Buying a business

Buying a business 

When you buy a business in NSW, you must pay transfer duty if the sale includes land or an interest in land, such as a lease. 

If it does, you may also need to pay transfer duty on the assets used to operate the business, including  warehouse equipment and computers. 

Transfer duty is due three months after you sign the business sale agreement. 

Assets included 

A business is any activity you do regularly with the aim of making a profit. 

It does not need to be a company, corporation, partnership or have any formal organisation. It can be any size. Selling homemade jam at a local market each Sunday is a business. 

To work out the value of your business, include: 

1 land and property 

2 interest in land, such as a lease 

3 plant and equipment 

4 shares and units 

5 goods that are not stock-in-trade, under manufacture, or excluded from transfer duty. 

You may also need to pay a $10 transfer duty for any: 

1 sale of a business agreement 

2 duplicate sale of a business agreement 

3 transfer of lease 

4 transfer in conformity to the agreement. 

Read more about the assets you must pay transfer duty on in section 11 of the Duties Act 1997. 

Excluded assets 

Generally, you will not pay transfer duty on: 

1 goods that are stock-in-trade 

2 manufacturing materials, or anything under manufacture 

3 assets used on land for primary production 

4 livestock 

5 registered vehicles 

6 ships or vessels. 

The exception applies to assets that cannot be moved from the property.