Effective 1 July 2024, certain policies incepting on or after this date can benefit from a reduction in Stamp Duty rate of 10% to 9%; however, this reduction is limited to certain commercial insurance only.
Commercial insurance is defined by the Victorian State Revenue Office as general insurance that does not fall within the following specified classes:
Householders
- Contents
- Personal property
- Arson
- Burglary
- Public liability (separated to Public and Product Liability)
- Domestic Workers’ Compensation (separated to Employers’ Liability)
Commercial Motor
- Motor vehicle insurance (excluding Domestic Motor)
- Includes long and medium haul trucks, cranes, special vehicles, and fleets
Domestic Motor
- Motor vehicle insurance for private use vehicles
- Includes utilities, lorries, motorcycles, private caravans, box and boat trailers
Travel
- Insurance against travel-related losses
- Includes loss of baggage, personal effects, flight cancellations, and overseas medical costs
Mortgage
- Insurance against lender losses due to borrower default on a mortgage
Consumer Credit (CCI)
- Insurance to protect loan repayments on personal loans and credit card finance
Other Accident
- Miscellaneous accident (cash in transit, theft, loss of money)
- All risks (baggage, sporting equipment, guns)
- Engineering (not part of Industrial Special Risks (ISR) or Fire policy)
- Plate glass (not part of packaged policy)
- Livestock
- Pluvius
- Sickness and Accident (benefits for no more than 3 years)
Other
- Trade Credit
- Extended Warranty
- Kidnap and Ransom
- Contingency
Compulsory Third-Party Motor Vehicle (CTP)
- CTP business only
Cyber (Until 31 December 2024)
- First party and third-party coverage for cyber events
Directors and Officers (D&O) (Until 31 December 2024)
- Covers directors and officers for liability from legal actions for wrongful acts
- Includes legal expense coverage
Stamp Duty on premiums paid in relation to contracts of commercial insurance will be abolished over a 10-year period starting with the initial rate reduction effective from 1 July 2024. There will be further reductions of 1% per annum until it is abolished entirely, from 1 July 2033.
Additional Premiums (APs) will follow the rate applicable at the time of the inception date of the original policy. Return Premiums (RPs) will follow the rate applicable at the time the original premium was signed.
Lloyd’s Crystal has been updated to reflect the above information and Velonetic has been provided with updated instructions to minimise any delays in premium processing. If you have any questions or require any further information, please contact the Lloyd’s Tax Department below.
taxdept@lloyds.com