If you have a business involved in primary production, including water allocation, and are planning to transfer the business to a family member, you may be eligible for a concession under Section 105 of the Duties Act 2001.
If the concession is granted, the dutiable value – which is the price you paid for the property or its market value – of the business property is taken to be nil.
The dutiable value of residential land adjacent to the land that used to carry on the business may also be taken to be nil.
This could mean considerable savings for your family.
The concession applies if the following conditions are met:
- The transaction relates to dutiable property that is used, and will continue to be used, for the business of primary production (agriculture, pasturage or dairy farming)
- The person transferring the property, or directing the transaction, is a defined relative of the transferee, such as a spouse, child or parent.
- The business was carried on by the defined relative – either alone or with others.
- The business will continue to be carried on by the transferee – either alone or with others.
If you have a primary production business and are considering your succession planning, contact Cliffford Gouldson Lawyers to see if this concession could be available to you.