Transfer duty exemption for QLD small business restructures

The QLD Commissioner of State Revenue released a Public Ruling on 9 October 2020 that exempts certain small business restructures from duty. 
 
The eligibility criteria include: 
  • The restructure occurred on or after 7 September 2020.
  • Entity must be a “small business entity” as follows:
    • an individual, partnership or discretionary trust
    • that directly holds “small business property” and
    • carries on a business; and
    • has an annual turnover not more than $5m.
  • The rollover is for “small business property” being “dutiable property” actively used by a small business entity to carry on the small business entity’s business.
  • The dutiable value of the small business property is not more than $10m.
  • The small business property is transferred from an individual, partnership or discretionary trust into a dormant or newly incorporated unlisted company with the original owners being the shareholders. 
We note that private residences are excluded from the exemption and there is also a partial rollover available where the businesses ownership structure is changed.
 
This ruling provides an opportunity to look at the structure of your business and consider whether a company structure is preferred.  If so, then this duty exemption along with other tax concessions (small business capital gains tax (‘CGT’) concessions, income tax rollovers, GST exemptions etc.) may be used to achieve this outcome without incurring expensive tax liabilities.
 
If you would like to discuss this further and how it can benefit your individual circumstances, please contact your Moore Australia advisor