Transfer Duty to be Abolished on 1 July 2016
The NSW Treasurer confirmed that transfer duty on the transfer of business assets will be abolished on 1 July 2016, along with transfer duty on the transfer of private company shares and mortgage duty.
You may think that you have heard this before (and you have) but certain New South Wales stamp duties will be abolished on 1 July 2016.
The Office of State Revenue has announced that a number of other duties are also due to be abolished from July 1 2016, including:
- Duty payable on transfers of marketable securities and commercial fishery shares;
- Duty payable on mortgages;
- Duty payable on transfers of statutory licences or permissions as well as gaming machine entitlements; and
- Duty payable on the transfer of business assets or a declaration of trust over business assets (other than land).
Any remaining mortgage duty will also be abolished from 1 July 2016 (mortgage duty does not currently apply to owner occupied or investment housing loans).
A range of anti-avoidance provisions will apply in the lead up period. For example, sales made after 30 June 2016 pursuant to an option granted before 1 July 2016, will remain dutiable.
We caution that, the proposed abolition of these duties has been deferred on three previous occasions and a State election is to be held next year and its outcome could impact the abolition timetable.
Stamp duty is often a significant transaction cost, with stamp duty of over $40,000 payable on a contract for the sale of business in NSW with a purchase price of 1 million dollars.
If you require assistance with a commercial and/or property matter, please contact our team on (02) 4940 2800 or firstname.lastname@example.org