The NSW Government has created a new small business stamp duty exemption for eligible insurance policies acquired or renewed on or after 1 January 2018. In order to get the benefit of the exemption, you must:
These changes apply to these insurances:
The definition of small business used in the amended Duties Act 1997 (NSW) is the one used on the Tax Assessment Act 1997. As general guidance a small business entity is an individual, partnership company or trust carrying on business and turning over less than an aggregated $2 million a year. Aggregated turnover is your annual turnover plus the annual turnovers of any business entities that are your affiliates or are connected with you.
If you are not sure if you are eligible as a small business you can visit Revenue NSW website for more information or talk to your professional advisors such as your tax advisor.
If you believe you are eligible as a small business you will need to make a small business declaration for each insurance each time you take out an eligible policy or when your eligible policy is renewed.
If you do not complete the declaration for the insurer you are not entitled to claim the exemption. There are penalties for claiming the exemption if you are not eligible for it.