Changes to NSW Stamp Duty on some Insurance Policies

We are pleased to inform you that the New South Wales Government   has announced that they intend to provide some "Small Businesses" with an exemption from paying Stamp Duty in certain insurance policies. This exemption will apply to policies renewed or arranged on or after 1st January, 2018 and will apply to some Small Business Insurance policies, Crop and Livestock Insurance policies. 

New South Wales Stamp Duty currently adds between 2.5% and 9% to the premium charged by insurance companies on certain types of general insurance.

To qualify, you must complete and sign a declaration and return it to our office before your policy expires. Once a policy is renewed or arranged, the exemption cannot be applied retrospectively.

Who is a Small Business?

Revenue NSW has stated:

“A small business is an entity within the meaning of section 152-10 (1AA) of the Income Tax Assessment Act 1997 of the Commonwealth for the income year in which the insurance is effected or renewed.

At present, you are a small business entity if you are an individual, partnership, company or trust that:
• Is carrying on a business, and
• Has an aggregate turnover of less than $2 million.”

This is only a basic summary, and you may need to refer to the definitions in section 259A of the Act to form a proper view or seek professional advice from your Accountant.