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 2002 of 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.

You can find the original article here.

For further information and details of this exemption, please do not hesitate to contact us on (02) 4928 8500.