NSW Stamp Duty Exemption for Small Businesses

An insurer will require the insured to provide a small business declaration. This is a declaration by the insured to the effect that the person is a small business at the time that the contract of insurance is effected or renewed. A single small business declaration will cover all insurance effected with a particular insurer during the small business’s income year.

You will need to aggregate the annual turnover of any business entities that are either your affiliates or are connected with you.

No. The exemption only applies to insurance policies effected or renewed on or after 1 January 2018.

A small business is not liable to duty for certain types of Insurance where the policy is effected or renewed on or after 1 January 2018. However, the policy may include multiple types of insurance which may not always be clear. Duty will continue to apply to other types of insurance and this may be why you will still see duty on your policy after 1 January 2018. Contact your insurer if you require further information.

No. Eligibility is determined at the time the policy is effected or renewed.

A court may impose a penalty of up to $11,000 for an individual and $55,000 for a corporation. In addition, the insured may be required by the insurer to pay to the insurer an amount equal to the duty, together with any interest or penalty tax payable. The insurer may recover this amount as a debt if the amount is not paid.