From 1 January, 2018 certain types of insurance for small business are no longer liable to stamp duty.
To qualify as a small business, the entity must:
- Be carrying on a business, and
- Have aggregated turnover of less than $2 million
The exception will apply to:
- Commercial vehicle insurance (being motor vehicle insurance for a vehicle used primarily for business purposes).
- Commercial aviation insurance (being aviation insurance for an aircraft used primarily for business purposes).
- Occupational indemnity insurance (being liability insurance for the provision of professional services (other than medical indemnity)).
- Product and public liability insurance (being 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).
For a policy to be exempt from stamp duty the insurer must have received a small business declaration before the insurance policy commences or is renewed.
For more information refer to www.revenue.nsw.gov.au/taxes/insurance/exemptions/sbe or contact your insurance broker or insurance company.