What is the NSW small business stamp duty exemption?

NSW insurance stamp duty is a tax on insurance premiums that is payable when a customer makes a premium payment on their policy. This stamp duty is collected by insurers and paid to Revenue NSW.

The NSW government introduced a small business stamp duty exemption for eligible insurance taken out on or after 1 January 2018. The types of insurance that may be eligible for stamp duty exemption include: commercial vehicle insurance, occupational indemnity insurance, product and public liability insurance and commercial aviation insurance.

Special definitions apply to each of these insurances. Refer to section 259B of the Duties Act 1997 (NSW) for exact definitions.

Represented by a broker? If you want to make a declaration, you’ll need to contact them directly.

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.

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).

Small business declaration

Frequently Asked Questions

Following the 2017 NSW Budget, the NSW government created a new small business stamp duty exemption in the Duties Act 1997 (NSW) (the Act) for eligible classes of business insurance effected (including endorsements) or renewed after 1 January 2018.

Yes. You’ll be able to seek a stamp duty exemption on any policy that is effected or renewed on or after 1 January 2018.

If you’re represented by a broker and want to make a declaration, you’ll need to contact them directly.

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