What is the Small Business Stamp Duty Exemption?
From 1 January 2018, small businesses are exempt from paying NSW stamp duty on certain types of insurance.
What is a small business?
As per Revenue NSW, the definition of a small business is “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”.
What types of Insurance may be eligible for the exemption?
A range of Insurance policies are covered by the exemption including:
- Product and public liability
- Commercial vehicle
- Workers Compensation
- Compulsory Third Party for motor vehicles
- Marine transit
- Group life
- Occupational indemnity insurance (including professional indemnity) covering liability arising out of the provision by a person of professional services or other services (other than medical indemnity cover).
It also applies to insurance acquired for specific industries such as:
- Not for profit
How do I apply for the exemption?
To be eligible for the exemption, please complete the below declaration declaring that your entity is a small business.
- The declaration covers all policies issued to you during the financial year the policy commences. A new declaration is required on an annual basis.
- If you are uncertain whether you classify as a small business, please speak to your financial adviser.
- Honan on behalf of insurers will place reliance on your declaration in charging the applicable insurance duty.
- False declarations may result in penalties up to $11,000 by Revenue NSW plus the insurance duty not paid and penal interest on that balance.
- Revenue NSW may also be able to clarify your queries relating to the law and your obligations.
- Neither Honan or your insurer is responsible or liable for incorrect or dishonest declarations.
This declaration only covers policies for the financial year in which the cover is effected or renewed.