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    Selling a business: LEGALITIES AND TAX

    Prior to selling you should discuss the sale of your business with your lawyer and also your accountant and financial advisor about the following:

    • The Contract of Sale
    • CGT:  Capital Gains Tax and CGT concessions for small business
    • GST:  Goods and Services Tax and GST credits
      The ATO website has information on taxes applicable when selling.
    • Transfer of leases.
    • Insurance currency; insurance against being sued by new purchaser; insurance refunds
    • Check implications for selling to overseas purchasers
    • That the new owner will be responsible for obtaining licenses and permits.
    • Finalising tax returns, activity statements and installment notices.
    • Cancelling your ABN and transferring or cancelling your business name.

    Useful tip: Remember to notify Australia Post of your new personal address so that your mail does not go to the new business owner. 

    Deal with legal matters and tax implications of the sale

    Consider any insurance requirements for your business, such as run-off cover (where you are insured for any legal claims that are made after you sell your business).

    Also consider whether Capital Gains Tax (CGT) and Goods & Services Tax (GST) applies to the sale of your business. For example, if your business is registered for GST, you may need to include GST in the price of individual business assets or repay GST credits.

    If you are selling a small business, CGT concessions may be available.

    If you cannot pay your taxes on time, you may be able to get help through an ATO payment plan.

    Find out more about taxes when selling your business on the ATO website.

    Transfer your business to the new owner

    Once your business is sold, you'll need to transfer your business to the new owner. This includes:

    • transferring leases, licenses and permits
    • finalising tax returns, activity statements and instalment notices
    • cancelling your ABN and transferring or cancelling your business name.


    Find out more about what you need to do when changing ownership of your business.

    About directory

    Jobstar Commercial helps business owners who wish to sell a business. Advertise your business with us and let us help you find the right buyer for your business.