The NSW Government has created a new small business stamp duty exemption in the Duties Act 1997 (NSW) (the Act) for eligible insurance acquired on or after 1 January 2018. This applies to certain types of Insurance as set out below.
In order to get the benefit of the exemption, the business must:
- be an eligible small business; and,
- provide a Declaration to your insurer in an approved form.
At present, the definition of a small business entity is if you are 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 exemption will apply to the following types of insurance:
- Commercial vehicle insurance – being motor vehicle insurance for a vehicle used primarily for business purposes
- Commercial aviation insurance – being aviation insurance for an aircraft used primarily for business purposes
- Occupational indemnity insurance – insurance covering liability arising out of the provision by a person of professional services or other services (other than medical indemnity cover within the meaning of the Medical Indemnity Act 2002 of the Commonwealth)
- Product and public liability insurance – insurance covering liability for personal injury of property damage occurring in connection with a business or arising out of the products or services of a business.