When you buy a business in NSW, you must pay transfer duty if the sale includes land or an interest in land, such as a lease.
If it does, you may also need to pay transfer duty on the assets used to operate the business, including warehouse equipment and computers.
Transfer duty is due three months after you sign the business sale agreement.
A business is any activity you do regularly/ with the aim of making a profit.
It does not need to be a company, corporation, partnership or have any formal organisation. It can be any size. Selling homemade jam at a local market each Sunday is a business.
To work out the value of your business, include:
You may also need to pay a $10 transfer duty for any:
Read more about the assets you must pay transfer duty on in section 11 of the Duties Act 1997.
Generally, you will not pay transfer duty on:
The exception applies to assets that cannot be moved from the property.
From 30 June 2016, you also no longer have to pay transfer duty on:
You must pay transfer duty on these assets if your agreement is replacing one made before 1 July 2016 for the same business property and assets.
You do not pay transfer duty if goods, rather than land or an interest in land, make up more than 90 per cent of the value of the sale.
Transfer duty is calculated as though it's one transaction when land and business goods are sold under different agreements, but as part of the same arrangement, including:
The buyers and sellers do not need to be the same parties on each agreement for it to be the same arrangement.
When you buy a business, the assets not liable for transfer duty include:
Liable assets include:
You must pay transfer duty on the value of your property, plus the value of your plant and equipment:
The easiest way to work out how much transfer duty you'll need to pay is by using our online calculator.
Contact us for more information on buying a business and paying transfer duty.