Guide to NSW small business stamp duty exemption

From 1 January 2018, some small businesses may be eligible to seek exemption from paying NSW stamp duty on certain types of insurance.

What is a small business?

Revenue NSW has stated that you are a small business eligible to seek a stamp duty exemption 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 Australia wide annual turnover plus the annual turnovers of any business entities that are your affiliates or are connected with you.

Insurance types the exemption applies to
 
Insurance type Cover affected 
 Commercial vehicle insurance Motor vehicles used primarily for business purposes. 
 Commercial aviation insurance 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).
 Product and public liability insurance  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.
 

The Stamp duty exemption product list lists all the QBE products the exemption applies to.

Stamp duty declaration guidelines

  1. The declaration covers all policies issued to you during the current financial year (July-June)
  2. ‘Aggregated turnover’ is your Australia wide annual turnover, plus the annual turnovers of any business entities that are affiliates or are connected with you.
  3. If you are uncertain whether you classify as a small business, please speak to your financial adviser.
  4. QBE will place reliance on your declaration in charging the applicable insurance duty.
  5. False declarations may result in penalties up to of $11,000 by Revenue NSW plus the insurance duty not paid as well as penalty interest on that balance.
  6. Revenue NSW may also be able to clarify your queries relating to the law and your obligations.

How do I apply for the exemption?

For Brokers/ Authorised Representatives: To receive the exemption, please have your client complete the NSW Small Business Stamp Duty declaration and notify QBE in writing of your client’s entitlement to the stamp duty exemption. Alternatively, if you are properly authorised by your client, you could sign the declaration on their behalf. You do not need to send the declaration to QBE.

For individuals, company, partnership or trust: To receive the exemption please complete the NSW Small Business Stamp Duty declaration declaring that you/your business entity is a small business. Email the completed declaration to NSW.stampduty@qbe.com

Customers with aviation insurance please email the completed NSW Small Business Stamp Duty declaration to aviation.admin@qbe.com.

For further information

You can find more information on the Revenue NSW website:

Also see the Duties Act 1997 (NSW) and the Income Tax Assessment Act 1997 (Cth).

Frequently asked questions

The information provided in the following questions is designed to provide helpful general guidance on some key issues relevant to this topic. It should not be relied on as legal advice. It does not cover everything that may be relevant to you and does not take into account your particular circumstances. It is only current as at the date of release. You must ensure that you seek appropriate professional advice in relation to this topic as well as to the currency, accuracy and relevance of this material for you.

Download the FAQs

The NSW small business stamp duty exemption declaration is a legally binding statement made by the insured declaring that they are eligible for the NSW small business insurance stamp duty exemption. The declaration should be provided in the approved form confirming that the insured individual, partnership, company or trust is a 'small business' as defined in the Act*.

* Within the meaning of section 152-10 (1AA) of the income Tax Assessment Act 1997 of the Commonwealth (the Act) for the income year in which the insurance is effected or renewed

The exemption will only apply if:

  • The relevant insurance (new business, additional risk variation and/or renewal) is entered into/renewed on or after 1 January 2018
  • A NSW Small Business insurance stamp duty exemption declaration has been provided.

Revenue NSW has provided guidance to the industry which indicates that a declaration is only valid for a financial year. As such, a new declaration will be required each financial year, which can be provided upon renewal of your policy.

Current stamp duty rates are 5% or 9 % depending on the policy coverage section. This will be automatically calculated depending on the risk for each policy coverage section.

The NSW small business stamp duty exemption only applies to insurance policies effected or renewed for NSW risks on or after 1 January 2018.

For policies renewed or effected prior to 1 January 2018, only additional risks added to these policies on or after 1 January 2018 will be eligible for the stamp duty exemption, if all other eligibility conditions are met.

If a policy is effected or renewed before 1 January 2018 it will remain liable to duty. It does not matter if the premium is paid before or after 1 January 2018 or if the premium is paid in instalments.

No. Please refer to the table above, 'Insurance types the exemption applies to' for a list of policies in scope.

No. The NSW government has excluded home insurance as an eligible policy for NSW small business stamp duty exemption.

Please refer to the table above, 'Insurance types the exemption applies to' for a list of impacted products.