What is the NSW Small Business Exemption?

From 1 January 2018, NSW Small Businesses are exempt from paying stamp duty on certain types of insurance.

What types of Insurance are eligible for the exemption?

• Commercial Vehicle Insurance – for a motor vehicle used primarily for business purposes

• Product and Public Liability Insurance – insurance covering liability for personal injury or property damage occurring in connection with or arising out of the products or service of a business.

What is a Small Business?

Section 259A of the Duties Act 1997 defines a small business as 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 entity is defined as an individual, partnership, company or trust that is carrying on a business, and 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. 

The legislation is complex and unfortunately we are not permitted to assist you in determining if you may be eligible for the exemption. 

How do I get more information? 

Please visit the NSW Revenue website http://revenue.nsw.gov.au/taxes/insurance and/or refer to the Duties Act 1997 (NSW).

Instructions for applying for an exemption

To receive the exemption, please complete this form declaring that you are a small business. Email the completed declaration to Coverforce Insurance Brokers Pty Ltd.

Please note:

• This declaration covers all policies issued to you during the current financial year.

• If you are uncertain whether you classify as a small business, please speak to your financial adviser.

• Coverforce and your insurer/s will place reliance on your declaration in charging the applicable insurance duty.

• False declarations may result in penalties up to of $11,000 by Revenue NSW plus the insurance duty not paid and penalty interest on that balance.

• Revenue NSW may also be able to clarify your queries relating to the law and your obligations.
  

This declaration covers policies effected or renewed during the current financial year. 

I hereby declare that I am 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).

I am a small business individual / partnership / company and / or trust, which is carrying on a business, and the business has an aggregated turnover of less than $2 million*.