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):
- 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.
- 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.
- 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.
- 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.
