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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.

Section 105A of the Duties Act 2001 provides a concession for a transfer by gift of a prescribed family business.

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 dutiable property, 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.

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

How to lodge online

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

  • Select Transfer of business assets as the Transaction class.
  • In the Type of dutiable transaction drop-down list, select either:
    • Agreement to transfer dutiable property - for transactions evidenced by an agreement
    • Transfer of dutiable property - for transactions evidenced by a transfer only.
  • Select Queensland business asset as the Type of dutiable property from the drop-down list.
  • In Detailed description of property (other than land) enter:
    • information about the business assets being transferred
    • details of any documents that go with the main contract; for example, the transfer of a lease.
  • Select s.105A family business - prescribed from the Concession type drop-down list.
  • Answer the question: Is the consideration for this transaction less than the unencumbered value of the property included in this transaction? The answer will generally be Yes for a prescribed business concession. You must keep evidence of value of the business property.
  • Enter the unencumbered value of 100% interest in property, even if a partial interest is being acquired.
  • Enter the amount that is gifted in Extent to which the amount this transaction is made by way of gift.
    For example, if the value of the property is $600,000 and the transferee is paying $50,000, the extent it is made by way of gift is $550,000.
  • Answer No to the question: Is an exemption being claimed?

Non-Australian entity

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 email is automatically generated through OSR Online when the transaction is lodged, asking the transferor to complete an online identity details annexure. 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 OSR Online.

Records you need to keep

For this type of transaction, you must keep:

Find out more about your record-keeping requirements.

Public rulings

You may find the following public rulings useful when self assessing family business transactions:

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.