The Queensland 2011-12 Mid Year Fiscal and Economic Review delivered on 13 January included an announcement of the “deferral of the abolition of duty on the transfer of core business assets until the Budget can accommodate the abolition”.

Under The Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations (the GST Agreement) business asset duty was previously scheduled to be abolished in Queensland on 1 July 2013. The duty affects non-land assets. Other states have already abolished it.

For financial institutions the duty affects Queensland assets transferred under a merger, including loan securities.

Public Ruling DA000.8.1 provides ex gratia relief for the loan portfolio and any statutory liquidity requirement for ADI’s (including mutuals) in a business transfer transaction made under and in accordance with the Financial Sector (Business Transfer and Group Restructure) Act 1999 (Cwlth).

Bright Law can advise you on the state duty implications of financial institution mergers throughout Australia.