Brokers have been urged to remind their small business clients in New South Wales of the recent stamp duty cut on insurance premiums that could save them 9%.
Beginning in January, the New South Wales government removed stamp duty on commercial motor, occupational indemnity, product and public liability and commercial aviation insurance for businesses with turnovers of less than $2 million.
Rhys Mills, managing director of Solution Underwriting, said that brokers need to ensure that clients seek a small business declaration to access the cuts.
“In order to obtain the exemption, they have to get their client to complete the small business declaration,” Mills told Insurance Business. “The declaration covers policies issued commencing on or after January 01, 2018.”
Mills said that the move allows brokers a touchpoint for both existing and new clients and can help highlight their expertise.
“It is a good thing for them [brokers] to be able to present to their clients and say ‘did you know this exists?’ he said. “Quite a lot of clients might not actually be aware of it so it gives the brokers a good opportunity to get in front of clients and demonstrate that they have knowledge of these changes - and that these changes could directly save the client some money.”
Stamp duty has long been a contentious issue on insurance products with the industry putting pressure on all Governments to reduce or remove insurance duties in a bid to cut underinsurance. Late last year, the Federal Government urged Western Australia, Queensland and the Northern Territory to scrap “inefficient” duties. The New South Wales government also cut stamp duties on crop and livestock cover as well as LMI.
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