How to get the exemption
In order to get the benefit of the exemption, there’s just a couple of things to note.
Make sure your small business is eligible
NSW insurance stamp duty legislation is complex, and insurers aren’t allowed to help you determine if you’re eligible for the exemption. We suggest you seek professional advice to find out if the exemption applies to you.
Revenue NSW’s definition of a small business would usually capture an individual, partnership, company or trust conducting a business where its aggregated turnover (as defined in the act) in the relevant period is less than $2 million.
Submit the declaration
The insured person must provide a declaration that they’re eligible for the exemption at the time the relevant insurance is effected or renewed. If you want to make a declaration for one of our insurance policies, choose one of the following options:
- Option 1: If you haven’t paid your premium, call the number listed on your policy document to make the declaration and we’ll deduct the stamp duty from your policy.
- Option 2: If you’ve already paid your premium and want to make the declaration, complete and submit the declaration form.
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If we receive the declaration after the contract of insurance is effected or renewed, we might not be able to recover the stamp duty already paid. In this case, we reserve the right not to make any premium adjustment or refund any amounts. We also reserve the right to deduct the reasonable costs of any recovery.
False declarations
Penalties may apply for providing false or misleading information, so we recommend seeking professional advice before making the declaration. If you knowingly provide a false or misleading declaration, there’s a maximum penalty of $11,000 by Revenue NSW.
If you provide a false declaration (whether its dishonest or not) and it causes us to be liable to pay a duty, you might need to pay it back to us, together with any interest or penalty tax payable.
Need to know more?
Visit Revenue NSW or refer to the Duties Act 1997 (NSW).