Stamp Duty – Estimated Stamp duty on a $500,000 business in:

NSW $17,990
Victoria No specific duty on business sales in Victoria
Western Australia $17,765
ACT $20,500
Queensland $15,975
Northern Territory $26,750
South Australia $21,330
Tasmania $17,550

Note that rates are subject to change.

Settlement Costs – Solicitors fees generally work on a sliding scale based on the purchase price of the business.

Lease Assignment Fees – These are payable when the landlord uses a real estate agent to manage the property.

Solicitors Fees – Where a new lease is prepared or an existing lease assigned there may be a cost for a solicitor to draw up the appropriate documentation.

Rent – Most commercial rents are paid monthly in advance so this would be required at settlement.

Bank Guarantee/Bond – Landlords/Managing Agents normally require 1-6 months Bond/Bank Guarantee to cover rent and VOG’s.

Variable Outgoings – Usually paid in advance and can include items such as cleaning, common lighting, gardening, security, management fee’s.

Rates & Taxes – Water Rates and Shire Rates may or may not be included in the variable outgoings. As most rates are paid from July to June the amount will depend on when the business is purchased.

Stocktaking Fees – Usually paid for jointly by vendor and purchaser if a professional stock taker is utilised. Can be a minimum charge for time or a percentage of the value of the stock.

Neon Signage – Many such signs are leased so there may be an adjustment at settlement.

Yellow Pages Advertising – Due to the cost of Yellow Pages advertising (up to $8000) there may be some adjustment required.

Industry Fees – There are many fees that pertain to certain industries. Examples are:- Association Fees, Lotto transfer fees (based on lottery product sales) Food House/Stall Licence fee, Liquor Licence Transfer Fee, Dangerous Goods Licence etc.

Finance Costs – Generally the cost of financing a business ranges from 0.50% to 2.50% of the amount financed. These costs are dependent on the lender and the structure of the finance package.

Mortgage Stamp Duty on a $500,000 loan by State:

NSW $1941
Victoria Nil
Western Australia Nil
Queensland $2000
Northern Territory Nil
South Australia $2233
Tasmania $877.50

Note that rates are subject to change without notice.

Stamp duty calculator by state.

The above represents some of the most common costs you will encounter when buying a business. Between your Business Broker and your Advisors you should be able to get a pretty accurate idea of the costs involved for a particular business.

Please note that this information is of a general nature only. Buyers and Sellers are urged to seek independent financial and legal advice when buying or selling a business.