Do you qualify for the New South Wales Small Business stamp duty exemption?
The New South Wales Small Business stamp duty exemption came into effect on 1 January 2018 and applies to small businesses domiciled in NSW with turnover of less than $2 million a year. This includes the business’s turnover across the entire country, as well as any entities or affiliates that are part of your larger enterprise.
You can check your eligibility on the Office of State Revenue (OSR) NSW website by using this link. Scroll down to Insurance Duty, then to Small Business Exemption to access all the conditions.
If you qualify for this exemption, you will need you to let us know so we can ensure that Stamp Duties charged for your NSW exposures are removed on all the relevant policies.
To apply for this exemption, simply download and fill in one of the forms below. Once completed this can either be scanned and emailed, or mailed, to your insurance broker prior to your renewal date. Please note that a new form will be required each financial year.
Frequently Asked Questions
Q: Can you receive a refund if you have taken out insurance before 1 January 2018?
A: No, the exemption only applies to the renewal of your policy or any new policy placed after 1st January 2018.
A: Revenue NSW has provided guidance to the industry which indicates that a declaration is only valid for a financial year (i.e. until 30 June 2018, at present). As such, a new declaration will be required each financial year. We are aware of proposed changes to the law which may change this position and we will provide an update when more information is known.
Q: Why am I being charged stamp duty on my new small business insurance cover taken out after 1 January 2018?
A: Your policy may include some types of insurance that are not exempt from duty or exposures in the other states or territories. Check with your broker for a detailed breakdown of the cover included in your program.
Q: What if my business operates in multiple states or territories?
A: When you provide us your turnover breakdown at renewal, we will ensure that the insurer apportions the premium accordingly so you can take advantage of the exemptions you are eligible for.
Q: Is my business eligible for the exemption if I pay for my insurance cover in installments?
A: Yes, if you took out the policy after 1 January 2018, and no if you took it out previously.
Q: Is there a penalty for making a false claim for exemption?
A: Yes, there is a penalty of $11,000, and in addition to that your insurer may bill you for amount of the duty due, plus penalty tax.
Q: What if I forget to send my declaration form to my broker prior to renewal?
A: For the exemption to be applied your broker must receive your declaration prior to renewal. Failure to do so will mean that stamp duty will be paid for this tax year. Clients have an opportunity to complete a new form in the next tax year.
Need help with your NSW Stamp Duty Exemption?
If we at Gallagher can assist you in any way with this or other matters that may affect your business, please don’t hesitate to get in touch. We’re keen to help.
Call 1800 240 432 to contact your nearest branch, or fill in the form on the right and we will get back to you.