1 July 2018 - from this day, certain types of insurance for small businesses are not liable to duty.
Did you know you are recognised as a small business if you are an individual, partnership, company or trust that is carrying on a business and, that has an aggregated turnover of less than $2 million?
This aggregated turnover includes your annual turnover, plus the turnovers of any business entities that are your affiliates or are have a connection.
The exemption will apply to the following types of insurance:
Commercial vehicle insurance – being motor vehicle insurance for a vehicle used primarily for business purposes.
Commercial aviation insurance - being aviation insurance for an aircraft used primarily for business purposes.
Occupational indemnity insurance – insurance covering liability arising out of the provision by a person of professional services or other services (other than medical indemnity cover within the meaning of the Medical Indemnity Act 2002of the Commonwealth).
Product and public liability insurance – insurance covering liability for personal injury of property damage occurring in connection with a business or arising out of the products or services of a business.
To ensure that a policy be exempt, the insured must be a small business as at the date the policy is effected or renewed, and the insurer must have a small business declaration.
If your insurer does not have a small business declaration, then the policy is liable for duty.