NSW SMALL BUSINESS STAMP DUTY EXEMPTION

What is the small business stamp duty exemption?

What is the small business exemption?

The New South Wales (NSW) Government introduced a small business stamp duty exemption for certain general insurance products acquired on or after 1 January 2018. In order to gain the benefit of the exemption, the insured must:

  • be an eligible small business; and
  • provide a declaration to the insurer

What types of insurance will the exemption apply to?

For Achmea Australia All-in-One Farm Pack policyholders, the types of insurance that may be eligible for exemption include:

  • Commercial vehicle insurance; and
  • Product and public liability insurance.

What is an eligible small business?

Revenue NSW has stated that:

“Considering the entity and all affiliates and connected entities, the following must be true to be an eligible small business:

  • The entity is carrying on a business
  • The aggregated turnover for the previous financial year was less than $2 million
  • The likely aggregated turnover for the current financial year is less than $2 million

Aggregated turnover is your Australia-wide annual turnover plus the annual turnovers of any businesses that are your affiliates, or are connected with you.”

How do I receive the exemption?

To receive the exemption, you may provide the declaration in any of the following ways:

For more information, please visit the Revenue NSW website.

Please note:

  • The declaration covers the policy/policies issued to you during this financial year.
  • If you are uncertain whether you classify as a small business, please speak to a financial adviser.
  • Achmea Australia will place reliance on your declaration in charging the applicable insurance duty.
  • 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 the balance.
  • Revenue NSW may also be able to clarify your queries relating to the law and your obligations.
  • If you are a not for profit organisation already entitled to a NSW Stamp Duty Exemption, the NSW stamp duty exemption for small business is not relevant.
  • If you are a small business and meet the NSW Government’s eligibility requirements for the small business stamp duty.

Insurance issued by Achmea Schadeverzekeringen N.V. (Achmea) ABN 86 158 237 702 AFSL 433984. Achmea is authorised to provide financial product advice in relation to general insurance products. General advice does not take into account your specific personal objectives, financial situation and needs (your personal circumstances).

Before using this advice to decide whether to purchase an insurance policy, you should consider your personal circumstances and the relevant Product Disclosure Statement (“PDS”) which is available from the ‘Downloads’ section of our website www.achmea.com.au/downloads