Transferring business properties between family members in Australia comes with its own set of regulations and steps. Here's a concise guide to help you through the process:
Key Dates for Different Transferee Types:
For transactions entered into on or before 18 May 2022:- Duty exemption for primary production land transfers applies only if individual transferees are involved.
For transactions entered into on or after 19 May 2022:
- The duty exemption extends to include transferees such as trustees of various trusts, self-managed superannuation funds, and proprietary limited companies.
Essential Documents Required:
To facilitate the smooth transfer, ensure you have the following documents in order:
- Cover letter detailing transaction specifics.
- Agreement and/or transfer documentation.
- Application for Exemption – Transfer of Land used for Primary Production Between Family Members (ODA 071).
- Evidence confirming the land's prior use for primary production business.
- Completed Purchaser/Transferee Declaration form for each party involved.
- Duties Client Identification (CI) for each transferee.
- Relevant duties proof of status documents, especially if the property is residential-related.
For a Proprietary Limited Company:
- Memorandum and articles of association.
- Certified copy of the share register.
- Sealed probate containing the Will and list of inventory.
- Executed codicils or family provision orders (if applicable).
- Endorsed trust deed.
- Certified copy of the unit register.
- Any relevant deeds of variation/amendment.
- Endorsed trust deed.
- All relevant deeds of variation/amendment.
- Executed endorsed Bare Trust Deed or detailed explanation of trust arrangements.
- Any relevant deeds of variation/amendment.
- SMSF trust deed.
- Register of SMSF members.
- Any relevant deeds of variation/amendment.
Ensuring all necessary documents are in place streamlines the transfer process and helps avoid any potential delays or complications. For personalized guidance, consider consulting with a legal or financial professional.
Source: Duties Act evidentiary requirements: Section 274, Revenue NSW website
- Should you have any queries, please contact Tax Ideas Accountants & Advisers on
+61 2 83181545 - Alternatively, you can book an appointment in our live calendar.
