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    5. Family business concession

    Family business concession

    Find out how to apply for a concession to reduce the transfer (stamp) duty on transfers of family businesses.

    Topics on this page

      You may be eligible for a transfer (stamp) duty concession if you acquire business property from a family member with the intention of running that business.

      The concession is available for:

      • primary production businesses
      • prescribed businesses.

      Generally, you can’t claim a concession if you are acting as trustee or as an agent or nominee of another person.

      If you are a transfer duty self assessor, you can:

      Primary production

      For the purposes of this concession, a business of primary production is one of agriculture, pasturage or dairy farming. To be eligible for the concession, you must acquire the business property directly from a defined relative.
      Defined relative

      For the family business concession, a defined relative is your spouse or any of the following people related to you or your spouse:

      • a parent
      • a grandparent
      • a brother, sister, nephew or niece
      • a child or grandchild
      • an aunt or uncle
      • a first cousin (for transactions from 23 May 2017)
      • a non-blood-related first cousin (for transactions from 23 May 2018)
      • the spouse of any person mentioned above.

      The concession applies to all dutiable property
      Dutiable property

      Property that is involved in a dutiable transaction in Queensland.

      When you buy or sell dutiable property, you’re likely to pay duty. This can include:

      • land in Queensland
      • a transferable site area
      • an existing right
      • a Queensland business asset
      • a chattel in Queensland.

      Read section 10 of the Duties Act 2001 for more on property types.

       used for the business of primary production. The concession also applies to any residential land that is on or adjacent to the farm. If you qualify, you won’t have to pay transfer duty on:
      • the transfer, or agreement for the transfer, of business property
      • partnership acquisitions, if the partnership is a family partnership that holds business property
      • trust acquisitions, if the trust is a family trust that holds business property
      • trust creations, if the trust is a family trust that holds business property.

      The owner of a dairy farming business sells his farm to his niece and her husband. They will continue to operate the business. The transfer includes:

      • land used for dairy farming
      • a water entitlement
      • an adjacent parcel of land on which the owner currently resides—this will become his niece and her husband’s residence
      • a herd of 200 Guernsey cows
      • plant, machinery and equipment used for dairy farming.

      The concession applies to all of the above property because it is used for dairy farming and the transferees are defined relatives of the owner.

      Prescribed business

      To be eligible for the concession on a prescribed business
      Prescribed business

      A business solely involving an activity prescribed under Schedule 3 of the Duties Regulation 2013, such as:

      • excavating and earthmoving
      • picture framing
      • gunsmithing
      • locksmithing
      • manufacturing, processing and packaging
      • any of the following
        • beauty salon or barber shop
        • bus service
        • cinema
        • crematorium
        • engineering workshop
        • laundry or laundrette
        • newsagency, travel agency or real estate agency
        • repair and service workshop
        • rental business
        • restaurant or café
        • service station
        • sports complex or gymnasium
        • warehouse or bulk storage complex
      • undertaking or funeral directing
      • printing and publishing
      • boot and shoe repairing
      • retailing and wholesaling, whether or not it involves repairing or installing goods sold
      • upholstering.
       , you must acquire business property from your (or your spouse’s) parent or grandparent.

      The concession may apply to:

      • the transfer, or agreement for the transfer, of business property
      • partnership acquisitions, if the partnership is a family partnership that holds business property
      • trust acquisitions, if the trust is a family trust that holds business property
      • trust creations, if the trust is a family trust that holds business property.
      If 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 business property is more than 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.

       , the difference is treated as a gift. The concession applies to the first $500,000 of business property gifted since 12 December 1984. Transfer duty applies to the balance and any consideration payable.

      Use the transfer duty calculator or transfer duty rates to find out how much duty you may have to pay.

      Sarah gifts a 50% interest in a cinema business to her daughter, Amy. The transferred business property is valued at $300,000. The concession applies and no duty is payable.

      Ten years later, Sarah gifts her remaining interest in the business to Amy. The transferred business property is valued at $550,000. The concession applies to $500,000 for property gifted since 12 December 1984. Because Amy has previously received the concession to $300,000, she can only claim for $200,000 on the second transaction ($500,000–$300,000). Duty is payable on the remaining $350,000.

      How to claim the concession

      Use these tools to determine if the family business concession applies to your transaction:

      To claim the concession, you need to lodge:

      • the original documents (including any contracts, agreements or deeds of gift)
      • a family business concession (Form D2.5)
      • an identity details annexure for each non-Australian transferor and transferee, when transferring real property (e.g. homes, apartments, business premises and vacant land)
      • a valuation of the property (for prescribed business transfers only)
      • a covering letter outlining what documents you have lodged, your name and return address.

      If there is no written agreement or transfer form, also lodge a transfer duty statement (Form D2.3).

      We will send you an assessment notice that outlines how much duty you need to pay.

      Find out about lodging documents for assessment and stamping.

      Also consider…

      Read the public rulings on:

      Last updated: 13 November 2024