What is the NSW small business exemption?
From 1 January 2018, NSW small businesses will be exempt from paying stamp duty on certain types of insurance.
What is a small business?
Revenue NSW has stated that: “You are a small business if you are an individual, partnership, company or trust that is carrying on a business, and the business 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.”
What types of insurance are eligible for the exemption?
The types of insurance that may be eligible include:
- Commercial vehicle insurance, for a motor vehicle that is used primarily for business purposes.
- Occupational indemnity insurance (including professional indemnity) covering liability arising out of the provision by a person of professional services or other services (other than medical indemnity cover)
- Product and public liability insurance covering liability for personal injury or property damage occurring in connection with a business or arising out of the products or services of a business.
- Commercial aviation insurance for an aircraft that is used primarily for business purposes.
When does the exemption apply?
The exemption only applies if the eligible insurance is in a contract effected (new business and variations) or renewed on or after the 1 January 2018.
Where to get further Information
Visit the Revenue NSW website revenue.nsw.gov.au/taxes/insurance/exemptions