Duty on the transfer of business assets or a declaration of trust over ‘business assets’ (other than land) will be abolished from 1 July 2016.
This duty is a signifigant transaction cost and can prevent a transaction; see the below example.
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.
Example: Stamp duty on a $2m business sale will be $95,490.
Duty is applied on the following transactions:
a sale or transfer of land, including improvements in New South Wales (NSW)
a sale or transfer of business assets in NSW
a declaration of trust over dutiable property in NSW.