Stamp Duty on Transfer of a Business
NOTE
Announcement by the Treasurer on 18 December 2008
As part of the Government’s commitment under the Inter-Governmental Agreement on the Reform of
Commonwealth-State Financial Relations (IGA), stamp duty on non-real property transfers and unlisted
marketable securities was to be abolished by 1 July 2010.
The Treasurer announced that South Australia will be deferring the abolition of stamp duty on non-real
property transfers and unlisted marketable securities until 1 July 2012.
Please see Circular 255 for details of changes to Stamp Duty announced in the State Budget 2005-2006.
Stamp duty is charged on either the market value or consideration, whichever is the greater when there is:
- a transfer of a business;
- a transfer of an interest in a business;
- a transfer of a partnership;
- a transfer of an interest in a partnership;
- an admission or retirement of a partner in a partnership; or
- a dissolution of a partnership.
The transaction may also include the sale of goodwill, stock or a motor vehicle and as such these assets, as well as any other assets located in South Australia, form part of the consideration upon which stamp duty is paid.
If the business or partnership includes assets located outside South Australia, these assets are not included when determining the stamp duty chargeable on the transaction.
What is required?
A written contract containing the terms and conditions of the transaction is usually executed by the parties (ie. vendor and purchaser) and this document must be stamped. Usually it is the purchaser of the business who pays the appropriate stamp duty.
If there is no written contract then a statement and statutory declaration pursuant to section 71E of the Stamp Duties Act 1923 must be completed by the purchaser with all relevant details of the transaction. This statement assumes the status of a contract and is subject to stamp duty in the same manner as that of a fully executed contract. These forms can be obtained from RevenueSA or downloaded from our forms page.
If the transfer of business or partnership relates to, or includes, the transfer of a gaming machine business, including the transfer of any underlying or indirect interest in a gaming machine business, then the gaming machine surcharge may apply. Refer to Commissioner's Circular No. 235 for more information.
Refer to the Stamp Duty Document Guide Note for details regarding whether your document can be stamped via RevNet by an authorised RevNet user or must be submitted to RevenueSA with a completed Opinion form (this form can be obtained from RevenueSA).
Rate of Stamp Duty
Stamp duty on a conveyance of business or partnership, where the contract is dated after 11 July 2002 (date of State Budget) and is stamped on or after 5 September 2002 (date of assent), is charged as follows:
| Value of the Property | Amount of Duty |
|---|---|
| Does not exceed $12,000 | $1.00 for every $100 or part of $100 |
| Exceeds $12,000 but not $30,000 | $120 plus $2.00 for every $100 or part of $100 over $12,000 |
| Exceeds $30,000 but not $50,000 | $480 plus $3.00 for every $100 or part of $100 over $30,000 |
| Exceeds $50,000 but not $100,000 | $1,080 plus $3.50 for every $100 or part of $100 over $50,000 |
| Exceeds $100,000 but not $200,000 | $2,830 plus $4.00 for every $100 or part of $100 over $100,000 |
| Exceeds $200,000 but not $250,000 | $6,830 plus $4.25 for every $100 or part of $100 over $200,000 |
| Exceeds $250,000 but not $300,000 | $8,955 plus $4.75 for every $100 or part of $100 over $250,000 |
| Exceeds $300,000 but not $500,000 | $11,330 plus $5.00 for every $100 or part of $100 over $300,000 |
| Exceeds $500,000 | $21,330 plus $5.50 for every $100 or part of $100 over $500,000 |
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This page was last reviewed 14 April, 2011
