01 Dec NSW Stamp Duty Exemptions
NSW Stamp Duty Exemptions
In the 2017/2018 State Budget, the NSW Government announced that from 1st of January 2018 there would be an exemption for Stamp Duty on certain insurance products for small business.
From 1 January 2018 small businesses are not liable to duty on certain types of insurance. The exemption includes the following types of insurance arranged by CRM Brokers:
- Commercial Vehicle insurance – applies to both Commercial and Private Motor Insurance where a motor vehicle is used primarily for business purposes,
- Occupational (Professional) Indemnity insurance,
- Product and Public Liability and;
- Commercial Aviation insurance.
Special definitions apply to each of these insurances so we recommend you refer to section 259B of the Act for full details. Insurers will only apply the exemption where they determine the policy is affected (in whole or part).
Small Business Definition:
A Capital Gains Tax small business 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. A small business is defined as:
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 annual turnover plus the annual turnovers of any business entities that are your affiliates or are connected with you. If you are uncertain whether you classify as a small business, we strongly recommend you speak to your financial adviser.
How to apply for an exemption
The NSW Government requires eligible small businesses to complete a declaration in writing confirming their eligibility. The declaration must be made for each policy the customer holds where the exemption applies, and must be made each year for each policy.
Download a copy of the CRM Brokers’ NSW Small Business Stamp Duty Exemption Declaration here and return the completed form to us.
For more information
Visit CRM Brokers NSW Stamp Duty Exemption Frequently Asked Questions website or visit Revenue NSW website and see in particular:
- Revenue NSW “Small Business Exemption” heading in Frequently Asked Questions – http://revenue.nsw.gov.au/info/legislation/budget/201706/faq
- Insurance Duty- http://www.revenue.nsw.gov.au/taxes/insurance/factsheet/overview
If you have any questions, do not hesitate to contact CRM Brokers on 1300 880 494.
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