accordance with section 118 of the Taxation Administration Act 2001.

Your file reference:

Client name:

Transaction number:

Name:

Date:

Family business concession

Based on the information that you have provided, a family business concession will apply.

Note that duty must still be calculated on the portion of the value that exceeds $500,000 and any consideration paid.

Consideration

Transfer duty

Generally, the Australian dollar value paid for property in property transfers.

Consideration includes monetary and non-monetary payments, such as assumption of liabilities.

See section 12 of the Duties Act 2001 for a full definition.

Next steps

For audit purposes, you must keep:

your completed claim for the family business concession (Form D2.5)
an identity details annexure (if applicable)
copies of the agreement and transfer
evidence of value of the business property.

You must keep all records for 5 years in accordance with section 118 of the Taxation Administration Act 2001.

Your file reference:

Client name:

Transaction number:

Name:

Date:

Family business concession

Based on the information that you have provided, a family business concession will apply.

Note that duty must still be calculated on any consideration

Consideration

Transfer duty

Generally, the Australian dollar value paid for property in property transfers.

Consideration includes monetary and non-monetary payments, such as assumption of liabilities.

See section 12 of the Duties Act 2001 for a full definition.

paid (including any liabilities assumed).

Next step

For audit purposes, you must keep:

your completed claim for the family business concession (Form D2.5)
an identity details annexure (if applicable)
copies of the agreement and transfer
evidence of value of the business property.

You must keep all records for 5 years in accordance with section 118 of the Taxation Administration Act 2001.

Your file reference:

Client name:

Transaction number:

Name:

Date:

Last updated: 29 November 2024

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Transfer duty
Self assessors
Businesses, trusts and investors
Insurance duty
Vehicle registration duty
Private rulings for duties
Public rulings and practice directions
Payment options
Definitions