New stamp duty exemption on business insurance for eligible small business entities in NSW
From 1 January 2018 eligible small business entities are exempt from stamp duty on certain types of insurances in NSW. The exemption applies to the following types of business insurance:
- commercial vehicle insurance;
- commercial aviation insurance;
- occupational indemnity insurance; and
- product and public liability insurance.
To obtain the benefit of this exemption, business entities will need to advise their insurer or broker that they are eligible (using a declaration form provided by the insurer) prior to renewing or commencing an insurance policy.
To be eligible the entity must be carrying on a business and be likely to have aggregated turnover in the current year of less than $2 million. In calculating aggregated turnover, the turnover of any connected entities and affiliates must be included. Determining eligibility may not always be a straightforward exercise and care must be taken as penalties and interest may apply if an incorrect claim is made.
For more information on the stamp duty exemption please visit Revenue NSW’s website.
They have a set of frequently asked questions that you may find useful.