Do you qualify?

Do you qualify?

Guide to NSW small business

stamp duty exemption

Guide to NSW small business

stamp duty exemption

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From 1 January 2018, some small businesses may be eligible to seek exemption from paying NSW stamp duty on certain types of insurance.

From 1 January 2018, some small businesses may be eligible to seek exemption from paying NSW stamp duty on certain types of insurance.

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Request a call back

What is a small business?

Revenue NSW has stated that you are a small business eligible to seek a stamp duty exemption 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 $2 million. Aggregated turnover is your Australia wide annual turnover plus the annual turnovers of any business entities that are your affiliates or are connected with you.

Insurance types the exemption applies to:

Insurance type Cover affected
Commercial vehicle insurance
Motor vehicles used primarily for business purposes.
Commercial aviation insurance
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).
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.

Where an insurance policy covers multiple types of insurance, the insurer is required to apportion the policy’s premium among the different types of insurance. Duty won’t be calculated on the premiums relating to the exempt types of insurance.

How to claim the exemption

If you qualify for this exemption, you will need you to let us know so we can ensure that Stamp Duties charged for your NSW exposures are removed on all the relevant policies.

To apply for this exemption, simply download and fill in the form below. Once completed this can either be scanned and emailed, or mailed, to us prior to your renewal date.

Please note that a new form will be required each financial year.

Exemption form

Stamp duty declaration guidelines

  1. The declaration covers all policies issued to you during the current financial year (July – June).
  2. ‘Aggregated turnover’ is your Australia wide annual turnover, plus the annual turnovers of any business entities that are affiliates or are connected with you.
  3. If you are uncertain whether you classify as a small business, please speak to us.
  4. Your insurer will place reliance on your declaration in charging the applicable insurance duty.
  5. False declarations may result in penalties up to of $11,000 by Revenue NSW plus the insurance duty not paid as well as penalty interest on that balance.
  6. Revenue NSW may also be able to clarify your queries relating to the law and your obligations.

Frequently asked questions

The information provided in the following questions is designed to provide helpful general guidance on some key issues relevant to this topic. It should not be relied on as legal advice. It does not cover everything that may be relevant to you and does not take into account your particular circumstances. It is only current as at the date of release. You must ensure that you seek appropriate professional advice in relation to this topic as well as to the currency, accuracy and relevance of this material for you.

No, the exemption only applies to the renewal of your policy or any new policy placed after 1st January 2018.

Revenue NSW has provided guidance to the industry which indicates that a declaration is only valid for a financial year (i.e. until 30 June 2018, at present). As such, a new declaration will be required each financial year. We are aware of proposed changes to the law which may change this position and we will provide an update when more information is known.

Your policy may include some types of insurance that are not exempt from duty or exposures in the other states or territories. Check with your broker for a detailed breakdown of the cover included in your program.

When you provide us your turnover breakdown at renewal, we will ensure that the insurer apportions the premium accordingly so you can take advantage of the exemptions you are eligible for.

Yes, if you took out the policy after 1 January 2018, and no if you took it out previously.

Yes, there is a penalty of $11,000, and in addition to that your insurer may bill you for amount of the duty due, plus penalty tax.

For the exemption to be applied your broker must receive your declaration prior to renewal. Failure to do so will mean that stamp duty will be paid for this tax year. Clients have an opportunity to complete a new form in the next tax year.

Current stamp duty rates are 5% or 9 % depending on the policy coverage section. This will be automatically calculated depending on the risk for each policy coverage section.

No. The NSW government has excluded home insurance as an eligible policy for NSW small business stamp duty exemption.

No. Please refer to the table above, 'Insurance types the exemption applies to' for a list of policies in scope.