Duty abolished as at 1 July 2016
A much anticipated change this coming financial year is set to be the abolition of duty on the transfer of business assets or a declaration of trust over ‘business assets’ (other than land). This change will be effective as at 1 July 2016.
NSW is abolishing many duties and charges to make the State a better and less complex jurisdiction to do business in. Most other States have already abolished similar duties and charges. Duties like this have long been seen as inefficient taxes on business and investors.
What this means for you:
From 1 July 2016 NSW stamp duty will no longer be payable on:
- transfers of marketable securities – including shares in private companies and units in unit trusts (land rich duty may still apply)
- transfers of business assets including goodwill and intellectual property and plant and equipment when part of a transaction which includes goodwill (commonly seen as a ‘sale of business’)
- transfers of commercial fisheries shares
- transfers of statutory licences and permissions (including taxi and liquor licences) and gaming machine entitlements
If you would like to discuss how this change might affect you or your business, give us a call today on (02) 42292211.