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Debt factoring agreements exemption (s. 149) toolkit

This toolkit brings together everything you need to know about self assessing transfers of book debts that are part of a debt factoring agreement.

Under section 149 of the Duties Act 2001, transfers of book debts are exempt if the transaction is part of a debt factoring agreement to provide finance to the transferor of the book debt. The purchaser is usually a finance company, bank or other financial institution.

The exemption will apply to transfers of book debts where:

  • the transferor of the debts seeks finance from the transferee
    and
  • the debt factoring agreement is entered into by the parties as part of a finance arrangement.

The exemption does not apply where the nature of the transaction is one of sale and purchase, such as a transfer of book debts that is part of a business sale, or the purchase of book debts.

If you believe this exemption will apply to a transaction you are dealing with, as a registered self assessor you must assess and lodge it through OSR Online.

Assessing a section 149 exemption

Here are some tips to help you assess this type of transaction in OSR Online.

How to lodge online

You must complete all mandatory data fields under each tab in OSR Online. Mandatory fields are marked with a red asterisk. There are some specific data requirements.

  • Answer Yes to the question: Is the consideration for this transaction less than the unencumbered value of the property included in this transaction?
  • Enter the unencumbered value of 100% interest in property if known; if unknown, enter $0.00 (nil).
  • Select Yes to the question: Is an exemption being claimed?
  • Select s.149 exemption debt factoring agreements from the Exemption type drop-down list.

Records you need to keep

For this type of transaction, you must keep:

Also consider...

Contact

Office of State Revenue
For transfer duty self assessment queries:

For queries on payroll tax, land tax and royalties:

  • call 1300 300 734 (Australia) or +61 7 3179 2500 (overseas)
  • send an email using our online enquiry form.