Stamp Duty Exemptions on Insurance Policies
What is stamp duty?
Stamp duty is a statutory charge (tax) imposed by state and territory governments that applies to many financial transactions, including the purchase of insurance policies. Stamp duty charges can have an impact on the total premium payable for insurance policies, and can range in amount, depending on which state you are based.
Each state and territory government has independent rules governing the amount of stamp duty applicable to different financial transactions. Some states and territories allow stamp duty exemptions for certain types of organisations, particularly not-for-profit and charitable community organisations, and in some cases, small business. For example, Revenue NSW introduced a small business stamp duty exemption for eligible insurance policies taken out on or after 1 January 2018.
The process for obtaining a stamp duty exemption if your organisation is eligible is as follows:
- Contact the governing body in your state (refer to table below for contact details).
- Request an application form.
- Once approved, forward the exemption letter to your EBM Account Manager.
If you already have an exemption letter, please provide this to your EBM Account Manager who will ensure that stamp duty is not charged at renewal.
Are you eligible for a stamp duty exemption on your insurance policy?
Stamp duty exemptions must be applied for and are granted by the relevant state or territory government, who will then also issue documentation that confirms the exemption. Contact details for each Australian state and territory government are noted below for your reference.
Insurance companies do not make the decision whether your organisation is entitled to an exemption. Exemptions must be applied for and granted by the relevant statutory body.
If you believe your organisation is entitled to a stamp duty exemption on your insurance policy, please provide your EBM Account Manager with the required documentation well in advance of the expiry date of your current policy to avoid being charged.
This documentation must be current and provided to your EBM Account Manager at the time of purchase or renewal of the insurance policy for the insurer to exempt the stamp duty charge.
If the insurer does not receive valid, up to date documentation confirming exemption eligibility, the insurer will charge stamp duty on all applicable insurance policies. To avoid this from happening, please forward your current documentation to your EBM Account Manager.
Australian State and Territory Contact Information
The following is a summary of the Australian states and territories that allow stamp duty exemptions on insurance policies. Please contact the relevant statutory body or your tax advisor for eligibility criteria and for further information.
|Australia Capital Territory (ACT)|
Stamp duty not applicable to general insurance in ACT
|New South Wales (NSW)|
|South Australia (SA)|
|Northern Terriroty (NT)|
|Western Australia (WA)|
This information has been prepared for information purposes only, and is not intended to provide tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.