Stamp Duty to be Abolished on NSW Business Assets

NSW Stamp Duty Update

 

 You may think you’ve seen this before (and you have) but New South Wales stamp duty on business assets other than real property is to be abolished from 1 July 2016.

 

From that date NSW stamp duty will not apply to:

  • Transfers of marketable securities (ie shares in companies and units in unit trusts). Note that “land rich” duty may still apply 
  • Transfer of commercial fisheries shares
  • Transfers of business assets (eg goodwill and intellectual property connected with NSW)
  •  Transfers of statutory licences or permissions and gaming machine entitlements


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, to the best of our recollection, the proposed abolition of these duties has been deferred on three previous occasions. We also note that a State election is to be held next year and its outcome could impact the abolition timetable.