For many small businesses tax time can be confusing and trying to figure out stamp duty and eligibility for tax exemptions can be a complex task. In 2018 the NSW Government introduced new laws that reduce insurance costs for small businesses by removing stamp duty tax. We’ve collated the requirements into a handy little checklist to check if you are eligible for the NSW small business stamp duty exemption.
Firstly, to be considered a small business by the NSW government you must;
- Have conducted business in the current year
- Had an aggregated turnover of less than $2million last year
- Have a projected aggregate turnover of less than $2million for the current year
Stamp duty is a type of tax specific to insurance transactions and is organised via your insurer when you first pay tax and everytime you renew that policy. The percentage of stamp duty payable can vary depending on your business. If your business meets all the requirements for the stamp duty exemption you must complete a written declaration that states your business is eligible. An insurance broker like Ausure Horizon can help you organise all your paperwork and figure out what you need to apply for the stamp duty exemption
To be considered for the NSW stamp duty business exemption you must also;
- Be a NSW based business
- Pay capital gains tax
- Have an aggregated turnover of less than $2million
The exemption also applies to specific types of insurance including:
- Product liability insurance.
- Commercial aviation insurance.
- Commercial vehicle insurance.
- Occupational indemnity insurance.
If you think you may be entitled to free stamp duty then you’ll need to complete a written declaration. An insurer like Ausure Horizon can assist you in finding the approved forms and determine if the exemptions are applicable to your business. These declarations must be completed each financial year. Contact Ausure Horizon for more details.