NSW Stamp Duty Exemption Declaration form
Why Do I Need To Complete a Stamp Duty Declaration?
If your business meets the requirements we can remove stamp duty from certain insurance policies however we do require you to complete and return the attached small business stamp duty declaration no less than 4 weeks prior to the due date of your policy. These declarations are valid for a financial year. If you have completed a declaration in the past you are receiving this email because that declaration has now expired and a new declaration is required.
The NSW Government small business stamp duty exemption was originally effected on 1 January 2018. Currently all commercial insurance policies attract a stamp duty tax which is imposed by the Government. For eligible small business, this means that there is no longer a requirement for this tax to be paid on certain policies.
In order to be eligible for the exemption your business must be an individual, partnership, company or trust carrying on a business where the aggregated turnover (including any businesses that are affiliated or connected with you) in the financial year that the policy falls due, is less than $2 million.
The types of insurance that may be eligible include:
- Commercial vehicle insurance, for a motor vehicle that is used primarily for business purposes and is based in NSW
- 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.
We suggest that you discuss the required criteria including your company structure with your accountant. If you meet the eligibility criteria and so that you can take advantage of the stamp duty exemption, please complete the attached stamp duty exemption declaration and return to our office. If the completed declaration is not returned to our office no less than 4 weeks prior to the renewal date of your policy we cannot guarantee that the insurer will be in a position to remove the stamp duty from your renewal terms.
We note that there is a maximum penalty of $11,000 for individuals and $55,000 for corporations together with any interest or penalty tax if the Declaration is provided knowing that it is false or misleading.
If you would like to review further details regarding these changes, please follow the below link to the NSW Government revenue website:
http://www.revenue.nsw.gov.au/taxes/insurance/exemptions/sbe
