From 1 January 2018, certain small businesses in NSW are exempt from paying stamp duty on their public liability cover, commercial vehicle insurance and occupational indemnity insurance.
Unfortunately, the exemption relating to occupational indemnity insurance excludes medical indemnity Insurance so stamp duty is still payable on the Avant Professional Indemnity Insurance Policy and Practice Medical Indemnity insurance if a healthcare professional is covered by the policy.
What is a small business?
A small business is defined as an individual, partnership, company or trust that is carrying on a business with an aggregated turnover of less than $2 million (as defined in the Duties Act 1997 (NSW)).
Aggregated turnover is the annual turnover plus the annual turnovers of any business entities that are your affiliates or are connected with you.
The exemption will apply to the following types of Avant insurances:
Where the exemption does not apply, stamp duty is payable on the premium, including GST.
You must be a small business as of the time the policy commences or is renewed, and Avant will require you to provide a declaration that they are a small business under section 152-10 of the Income Tax Assessment Act 1997 (Cth).
Penalties for false declarations
If you claim a small business exemption you are not entitled to, a penalty of up to $11,000 for an individual and $55,000 for a corporation could be imposed.
In this case, you may also be required by the insurer to pay an amount equal to the duty, together with any interest or penalty tax payable. The insurer may recover this amount as a debt if the amount is not paid.
If you would like more information please call our Member Services team on 1800 128 268 or contact Revenue NSW to help to determine your eligibility.
Don’t have Avant Business Insurance?
If you hold a Practice Medical Indemnity Insurance Policy, you are eligible to apply for Avant’s Business Insurance.* This flexible insurance allows you to select the right cover for your practice – meaning you only pay for the cover you need.
This cover protects the practice against loss or damage to the practice’s property, caused by unforeseen or unexpected events such as fire, storm, accidental or malicious damage. Avant Business Insurance also offers protection against other liabilities practices face, as well as cover against loss of revenue, income or profit.
# IMPORTANT: The Practice Medical Indemnity Policy is issued by Avant Insurance Limited, ABN 82 003 707 471, AFSL 238 765. This policy is available at www.avant.org.au or by contacting us on 1800 128 268. Practices need to consider other forms of insurance including directors’ and officers’ liability, public and products liability, property and business interruption insurance, and workers compensation.
*IMPORTANT: Avant Insurance Limited ABN 82 003 707 471, AFSL 238 765 arranges Avant Business Insurance as agent of the insurer Allianz Australia Insurance Limited ABN 15 000 122 850, AFSL 234 708. The information provided here is general advice only. You should consider the appropriateness of the advice having regard to your own objectives, financial situation and needs before deciding to purchase or continuing to hold a policy with us. For full details including the terms, conditions, and exclusions that apply, please read and consider the policy wording and PDS, which is available at www.avant.org.au or by contacting us on 1800 128 268.
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