The ACT is set to follow NSW in paying clients entitled to a stamp duty refund following a July ruling of the NSW Court of Appeal.

The court upheld a decision in the case of Qantas Airways v Chief Commissioner of State Revenue that found stamp duty was not payable under the NSW Duties Act on premiums paid to insurers not authorised by the Australian Prudential Regulation Authority before June 20 2006.

These include unauthorised foreign insurers. Stamp duty refund claims estimated at $50 million are expected as a result of the case, with Qantas alone saving $5.1 million.

Representatives of the National Insurance Brokers Association (NIBA) met with the ACT Commissioner last week.

CEO Noel Pettersen told insuranceNEWS.com.au that ACT officials accept their legislation is similar to NSW and “they are looking to process refunds in an effective and timely manner”.

NIBA has helped the NSW Office of State Revenue develop an efficient procedure for making refunds to policyholders and the ACT will employ a similar process.

Mr Pettersen says the ACT meeting was only preliminary and no decision was reached in relation to the preservation of client rights.

NIBA says the outcome of the Qantas case “may have implications for other states and territories” although Tasmania has already indicated that no entitlement exists.