Family business concession - prescribed business (s. 105A) procedure

Follow this procedure to help you lodge a section 105A family business (prescribed business) concession using OSRconnect.

Use our interactive help first to see if this concession applies to your transaction. Read our family business concession (prescribed business) toolkit for more information.

Note: The fields marked with an asterisk (*) are mandatory.

On the Lodgement Obligations tab:

  1. Select Transfer Duty from the Create return/transaction drop-down list.
  2. Select Create to start the transaction.
  1. You can enter your own reference (optional).
  2. Select Transfer of business assets as the Transaction class.
  3. 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.
  4. Select Queensland business asset as the Type of dutiable property from the drop-down list.
  5. Enter the Transaction/Document date using the calendar or text field (dd/mm/yyyy).
  6. For agreements, enter the Unconditional date - the date when the last allowable contract condition was satisfied (if applicable).
    Read the public ruling on extension of time to lodge certain agreements (DA019.1) for more information.
  7. Answer the question (if applicable): Does this transaction also include a transfer(s) assessed under section 22? (Form 1 pursuant transfer)
  8. Answer the question (if applicable): Has duty been previously paid on this agreement?
    If the answer is Yes, complete the remaining questions.
  9. Click Next.

The Property section will display first. Make sure you complete this stage following our data entry standards.

  1. In the Detailed description of property (other than land) field, 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 or a water allocation.
  2. Enter the value of business goodwill and intellectual property. These amounts must be included as part of the consideration or unencumbered value.

Complete the Lot and Plan fields if the business sale includes a transfer of real property.

  1. Answer the question: Does this transaction include real property?
    If Yes, complete the remaining questions.
  2. Select Transferors from the Document details list.
  3. Select the Transferor type from the drop‐down list.
  4. Complete the transferor details.
  5. If the transaction includes real property, answer the question: Is the transferor a non-Australian entity?
    If Yes, an identity details annexure is required.
  6. Click Add to register these details.
  7. Select Email next to the non-Australian transferor’s name. If you are unable to obtain the email address for the transferor, contact the Office of State Revenue immediately.

To add more transferors, repeat steps 16 to 20.

  1. Select Transferees from the Document details list.
  2. Answer the question: Are any of the transferor/s and transferee/s related?
    The answer will be Yes for a family business concession.
  3. Select the Transferee type from the drop‐down list.
  4. Enter the transferee details.

You need to enter an ABN, ACN or ARBN for a company, and a date of birth for an individual.

  1. Enter the Interest acquired by the transferee as a fraction.
  2. Select the Concession type as s. 105A family business - prescribed from the drop-down list.
  3. Complete the transferee address details.
  4. If the transaction includes real property, answer the question: Is the transferee a non-Australian entity?
    If Yes, the non-Australian transferee must complete an identity details annexure and these details must be recorded in OSRconnect.
  5. Click Add to register these details.

To add more transferees, repeat steps 23 to 29.

  1. Click Next.
  1. Answer the question: Is the consideration less than the unencumbered value?
    The answer will generally be Yes for a perscribed business concession. You must keep evidence of value of the business property as part of your record keeping requirements.
  2. Enter the Unencumbered value of ENTIRE property, even if a partial interest is being acquired.
  3. Enter the 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.
  4. Answer No to the question: Is an exemption being claimed?
  5. Answer the question: Does this transaction form part of an arrangement that includes other dutiable transactions (Section 30)?
    If Yes, complete the remaining questions.
  6. Click Next.

The amount of duty payable is displayed, with interest (if applicable).

  1. Click Save to validate your data. The status message advises of any errors in the form.

A transaction number is created, and the transaction is saved in draft. (The transaction number will be displayed in a pop-up box that you can then close by clicking the X button.)

  1. Click Summary
  2. Click Print for a hard copy.
  3. Click the X to close the summary.
  4. Click Next.
  1. Enter your Name and Contact details.
  2. Check the box to complete your acknowledgement.
  3. Click either:
    • Submit to lodge the transaction - you can then view this by using the Filter & Search function in the Lodgement or Payment Obligations tab.
    • Save to save this transaction as draft (click the X to close) - you can then view this in Lodgement Obligations. You must lodge (submit) the transaction within 30 days of the liability date to avoid unpaid tax interest (UTI).

Transactions with a liability amount owing must be paid within 14 days of being lodged.

If UTI was owed at the time of lodgement, it will continue to accrue until the outstanding amount is paid.