Stamp Duty Exemption

A stamp duty exemption removes or reduces the state government tax normally added to your insurance premium. In Australia, certain states offer exemptions for small businesses or specific policy types.

Most people don’t realise these exemptions exist. If your business qualifies, you could save a meaningful amount on your insurance costs each year.

NSW Small Business Exemption

New South Wales introduced a stamp duty exemption for eligible small businesses on 1 January 2018. It’s still active today.

Who qualifies:

Your business must be a CGT small business entity, which generally means you carry on a business with aggregated turnover under $2 million (both the previous income year and the current year).

Which policies are exempt:

• Commercial vehicle insurance (vehicles used primarily for business)
• Professional indemnity insurance (excluding medical indemnity)
• Product and public liability insurance
• Commercial aviation insurance
• Crop and livestock insurance (automatically exempt without a declaration)

How it works:

You need to provide a declaration to your insurer or broker each financial year confirming you qualify as a CGT small business entity. Without the declaration, the exemption won’t be applied.

ACT - Fully Abolished

The ACT fully abolished stamp duty on general insurance from 1 July 2016 as part of a broader 20-year tax reform program. If your risk is located in the ACT, you don’t pay stamp duty on insurance at all.

Victoria - Phasing Out Business Insurance Duty

Victoria is abolishing stamp duty on business insurance over a 10-year period, starting from 1 July 2024.

Period	Rate on Business Insurance
Before 1 July 2024	10%
1 July 2024 - 30 June 2025	9%
1 July 2025 - 30 June 2026	8%
1 July 2026 - 30 June 2027	7%
1 July 2027 - 30 June 2028	6%
1 July 2028 - 30 June 2029	5%
1 July 2029 - 30 June 2030	4%
1 July 2030 - 30 June 2031	3%
1 July 2031 - 30 June 2032	2%
1 July 2032 - 30 June 2033	1%
From 1 July 2033	0% (abolished)

Business insurance types covered by the phase-out:

• Public and product liability
• Professional indemnity
• Employers’ liability
• Fire and industrial special risks (ISR)
• Marine and aviation
• Cyber insurance
• Directors and officers

Not covered (still 10%): Personal insurance such as motor vehicle, home, and home contents.

Other States

Queensland, South Australia, Western Australia, Tasmania, and the Northern Territory currently have no specific exemptions or phase-out programs for insurance stamp duty. Standard rates apply.

The Emergency Services Levy in NSW

Worth mentioning alongside stamp duty is the Emergency Services Levy (ESL) in NSW. It’s a separate levy added to insurance premiums to fund fire and emergency services. NSW is the only mainland state that still funds emergency services this way, and when you stack the ESL on top of stamp duty and GST, the total government charges on a commercial insurance premium in NSW can, in some cases, exceed 40% of the base premium depending on the policy type and ESL classification.

There has been ongoing discussion about reform, with the NSW Government having considered moving to a property-based funding model (similar to other states). As at early 2026, no legislation has been passed to change the current system.

Common Mistakes or Misunderstandings

• Not knowing the exemption exists. Many NSW small business owners pay stamp duty on eligible policies simply because they haven’t provided the declaration.
• Forgetting to submit the declaration each year. The exemption isn’t automatic. You need to confirm your eligibility with your insurer or broker each financial year.
• Assuming the ACT approach applies everywhere. Only the ACT has fully abolished insurance stamp duty. Other states still charge it.
• Confusing stamp duty with the Emergency Services Levy. They’re separate charges that both appear on your NSW invoice.

When to Speak to a Broker

If you’re a small business in NSW and haven’t been claiming the stamp duty exemption, or you want to understand how the Victorian phase-out affects your next renewal, your broker can check your eligibility and make sure you’re not paying more than you need to.

Need help?

If you want to check whether your business qualifies for a stamp duty exemption, reach out to Tank Insurance and we’ll make sure you’re not leaving money on the table.

Related Terms

• Stamp Duty - The base government tax on insurance premiums that these exemptions reduce or remove.
• Insurance Premium - Stamp duty (and any exemptions) directly affects the total cost you pay on top of your premium.
• Broker Fee - Your broker can help you claim the exemption and ensure the correct amount is charged.