With effect from January 1, 2018, NSW small businesses may be exempt from paying stamp duty on certain types of insurance. A small business has been defined by Revenue NSW as an individual, partnership, company or trust that is carrying on a business, and the business has an aggregated turnover of less than $2 million in the income year the policy is commenced/renewed.
If you are a NSW small business with one of the following insurance policies in place this exemption may be applied:
- Occupational indemnity insurance
- Public & products liability insurance
- Commercial motor insurance, used primarily for business purposes
- Commercial aviation insurance used primarily for business purposes
To claim the exemption a small business owner must complete a declaration, in a form acceptable to the insurer, declaring that they are a small business. It must be lodged prior to or at the time of commencing/renewing the policy. In addition to the above small business exemptions, all crop and livestock insurance in NSW are stamp duty exempt from January 1, 2018. This does not have a turnover limit and so no declaration is needed.
One final point to note is that the legislation leaves some room for differing interpretation by insurers, particularly in relation to the form of declarations and the apportionment of stamp duty charges for multi-section policies.
Existing clients of Insurance House should contact their brokers directly on 1300 305 834 if they have any questions regarding the changes and the completion of declaration forms.
To learn more about the Stamp Duty Exemptions (NSW) contact Insurance House on 1300 305 834
Additional information and further specific details are available via the NSW Revenue link below: