From 1 January 2018, NSW small businesses will be exempt from paying stamp duty on certain types of insurance.
What is a small business?
Revenue NSW has stated that:
“You are a small business if you are an individual, partnership, company or trust that is carrying on a business, and the business has an aggregated turnover of less than $2million. Aggregated turnover is your annual turnover plus the annual turnovers of any business entities that are your affiliates or are connected with you.”
Which insurance types will the exemption apply to?
This exemption can be applied for NSW small businesses with one the following insurance types:
Commercial vehicle insurance
Commercial aviation insurance
Occupational indemnity insurance
Product and public liability insurance
Instructions for applying for an exemption
To receive the exemption, please complete the below declaration in full, declaring that you are a small business. Email the completed declaration to email@example.com.
The exemption can only be applied to eligible insurance policies if we are holding a completed declaration. Act now and return the completed declaration, which we will retain on file.
[a] This declaration covers all policies issued to you during the financial year in which the cover is effected or renewed. A new declaration is required on an annual basis.
[b] If you are uncertain whether you classify as a small business, please speak to your accountant or financial adviser.
[c] Your insurer will place reliance on your declaration in charging the applicable insurance duty.
[d] False declarations may result in penalties up to $11,000 by Revenue NSW plus the insurance duty not paid and penalty interest on that balance.
[e] Revenue NSW may also be able to clarify your queries relating to the law and your obligations.
[f] If you are a not for profit organisation already entitled to a NSW Stamp Duty Exemption, your premium is already exempt and the NSW Stamp Duty Exemption for Small Business is not relevant.
[g] A fraudulent declaration may invalidate your insurance contract.