New South Wales Consolidated Acts

DUTIES ACT 1997 - SECT 259

259 What insurance is exempt from duty?

(1) The following insurances are exempt from duty under this Chapter--

(a) insurance covering only property of the Crown in right of New South Wales (including a statutory body representing the Crown in right of New South Wales),

(b) insurance effected by a separate policy in a distinct sum against loss by fire on the tools, implements of work or labour used by any working mechanic, artificer, handcrafter or labourer,

(c) insurance taken out by or on behalf of a non-profit organisation having as one of its objects a charitable, benevolent, philanthropic or patriotic purpose,

(d) insurance taken out by or on behalf of a society or institution for the time being approved for the purposes of this paragraph by the Chief Commissioner whose resources are, in accordance with its rules or objects, used wholly or predominantly for--

(i) the relief of poverty, or

(ii) the promotion of education, or

(iii) any purpose directly or indirectly connected with defence or the amelioration of the condition of past or present members of the naval, military or air forces of the Commonwealth or their dependants or any other patriotic object, or

(iv) such other purpose as, in the opinion of the Chief Commissioner, warrants the society or institution being taken to be a charitable society or institution,

(e) insurance covering mortgages or pools of mortgages acquired for the purpose of issuing mortgage-backed securities,

(f) insurance effected by a contract of insurance issued by a private health insurer, within the meaning of the Private Health Insurance Act 2007 of the Commonwealth, that covers the provision of--

(i) hospital benefits or medical benefits or both, whether or not other benefits are also provided, or

(ii) ambulance services, being services relating to the work of rendering first aid to, and the transport of, sick and injured persons,

(g) insurance effected under the Workers Compensation Act 1987 or the Workplace Injury Management and Workers Compensation Act 1998 ,

(h) insurance effected under the Motor Accidents Act 1988 , the Motor Accidents Compensation Act 1999 or the Motor Accident Injuries Act 2017 ,

(i) insurance of--

(i) a floating vessel used primarily for commercial purposes, or

(ii) goods or merchandise, or the freight of goods or merchandise, carried by land, sea or air,

or both,

(j) redundancy insurance in respect of a housing loan where the sum insured does not exceed $124,000,

(k) reinsurance (being a contract or contracts between two parties by which one party indemnifies the other against liability or payment under a contract or contracts of insurance or reinsurance),

(l) an annuity--

(i) issued, created or sold by a life company,

(ii) purchased by a person from a life company,

(m) policies of life insurance, being group superannuation investment policies owned by the trustee of a superannuation plan for the benefit of more than one member of the superannuation plan,

(n) lenders mortgage insurance, being insurance taken out by a lender against loss arising from a default by a mortgagor, if the premium in relation to the insurance is paid on or after 1 July 2017,

(o) crop insurance that is effected or renewed on or after 1 January 2018,

(p) livestock insurance that is effected or renewed on or after 1 January 2018.

(2) For the purposes of subsection (1) (l) a contract is an
"annuity" if it satisfies the following requirements--

(a) the contract provides for the periodic payment of money to the annuitant in fee for life or for a specified term of years as an annual or more frequent entitlement,

(b) the periodic payment is a sum certain expressed as a dollar amount, but may be varied according to a predetermined formula,

(c) the periodic payments are not derived from the money paid for the contract but are derived solely from the contract and comprise income and not the repayment of capital.