Going Concern

A going concern refers to a business that is sold with everything in place for the buyer to continue operating it without interruption.

What is a going concern?

The term ‘going concern’ is typically used in the context of a sale of a business. By selling the business as a going concern, the owner transfers everything needed for the buyer to continue to run the business as usual . This includes the property, assets, contracts and so forth. 

Do you have to pay GST on the sale of a going concern? 

The sale of a business as a going concern can typically be exempt from Goods and Services Tax (GST) in certain circumstances. This is subject to meeting specific conditions outlined by the ATO. 

In most cases, the sale of a going concern is GST-free if all the following apply: 

  • The sale is for payment
  • The purchaser is registered or required to be registered for GST
  • The purchaser and seller have agreed in writing that the sale is of a going concern

Read more here to find out if you're exempt from GST. 

What are the benefits of buying or selling a business as a going concern? 

Buying or selling a business as a going concern offers several benefits. These include: Continuity of operations Smoother transition for employees and customers Potential tax advantages Simplified administrative processes.

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