Consolidations and Restructures (NSW, QLD, WA and Vic)

MGS Private advises on the duty consequences in relation to consolidations and restructures in New South Wales (NSW), Queensland (QLD), Western Australia (WA), and Victoria (Vic):

1. New South Wales (NSW):
• Corporate Reconstruction / Consolidation Relief:
• Previously, there was a total exemption from duty for corporate reconstruction or consolidation transactions.
• Now, this exemption is replaced with a 90% concession.
• Internal restructures will become more complex, and comprehensive valuation evidence may be required for assets involved in corporate restructures.
• Similar to Victoria but with some differences, including no concession if the same asset is transferred multiple times.
• Effective for transactions occurring on or after 1 February 2024.
2. Queensland (QLD):
• Queensland has maintained a total exemption in relation to corporate consolidations transaction and corporate reconstructions transactions.
• Queensland does not treat unit trusts as corporate entities.
• Queensland Small business owners who restructure their business on or after 7 September 2020 by transferring assets from a sole trader, partnership or discretionary trust structure to a company structure may be eligible for either a full or partial duty exemption on the transfer.
3. Western Australia (WA):
• Western Australia has the most taxpayer friendly stamp duty jurisdiction for consolidations and restructures.
• Dutiable property can be moved in Western Australia without giving rise to a liability for duty.
4. Victoria (Vic):
• Corporate Reconstruction / Consolidation Relief:
• Similar to NSW, Vic also provides relief for corporate reconstruction or consolidation transactions.
• The approach includes a crediting provision to prevent double duty on the same asset during multiple-step restructures.
• Effective for transactions occurring on or after 1 February 2024.

Remember, these changes impact how businesses manage their internal restructures and tax implications. Seek professional advice for specific scenarios in each state! Contact MGS Private for assistance.