Business assets toolkit
As a registered self assessor, you must use QRO Online to assess dutiable transactions involving Queensland business assets.
Business assets are any of the following:
- a statutory business licence
- a right to use a statutory business licence
- a business name
- a right under a franchise arrangement
- a debt of a business if the debtor lives in Queensland
- a supply right of a business
- intellectual property
- personal property in Queensland.
In certain cases, business assets are not dutiable unless they are included with transactions involving other types of dutiable property. Find out more about transfer duty on business assets.
Assessing transfers of business assets
Here are some tips to help you self assess this type of transaction in QRO Online.
How to lodge online
You must complete all mandatory data fields under each tab in QRO Online. Mandatory fields are marked with a red asterisk. There are some specific data requirements.
- Select Transfer of business assets as the Transaction class.
- Select the relevant transaction from the Type of dutiable transaction drop-down list.
- Select Queensland business asset as the Type of dutiable property.
- Complete the lot and plan details if you answer Yes to the question: Does this transaction include real property? (This does not apply for a transfer of lease.)
- If you answer No to the question: Does this transaction include real property? because land is not being transferred with the business, complete the detailed description with information about the business assets being transferred and details of any documents that go with the main contract, for example, the transfer of a lease or water allocation.
- Enter the value of the business goodwill and intellectual property. These amounts must be included as part of the consideration or unencumbered value. If GST is payable under the business contract as part of, or in addition to, the stated consideration, then you will assess duty on the total (including GST).
Stamping pursuant documents
If you need to assess a document that is pursuant to a business assets transfer, you must stamp the pursuant documents with the same transaction number as the agreement (once transfer duty has been paid on the agreement).
You do not need to endorse documents that are not pursuant to a transfer of business assets but are executed in conjunction with the business transaction (e.g. deeds of consent, or guarantees), because these documents do not attract duty.
Transactions including vehicle registrations
If a transfer of a vehicle is included in a business contract, you must self assess the business contract, then lodge the following documents with us so we can assess vehicle registration duty:
- a copy of the stamped business contract
- the vehicle registration transfer application, stating the value of the vehicle (if not stated in the business contract). If you have lodged the transfer application with the Department of Transport and Main Roads, provide a copy and a receipt of payment
- a covering letter outlining
- the documents you have lodged
- your name and return address
- the vehicle registration number
- the value of the vehicle and the number of cylinders.
If several vehicles are being transferred, it is helpful to provide a spreadsheet with the relevant details. We cross reference the details in the covering letter with the information on the transfer form.
The vehicle registration duty will be reduced by the amount of transfer duty that was paid for the vehicle as part of the business contract. There may still be some duty payable on the registration or transfer of the vehicle.
If the vehicle registration duty has already been paid, the credit will be applied to any outstanding duty on the business contract.
Refer to section 384 of the Duties Act 2001 for the reduction of vehicle registration duty.
Learn more about vehicle registration duty.
Gary enters into a contract for the sale of business assets including a motor vehicle. He lodges his vehicle registration transfer application with the Department of Transport and Main Roads. The vehicle has 4 cylinders and a value of $15,000. Vehicle registration duty is $450 without any reduction.
The purchase price under the business contract is $150,000. Gary pays transfer duty of $3,675 on the contract.
Gary lodges the above documents with Queensland Revenue Office for a refund of vehicle registration duty.
The transaction is reassessed and Gary receives a refund of $367.50.
The refund is calculated using the formula set out in section 384 of the Duties Act:
- Duty paid on business contract × Value of vehicle ÷ Dutiable value of business assets
- $3,675 × $15,000 ÷ $150,000 = $367.50
When a transaction includes real property, each transferor and transferee must declare whether they are a non-Australian entity.
A non-Australian transferor or transferee must complete an identity details annexure.
For transferors, an email is automatically generated through QRO Online when the transaction is lodged, asking the transferor to complete an online identity details annexure. Contact us for help if you cannot obtain the transferor’s email address.
Transferees must complete an identity details annexure and you must enter these details in QRO Online.
Records you need to keep
For this type of transaction, you must keep a completed dutiable transaction statement (Form D2.2) and a stamped copy of the business contract. If there is no business contract, you must keep a completed transfer duty statement (Form D2.3).
If the business is sold to a related or associated party, you must also keep:
- evidence of value of all assets of the business given by an independent person who is competent to assess their value
- a detailed valuation of goodwill by a practising accountant, supported by financial statements for the previous 3 years (where applicable).
You will otherwise need evidence of value for your records when:
- there is no stated consideration for the transaction
- the consideration cannot be determined when the liability for transfer duty arises.
For a transaction involving real property, you must keep the identity details annexure for each non-Australian transferee.
You may find the following public rulings useful when self assessing business asset transactions:
- Transfer duty on dutiable transactions subject to GST (DA011.1)
- Amounts payable by a purchaser under a special condition of an agreement which are in addition to the purchase price (DA012.1)
- Business assets—residence of a company (DA035.1).
- See the data entry standards for QRO Online.
- Refer to section 35 of the Duties Act 2001 for the definition of business assets.
- Read the transfer duty rates or use the transfer duty calculator to work out a duty liability.
- Get help with QRO Online.
- View the list of approved transactions for self assessors.