The types of insurance are:
- life insurance
- general insurance (property/risk insured inside South Australia)
- general insurance (property/risk insured outside South Australia)
- compulsory third party insurance premiums
Note: Insurance includes assurance.
Are not-for-profit incorporated bodies exempt?
Not-for-profit incorporated bodies who are exempt from duties and taxes in their own right are not exempt from stamp duty on an insurance policy.
The liability for stamp duty on insurance rests with the insurer. There is nothing to prevent an insurer on-charging their stamp duty liability to a policy holder.
Can the insurer on-charge stamp duty to the policy holder?
For an insurer who carries on insurance business in South Australia, the liability for stamp duty on insurance rests with the insurer.
There is nothing to prevent an insurer on-charging their stamp duty liability to a policy holder.
Reinsurance; who is required to declare the premium?
An insurer that takes on the initial risk can no longer claim an exemption where a risk (or a portion of that risk) is reinsured, and therefore must include that premium as premium subject to duty (unless an exemption or deduction were to apply). If the reinsurer is registered within South Australia, the reinsurer can now claim the premium for the reinsured risk as exempt premium.
Audit and Compliance
RevenueSA conducts routine audits of insurance Statements and insurers. Audits involve verifying the amounts declared, deducted and or exempted in a Statement to source documentation.
What records need to be retained for audit purposes?
You need to retain records necessary to evidence an accurate assessment of the tax liability, including the basis of any apportionment across Australian jurisdictions. Evidence will need to include:
- name and address of the insured party and insurer
- date policy effected
- description of the risk insured
- premium; and
- term of the policy.
Records of duty paid on cancelled policies and of premium refunded must also be retained.
Evidence must be retained for 5 years after the relevant transaction by the lodging party. A maximum penalty of $10,000 applies for failure to retain records.
What legislation is stamp duty administered by?
Stamp duty insurance in South Australia is administered under the following legislation:
- Stamp Duties Act 1923
- Stamp Duties Regulations 2013
- Taxation Administration Act 1996
When contacting us please provide your taxpayer details.
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