The NSW Government recently introduced a new small business stamp duty exemption under the Duties Act 1997 (NSW) for eligible insurance acquired on or after 1 January 2018.
This means you may be eligible for a potential saving of 2.5 – 9.5% on your current insurance costs, a welcome cost reduction for any small business.
Am I eligible?
You need to the fit the definition of 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 cover).
It also applies to insurance acquired for specific industries such as:
- Not for profit
Penalty fines of up to $11, 000 plus penalty stamp duty, interests and costs, may apply to a small business that wrongly claims the exemption.
How do I apply for the Exemption?
To be eligible for the exemption, you must complete a declaration confirming their entity is a small business. This needs to be provided to Honan along with your clients insurance renewal declaration.
This declaration can be filled out online. Click here to complete your declaration.
When does the new exemption take effect?
The exemption will take effect on or after 1 January 2018 on eligible insurances.
How do I get more information?
For more information, please refer to the NSW Revenue website.
Honan Insurance Group Pty Ltd (“Honan”) ABN 67 005 372 396, AFSL 246749. Honan is not the underwriter for any insurance product that you may decide upon and insurance is issued subject to the terms, conditions and exclusions as set by the particular underwriter.
This flyer contains information of a general nature only and is not intended to be advice. It is important for you to consider these matters and read the Product Disclosure Statement (“PDS”) and policy before you make a decision about an insurance product. You can get a copy of the PDS by calling 02 9299 0767.