Sales of business

​​​​​​​​​Many businesses hold assets which fall under the classification of ‘goods’ for the purpose of the ​Duties Act 2001 (the Act). For example, assets such as plant and equipment are considered goods. 

Goods transferred by themselves are not dutiable.  However, goods are subject to duty if they are transferred in an arrangement that includes other dutiable property such as: 

  • a freehold interest in land or a mineral tenement; or  
  • where the transfer of business assets is conditional on the granting of a new lease over business premises.

Where a business is sold together with a lease for the business premises, the lease is an interest in land, and is defined as dutiable property under section 9(l) of the Act. Therefore, any goods transferred as part of an arrangement, which includes a lease (or any other dutiable property), will also be subject to duty.​

Disregard value of goods​​​

On 7 December 2011, section 24 of the Duties Act 2001 was introduced to give the Commissioner of State Revenue the discretion to disregard the value of dutiable goods when determining the dutiable value of a transaction that consists of a grant, surrender of transfer of a lease of commercial property.

The value of dutiable goods may be disregarded (see section 24 of the Act) if the transaction consists of a grant, surrender or transfer of a lease of commercial real property that is to be used for business purposes, and:

  • the value of dutiable goods is 90 per cent or more of the total dutiable value; and
  • the dutiable goods will be used predominantly for business use; and
  • the dutiable goods will be used predominately on or at the leased premises; and
  • the dutiable transaction was not structured for reducing or avoiding the payment of duty.

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How to apply ​

​The documentation and evidence required to be submitted when lodging a transaction for assessment are:​​​​​

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​​​To submit by mail, you will need:

  • ​Completed forms, including:
  • Original executed and dated transfer, assignment of lease or grant of lease instrument.
  • A copy (or the original) of the agreement for sale (if no agreement, notification in writing that no agreement was entered into).
  • Apportionment of the consideration between the dutiable and no-dutiable property, including:
    • the value of motor vehicles(s) (if any) and evidence of duty paid on the transfer of registration;
    • the value of site goodwill (if any relevant to Tasmanian real property);
    • the value of plant and equipment supported by a depreciation schedule.
  • Evidence of dutiable value where appropriate.

To submit via Tasmanian Revenue Online, you will need:

  • Original executed and dated transfer, assignment of lease or grant of lease instrument.
  • A copy (or the original) of the agreement for sale (if no agreement, notification in writing that no agreement was entered into).
  • Apportionment of the consideration between the dutiable and no-dutiable property, including:
    • the value of motor vehicles(s) (if any) and evidence of duty paid on the transfer of registration;
    • the value of site goodwill (if any relevant to Tasmanian real property);
    • the value of plant and equipment supported by a depreciation schedule.
  • Evidence of dutiable value where appropriate.​​​



Additional information

For additional information, refer to:​

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