Family business concession - prescribed business (s. 105A) toolkit
This toolkit brings together everything you need to know about self assessing transfers of prescribed family businesses.
If granted, the concession applies to the first $500,000 of the total value of the property that has been gifted. The total value includes all gifts of property (used for the business) received by the transferee since 12 December 1984. Duty is then assessed on the portion of the gift that exceeds $500,000 and any consideration paid, including liabilities assumed (e.g. mortgage).
The concession applies:
- where the transaction relates to land primarily used for a prescribed business and any personal property used on or in relation to the land
- if the person transferring the property, or directing the transaction, is an ancestor of the transferee
- if the business was carried on by the ancestor (alone or with others) and will continue to be carried on by the transferee (alone or with others).
As a registered self assessor, if you determine that this concession applies and the transaction is a transfer or agreement to transfer, then the transaction should be self assessed. However, if a home concession is also being claimed, the transaction must be sent to the Office of State Revenue for assessment.
Assessing a section 105A concession
Use the family business concession (prescribed business) interactive help to determine if you should apply a family business concession to a transaction.
When a transaction includes real property, each transferor and transferee must declare whether they are a non-Australian entity.
A non-Australian transferor or transferee must complete an identity details annexure.
For transferors, an electronic annexure is generated through OSRconnect. Select the email option when entering the transferor's email address. Contact us for help if you cannot obtain the transferor's email address.
Transferees must complete an identity details annexure and you must enter these details in OSRconnect.
Records you need to keep
For this type of transaction, you must keep:
- copies of the documents including the agreement and transfer. For oral agreements, you must keep a completed transfer duty statement (Form D2.3)
- a completed claim for the family business concession (Form D2.5)
- evidence of value of the business property
- an identity details annexure for each non-Australian transferee, if the transaction involves real property.
Find out more about your record-keeping requirements.
You may find the following public rulings useful when self assessing family business transactions:
- Concession for dutiable transactions for particular family businesses - defined relative or descendant who is a minor (DA105.1)
- Guidelines for determining the existence of a business - family businesses (DA105.2).
- Read the list of activities for prescribed business in Schedule 3 of the Duties Regulation 2013.
- Read the transfer duty rates or use the transfer duty calculator to work out a duty liability.
- Get help using OSRconnect.
- View the list of approved transactions for self assessors.
- Read more about the family business concession.
- Last reviewed: 16 Jan 2019
- Last updated: 16 Jan 2019
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