Marsh identifies big stamp duty refund opportunity
Marsh Australia says insurance customers may be eligible for a big stamp duty refund after the NSW Supreme Court held the impost is not payable by foreign insurers.
The court held in the recent case of Qantas Airways v Chief Commissioner of State Revenue that stamp duty is not payable under the Duties Act on insurance premiums paid to insurers which are not licensed by APRA.
The potential refund applies to insurance policies placed with insurers not licensed as general insurers under the Insurance Act.
In a client briefing paper, Marsh says the outcome of the case means organisations “may be entitled to a refund of stamp duty paid on insurance policies placed with offshore insurers during the period starting five years ago and ending on June 20 2006”.
On that date provisions that were the subject of the Qantas case were amended.
The five-year period is calculated from the date of lodgement of an application being made to the NSW Office of State Revenue (OSR) for a reassessment or refund.
If an application is lodged today, for example, organisations could claim a refund on duty paid from December 15 2003 until June 20 2006.
Marsh says the opportunity applies to “stamp duty paid to the NSW Office of State Revenue but it may also be available in some other Australian states and territories”.
Marsh acknowledges the NSW Commissioner of State Revenue has lodged an appeal and the decision could yet be reversed, but has urged its clients to apply for a reassessment of duty in the event the decision stands.
The broker says it will launch a bulk application for a reassessment to the NSW Office of State Revenue. Marsh executives were not available for comment when insuranceNEWS.com.au called.
The court held in the recent case of Qantas Airways v Chief Commissioner of State Revenue that stamp duty is not payable under the Duties Act on insurance premiums paid to insurers which are not licensed by APRA.
The potential refund applies to insurance policies placed with insurers not licensed as general insurers under the Insurance Act.
In a client briefing paper, Marsh says the outcome of the case means organisations “may be entitled to a refund of stamp duty paid on insurance policies placed with offshore insurers during the period starting five years ago and ending on June 20 2006”.
On that date provisions that were the subject of the Qantas case were amended.
The five-year period is calculated from the date of lodgement of an application being made to the NSW Office of State Revenue (OSR) for a reassessment or refund.
If an application is lodged today, for example, organisations could claim a refund on duty paid from December 15 2003 until June 20 2006.
Marsh says the opportunity applies to “stamp duty paid to the NSW Office of State Revenue but it may also be available in some other Australian states and territories”.
Marsh acknowledges the NSW Commissioner of State Revenue has lodged an appeal and the decision could yet be reversed, but has urged its clients to apply for a reassessment of duty in the event the decision stands.
The broker says it will launch a bulk application for a reassessment to the NSW Office of State Revenue. Marsh executives were not available for comment when insuranceNEWS.com.au called.