You may be aware that small businesses operating in New South Wales may now qualify for a stamp duty exemption when you renew your insurances after the 1st of January 2018.
This exemption applies to small businesses 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 to let us know so we can ensure that Stamp Duty charged for your NSW exposures are removed on the relevant policies. Simply complete the form available here and return it to firstname.lastname@example.org prior to your renewal date.
Q: What Go Get Insurance products does this exemption apply to?
A: The exemption only applies to Public Liability policies – Injury & Illness and Tools policies are not covered by this exemption.
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.
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 instalments?
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.