I've just moved from South Australia to Victoria. I want to buy a large livestock and butchering business from my brother who lives near Echuca and can no longer manage the farm. I'm trying to get my finances in order and do a budget to work out if the business is viable and was wondering if I will have to pay duty on the sale of any cattle or sheep?
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Answer by Cressy Wallwork, Swanbourne 6010 WA
· Duty is payable for both livestock sales and the sales of their carcasses in Victoria. This is referred to as 'livestock duty'.
· If you sell your livestock through an approved agent then the agent will be liable for the payment of duty. However they will usually pass that cost back onto you.
· The agent will need to pay duty to the State Revenue Office (SRO) in Victoria through a monthly return.
· If you decide to sell the livestock independently then you will have to pay the SRO directly by way of statement.
· The duty for carcasses will be depend on the weight of the beast. Carcasses weighing up to 250kg will have a flat rate of $0.90 duty attached. Those weighing more than 250kg will have a flat rate of $1.30 attached.
- The sale of any cattle will require payment of $0.05 cents for every $20.00 of the purchase price or for every fractional part of $20.00. This is applied either to each head of cattle sold separately or to the entire amount if the cattle are sold in a group.
- There is a maximum of $5.00 payable for any head of cattle regardless of whether sold singly or as part of a lot.
- For calves a flat rate of $0.15 cents a head is payable.
- The sale of sheep or goats attracts a flat rate of duty of $0.12 cents each.
The sale of any swine attracts a duty of $0.02 cents for every $5.00 or part of $5.00 of the purchase price for one swine (to a maximum of $0.16 cents).