You may be exempt from paying stamp duty on some insurances.
The NSW Government has created a new small business stamp duty exemption for eligible insurance acquired on or after 1 January 2018. In order to get the benefit of the exemption, you must:
- be an eligible small business; and,
- provide a Declaration to your insurer in an approved form.
Is my small business eligible?
You are a small business entity if you are an individual, partnership, company or trust that:
- is carrying on a business, and
- has an aggregated turnover of less than $2 million.
Aggregated turnover is your annual turnover plus the annual turnovers of any business entities that are your affiliates or are connected with you.
What type of insurance is exempt?
- Commercial vehicle insurance – being motor vehicle insurance for a vehicle used primarily for business purposes
- Commercial aviation insurance – being aviation insurance for an aircraft used primarily for business purposes
- Occupational indemnity insurance – insurance covering liability arising out of the provision by a person of professional services or other services (other than medical indemnity cover within the meaning of the Medical Indemnity Act 2002 of the Commonwealth)
- Product and public liability insurance – insurance covering liability for personal injury or property damage occurring in connection with a business or arising out of the products or services of a business.
When is the policy liable to duty?
If an insurer does not have a small business declaration as at the date the policy is effected or renewed then the policy is liable to duty. Refer to the frequently asked questions where a declaration is received after the policy is effected or renewed.
How do I make the Declaration?
Contact your insurance provider
Please refer to the NSW Government’s Small Business Exemptions web page or contact your Client Manager at Hales Douglass on (02) 4455 5333 or via email to check you meet the small business eligibility.