Revenue NSW’s Types of insurance sets Type A duty at 9% of the premium and Type B duty at 5% (figures checked 1 October 2026). For Type C crop and livestock insurance, the same Revenue NSW page says 2.5% applies only to policies taken out on or before 31 December 2017; all policies taken out on or after 1 January 2018 are exempt from duty.
What are the Type A, Type B and Type C duty rates?
| Insurance type | What it covers | NSW insurance duty |
|---|---|---|
| Type A | General insurance other than Type B or Type C, such as home and contents insurance | 9% of the premium |
| Type B | Motor vehicle, aviation, disability income, occupational indemnity, and hospital and ancillary health benefits insurance | 5% of the premium |
| Type C | Crop and livestock insurance | 2.5% for policies taken out on or before 31 December 2017; exempt for policies taken out on or after 1 January 2018 |
Important Type C rule: The 2.5% rate is tied to the date the policy was taken out. It does not apply to crop or livestock policies taken out on or after 1 January 2018; Revenue NSW says those policies are exempt from duty.
What insurance is classified as Type A?
Type A covers general insurance other than Type B or Type C. Revenue NSW describes general insurance as insurance relating to property in NSW, or to a risk, contingency or event concerning an act or omission that may occur within or partly within NSW in the normal course of events.
General insurance includes car, home and contents insurance. A home and contents policy therefore fits Type A unless it falls into another applicable category.
The Type A rate is not a catch-all rate for every policy. General insurance does not include life insurance, a life insurance rider or insurance that is exempt from duty.
Which policies are classified as Type B?
Type B has a duty rate of 5% of the premium and includes:
- motor vehicle insurance;
- aviation insurance;
- disability income insurance;
- occupational indemnity insurance; and
- hospital and ancillary health benefits insurance.
The classification depends on the type of cover, not simply the insurer or product name.
Why does Type C depend on the policy date?
Type C covers crop and livestock insurance, but its duty treatment changed on 1 January 2018:
| Type C policy date | Duty treatment |
|---|---|
| Taken out on or before 31 December 2017 | 2.5% of the premium |
| Taken out on or after 1 January 2018 | Exempt from duty |
That date distinction is the key qualification. A Type C description alone does not mean the historical 2.5% rate still applies.
What happens when one policy contains different types of insurance?
A policy may contain life insurance, different types of general insurance and insurance exempt from duty. When that happens, Revenue NSW says the premium must be apportioned.
The premiums relating to each insurance type must be separated, and the correct duty rate must be applied to each part. Applying one rate to the whole premium could therefore produce the wrong duty calculation.
How are life insurance and riders treated?
Life insurance is separate from the three general insurance types. It covers insurance or assurance of a life or lives, or an event or contingency relating to a person or group whose principal residence is in NSW when the policy is issued.
A life insurance rider attached to a policy is also treated separately. It is not itself a life insurance policy and attracts duty at 5% of the first year’s premium on the rider. That first-year basis is specific to the rider treatment and should not be confused with the Type B premium rule.
What should a business check before relying on these rates?
This is general information, not financial or legal advice. Check the Revenue NSW regulator page and your policy’s Product Disclosure Statement before relying on a particular classification or rate. For a policy containing several types of cover, confirm how the premium has been separated for duty purposes.
Sources
FAQ
Is Type C insurance still charged at 2.5%?
No. The 2.5% rate applies only to crop and livestock policies taken out on or before 31 December 2017. Policies taken out on or after 1 January 2018 are exempt from duty.
Which insurance is included in Type B?
Type B includes motor vehicle, aviation, disability income, occupational indemnity, and hospital and ancillary health benefits insurance. Its duty rate is 5% of the premium.
What should happen if a policy contains mixed insurance types?
The premium must be apportioned. Revenue NSW says the premium for each insurance type must be separated and the correct duty rate applied.
Does every insurance policy pay Type A duty at 9%?
No. Type A covers general insurance other than Type B or Type C. Life insurance, life insurance riders and insurance exempt from duty are outside that general insurance category.
How is a life insurance rider rated?
A rider is not a life insurance policy. Revenue NSW says it has a separate duty rate of 5% of the first year’s premium on the rider.
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