Stamp Duty

Below are details of what the Stamp Duty changes are, what you need to do, amendments to our systems and when the changes will take effect:

WHAT ARE THE CHANGES

  • The NSW Government is introducing a Stamp Duty exemption for small businesses in NSW with an aggregate turnover of less than $2m. (Small business is defined under s259A of the Duties Act 1997)
  • The exemption applies to public and product liability insurance on New Business and Renewal policies incepting on or after 1 January 2018.

WHAT YOU NEED TO DO

  • You will need to obtain a declaration from the Insured confirming that they are a small business (with aggregate turnover of less than $2m) at the time that the insurance is effected or renewed.  View the sample template declaration provided by the ICA, which includes guidelines explaining how to sign this declaration.
  • The declaration will need to be kept by you for 7 years and made available to Calibre Insurance if required.
  • A new declaration will be required for each policy period of insurance.
  • You will need to select the Stamp Duty exemption field and confirm a small business declaration has been obtained from the insured on Calibre Insurance quoting platforms when quoting for policies incepting on or after 1 January 2018. System changes will be effective from 24 November 2017. Please see below for details on changes to the quoting platforms.

SYSTEMS INSTRUCTIONS

HOW TO APPLY THE EXEMPTION TO SCTP

The following changes will be made to the Steadfast Client Trading Platform (‘SCTP’) and are applicable to the Public and Products Liability section on Calibre SCTP Business Package Insurance:

  1. The current Stamp Duty Exempt field will be utilised under the Insured details:
    1. If selected ‘Yes’, from 25 November the exemption box will default to ‘NSWSmallBus’ and no Stamp Duty will be applied for any relevant policies to be incepted or renewed on or after 1 January 2018. Prior to this time you will manually need to complete this field.
    2. If an Insured is exempt from NSW Stamp Duty for reasons other than the NSW Small Business exemption (i.e. Charity) the applicable number should be entered into the Exemption No. field.
  2.  Help text will be available regarding the need for a declaration and legislative requirements on the system.

For Renewals

On renewal, the Stamp Duty Exempt field will be defaulted to the previous term’s selection and if ‘Yes’ is selected a new declaration will need to be provided from the Insured.

For Mid-Term Adjustments

Whilst the SCTP will allow for changes to the NSW Small Business Stamp Duty exemption field for MTA’s, these will be declined and not accepted by Calibre Insurance.

SVU Screen shot

What happens if the policy applies across multiple states?

The exemption will only be applied to the locations in NSW and not the other states.

HOW TO APPLY THE EXEMPTION ON CALLIBRATE

The following changes will be made to Callibrate, our Sunrise platform and are applicable to:

  • The Public and Products Liability cover section on Calibre Steadfast Business Package Insurance
  • The Broadform Liability section on Calibre Business Package Insurance.

On the Policy Details page under Applicant Details sub section, after the “Trading As” question and text box, a new question will be added regarding the “NSW Small Business Stamp Duty Exemption”

  1.  Options of “Yes” & “No” (N.B. one option must be selected)
  2.  If “Yes” is selected there will be a tick box question will appear and must be checked for no Stamp Duty to be charged:

    “The applicant is claiming the small business stamp duty exemption and I confirm that I have received a small business declaration from the applicant for this period of insurance, which we will retain for 7 years”

The NSW Small Business Stamp Duty Exemption field will only be visible and editable for new business and renewals and not MTA’s.

For Renewals

The Stamp Duty Exemption field will be defaulted to the previous term’s selection. If ‘Yes’ is selected, the tick box question must be checked and a new declaration will need to be provided from the Insured.

What happens if the policy applies across multiple states?

Stamp Duty will be applied to the primary situation location and the exemption will only be applied if this is in NSW.

WHERE TO GO FOR MORE INFORMATION

Contact your Development Manager.

Find out more details on the exemption and  relevant 2017 budget faq’s.