NSW Stamp Duty Exemption for Small Business

Small businesses may be exempt from paying NSW Stamp Duty on certain eligible insurance policies with an inception date on or after 1 January 2018.

Commercial Vehicle insurance, Occupational Indemnity insurances, Public & Product Liability insurance and Commercial Aviation insurance policies are impacted by the change.

 

Exemption eligibility

To qualify, your annual aggregated business turnover must be less than $2,000,000 and your Insurer must receive a completed exemption declaration form before your current policy expires.

Here is more information regarding eligibility and the conditions that apply from Revenue NSW’s website.

 

As eligibility is subject to the Income Tax Assessment Act, your circumstances may require advice from your Accountant or Financial Adviser to determine your ‘aggregated turnover’. Oxley Insurance Brokers are unable to provide advice on taxation matters.

Please note that fines and penalties apply to false and/or misleading Declarations and fraudulent Declarations may result in your Insurer being able to avoid your contract of Insurance and refuse to pay a claim(s).

At this stage, we are advised that an exemption form to confirm eligibility will be required each financial year. As this is a new process implemented by the NSW State Government, the National Insurance Brokers Association (NIBA) are expecting that Revenue NSW will issue a ‘Practice Note’ advising it’s requirements.

 

How do I apply for NSW Stamp Duty Small Business exemption?

If your small business is eligible and you wish to claim the NSW Stamp Duty Small Business exemption for eligible insurance policies complete and return a completed declaration form to your local Oxley Insurance Brokers office immediately.

Please download the NSW Stamp Duty Small Business Exemption declaration here (pdf)

 

The information contained in this notice is current as at 7 December 2017 and may be subject to change.