Exemptions

An exemption applies to insurance that is taken out by, or on behalf of:

• a non-profit organisation that has charitable, benevolent, philanthropic or patriotic purposes
• a society or institution whose resources are used for the relief of poverty, promotion of education, defence or any other patriotic object, or for any other purpose which we consider to be charitable.

To apply for this exemption, download, complete and submit the application for exemption from duty.

If granted:

• your exempt status will be reviewed every three years from the date of issue and
• you must tell us of any changes to your organisation that may affect the exemption.

Crop and livestock insurance (general insurance type C) is exempt from duty. Prior to 1 January 2018, insurance duty applied to crop and livestock insurance at the rate of 2.5%.

The exemption only applies to insurance policies effected or renewed on or after 1 January 2018.

• In cases where the policy is effected prior to 1 January 2018, it will remain liable for duty.
• It does not matter when the premium is paid or if the premium is paid in instalments.

As many policies which contain crop and livestock insurance cover multiple risks with differing rates of duty, insurers must apportion premiums between the risks covered in a policy.

Crop insurance is insurance covering loss due to the destruction of, or physical damage to:

• any pasturage or any crop of grain, fruit, vegetables or other plants, where the destruction or damage occurs while the pasturage or crop is being grown
• the product of the pasturage or crop while it is being stored or transported, provided the insurance covers the pasturage or crop while it is being grown.

The definition does not extend to loss due to theft.

• A general exemption applies to insurance of goods carried by land, sea or air.
• In certain circumstances this exemption may cover loss by theft of the product of the pasturage or crop while it is being transported.

Lenders mortgage insurance (LMI) is insurance taken out by a lender to cover loss arising from default by a mortgagor.

• An LMI policy over property in NSW is exempt from insurance duty provided that the premium for that policy was paid on or after 1 July 2017.

Policies of life insurance being group superannuation investment policies that are owned by the trustee of a superannuation plan, which are for the benefit of more than one member of the superannuation plan are exempt from duty.

Insurance covering property of the Crown that is located in New South Wales is exempt from duty.