General insurance small business exemption update

Revenue NSW has issued a new Practice Note in relation to the general insurance small business exemption, which became available on 1 January 2018.

Brokers with SME clients in NSW need to be familiar with these requirements. The note provides guidance on:

  • the way a small business declaration can be made for the purposes
    of obtaining an exemption from duty for certain types of insurance;
    and
  • accepted practice for intermediaries to receive and retain the small
    business declaration.

To claim the small business exemption for eligible insurance, a small business must provide an insurer with a small business declaration, in a manner approved by the Chief Commissioner to the effect that the person is a small business at the time the contract of insurance is effected or renewed.

The full Revenue NSW Practice Note is available here.

Further information about the small business exemption is available here.