The sale of a business may be a supply of a going concern and therefore GST-free. The concession can assist in providing cash-flow and stamp duty savings to purchasers of businesses.
The cash-flow benefit is the saving to the purchaser in not having to fund the GST payable on the purchase price of the business (although in most cases this GST would be recoverable as a GST input tax credit in a subsequent BAS). The stamp duty benefit of the concession is that duty is calculated on the sale price without GST. continue reading