NSW Small Business Stamp Duty Exemption effective 1st January 2018
From 1 January 2018 eligible small businesses (generally with less than $2million turnover) will not be required to pay duty on certain types of insurance, including:
- Occupational indemnity insurance (or professional indemnity) – covering liability arising out of the provision of professional or other services (other than medical indemnity insurance)
- 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 services of, a business.
- Commercial vehicle insurance – for a motor vehicle used primarily for business purposes
For a small business to receive the exemption from paying stamp duty on an insurance contract, they need to complete the exemption declaration and returned.
Note: quotes may be issued exempt of NSW stamp duty without receipt of the declaration, however the policy cannot be processed as an exempt policy until the completed exemption declaration has been received. NSW stamp duty will be charged.
What is a small business?
You are a small business for the current year if:
- you carry on a business in the current year; and
- one or both of the following applies:
- you carried on a business in the previous year and your aggregated turnover for that previous year was less than $2million;
- your aggregated turnover for the current year is likely to be less than $2million.
Categorised in: Company News, Industry News