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Capital gains tax applies to a business sale in NSW. There are currently four small business concessions that could reduce your CGT payable. According to the ATO, these concessions currently include; 15-year exemption - if you have owned the business for at least 15 years and are over 55 years; Active Asset reduction - only pay tax on 50% of the capital gain; Retirement Exemption - if you are under 55 and place the money into a retirement fund; Rollover - deferring payment for two years whilst you purchase another business. It's important to engage an Accountant who will guide you through the process of selling a business and assess your tax obligations. These exemptions may change, and it's important to check the current requirements when you are selling a business. A helpful section on the ATO website outlines what happens when changing, selling or closing a business.
In New South Wales, there are currently over 3,000 businesses listed for sale on Bsale. Buying an existing business allows you to buy elements such as established systems, processes, client databases, distribution channels, branding and more. To find a business for sale in NSW, simply start typing New South Wales into the location and hit ‘Go’; you can then narrow it down by keyword, category or price. It's a good idea to save your search results and listings so you can easily find them later. Once you have found a suitable business, you can contact the seller via the form. They may request you complete an NDA to keep the business details confidential. You can then discuss the business further and conduct due diligence.
Selling a business in NSW can be done by the business owner or by engaging a licensed NSW business broker. It is important to have an exit strategy for your business to increase your chance of obtaining an optimum sale price for the business. Check out Bsale’s 6 Steps to prepare a business for sale; it will provide a check-list and a general step-by-step guide. There are licensed business brokers in NSW who can assist during the sale process and list your business on websites such as Bsale. Check out our ‘find a business broker’ section to find a broker to sell your particular business. Bsale offers advertising to business owners, brokers and franchise groups.
In NSW, all business brokers must be licensed to operate on your behalf. Fair Trading is the governing body that oversees the licensing of business brokers in NSW. A business broker’s license is referred to as; Class 2 Agent - Real Estate – Business Agent or Class 1 Agent - Real Estate - Business Broking. A certificate holder, known as an Assistant Agent, cannot enter into a sales agreement or an agency agreement. You can check a business brokers license here via Revenue NSW. You can search via name or ask the business broker for their license number.
State nomination is required for people looking to migrate to NSW on a business visa. NSW has business investment and migration visas available. Visa’s may be provisional, temporary or permanent. It is important to work with a business broker and migration lawyer to ensure you meet the eligibility requirements. Visas regularly change, so it is important to obtain professional advice.
Provisional Business and Investment Visas:
Subclass 188A - This visa is for those with business skills who want to establish, develop and manage a new or existing business in NSW;
Subclass 188B - This visa requires you to invest at least A$1.5 million in NSW Waratah bonds; Subclass 188C - This visa is for people who invest at least A$5 million in Australian investments that meet certain requirements and maintain investment activity in Australia;
Subclass 188E -A visa for undertaking complying entrepreneur activities in NSW on an ongoing basis.
Permanent Business Visa’s include:
Subclass 132 - Business Talent visa is for experienced business owners under the age of 55 with a successful business career to operate a new or existing business in NSW;
Subclass 892 - Business Owner visa is a visa that allows people who own and manage a business in Australia to stay in Australia indefinitely. The primary applicant must have a qualifying visa granted on a particular basis.
Subclass 888A - this visa allows you to continue to own and manage a business in NSW if it has been actively operating throughout the last two years;
Subclass 888C - This visa lets you continue your investment activities in Australia permanently.
Subclass 888E - A permanent visa that you continue your successful entrepreneurial activity in NSW if you reside in NSW;
Subclass 893 - A permanent resident visa for holders of a sponsored investor visa (subclass 165) who have held a designated investment of $750,000 AUD for four years;
Full details on current visa options can be found on the NSW Government Website.
‘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… Transfer duty is due three months after you sign the business sale agreement.’ Revenue NSW. The transfer duty, or sometimes known as stamp duty, can apply to assets used to run the business such as; equipment and computers. It can also apply to shares and property. There is a helpful Transfer Duty Calculator available by Revenue NSW that will help you estimate the amount of duty you need to pay to transfer a business in NSW. It's important to seek professional advice when buying a business, especially an accountant who will help you understand your tax obligations.
Bsale makes it easier for buyers to find a suitable business by searching via a specific suburb or region. In NSW, we have the following regions; Blue Mountains, Central Coast, Dubbo + Central West, Mid + North Coast, Tamworth + New England, Newcastle + Hunter, Wagga Wagga + Riverina, South Coast, Sydney, Broken Hill + Western, Wollongong + Illawarra. Search a particular region by simply typing the region name into the location field, and hit ‘Go’.