From January 1st 2018 Revenue NSW have advised that small businesses can apply for a exemption from NSW Stamp Duty on certain types of insurance. The types of insurance applicable for the exemption are as follows:
occupational indemnity insurance
public and product liability insurance
commercial vehicle insurance for motor vehicles used primarily for business purposes
commercial aviation insurance for an aircraft used primarily for business purposes
(as per http://www.revenue.nsw.gov.au/taxes/insurance/exemptions )
The exemptions are for 'small businesses' only within NSW, so what constitutes a small business? Revenue NSW has stated that: “You are a small business if you are 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 Australia wide annual turnover plus the annual turnovers of any business entities that are your affiliates or are connected with you”.
So you are deemed to be a small business and are purchasing the insurances which are eligible, how do you apply for the exemption? This is done through your insurance broker. They will provide you with a declaration form which your broker will forward to the insurer once you have completed and returned to them.
Should you have any questions pertaining to the above please contact Colne Risk Advisory