Stamp Duty Concession on Transfer of Family Farm

Is your family considering the transfer of the family farm to the next generation? If so, did you know there may be a stamp duty concession available?

Whether you are transferring or acquiring the family farming property, our experienced lawyers are here to make the process as smooth as possible.

With offices in Toowoomba, Warwick and Roma, we are committed to supporting rural families on the Darling Downs, South West Queensland and beyond.

Key Takeaways

Transfer duty, also known as stamp duty, may apply when property or business assets are transferred in Queensland.
Duty can still be payable even where a family farm or business is gifted or transferred for less than market value.
Queensland law may allow a transfer duty concession for some family business transfers, including primary production businesses.
If the concession applies, the duty payable may be reduced and, in some cases, no transfer duty may be payable.
The concession may also apply to land used to conduct the family business, including farming land used for primary production.
Eligibility depends on the family relationship between the transferor and transferee, so legal advice should be obtained before entering into an agreement.

What is stamp duty?

Transfer duty (also known as stamp duty) is a levy imposed by the Queensland Government on the transfer of property and businesses in Queensland. Transfer duty is payable regardless of whether the property or business is purchased for market value, or is a gift from a family member.

Generally, the buyer of the property or business would pay the transfer duty.

How is transfer duty calculated?

Generally, where the transfer of a family business occurs by way of gift from a family member (or at an under value), the transfer duty is calculated by reference to the market value of the assets being transferred.

The amount of transfer duty payable can be significant, as it depends on the value of the assets being transferred.

Are there any concessions?

The Duties Act 2001 (Qld) contains provisions for applying for a concession from transfer duty on the acquisition of certain businesses (including primary production) where certain family relationships exist between the buyer and seller. If eligible for a concession, you may be able to acquire the family property and/or business without having to pay the full amount of transfer duty.

In some cases, the concession may result in no transfer duty being payable.

What if the land being transferred is used for a family business?

If eligible for a transfer duty concession, the concession may also apply to the transfer of land which is used to conduct the business.

What type of family relationship must exist?

Certain family relationships must exist between the parties, in order for you to be eligible for a transfer duty concession.

In most cases, the seller must be a parent or a grandparent of the buyer, or a parent or grandparent of the buyer’s spouse.

In the case of a transfer involving a primary production business (including the transfer of land used to conduct a primary production business), the family relationship between the parties can include a transfer between a wider range of family members, such as a transfer from an aunt or uncle, or a transfer between siblings.

Please be aware that legislation may change the categories of family relationships that are eligible for a transfer duty concession. Before entering into any agreement to acquire or transfer a property or business from a family member, we recommend you seek legal advice regarding whether your relationship with the other party is a family relationship which is eligible for a concession.

Contact us

If you would like to discuss whether your proposed acquisition of a business from a family member is a transaction which would be eligible for a transfer duty concession, or for your agribusiness and succession planning issues generally, please contact us in either our Toowoomba, Roma or Warwick offices.

Frequently Asked Questions

What is transfer duty in Queensland?

Transfer duty, commonly called stamp duty, is a Queensland Government levy that can apply when property or business assets are transferred. It may apply whether the transfer is a sale, gift or transfer for less than market value.

Who usually pays transfer duty?

In most cases, the buyer or person acquiring the property or business is responsible for paying transfer duty.

How is duty calculated when a family farm is gifted?

Where a family business or farm is transferred as a gift or for less than full value, duty is generally calculated based on the market value of the assets being transferred.

Is there a stamp duty concession for transferring a family farm?

Yes, a concession may be available under Queensland law for the transfer of certain family businesses, including primary production businesses, where the required family relationship exists.

Can the concession apply to farmland as well as the business?

Yes. If eligible, the concession may apply to land used to conduct the family business, including land used for primary production.

Which family relationships may qualify for the concession?

In many cases, the seller must be a parent or grandparent of the buyer, or a parent or grandparent of the buyer’s spouse. For primary production businesses, the eligible family relationships may be broader and can include transfers involving siblings, aunts or uncles, depending on the circumstances.