WESTERN Australian Government moves to accelerate the collection of stamp duty on the sale of businesses from July 1 is going to put an onerous strain on small business operators.
A Perth business group has called for the Government to reconsider its intention to collect stamp duty within 90 days of signing a business sale contract, instead of 180 days as previously.
Melville Cockburn Chamber of Commerce president Bill Munro said this placed a financial burden on the buyer who would have to personally fund or find the money to cover the cost up-front.
On a purchase price of $250,000 the buyer has to find an extra $10,000 for stamp duty within the 90-day-period.
“Unlike the purchase of land and houses, the purchase of a business has a far longer gestation period between the acceptance of the offer and the settlement,” Mr Munro said.
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