Revenue NSW requires premiums under a mixed policy to be separated by insurance type: Type A general insurance attracts 9% of its premium, Type B attracts 5%, and Type C crop and livestock insurance attracts 2.5% for policies taken out on or before 31 December 2017 but is exempt for policies taken out on or after 1 January 2018 (Revenue NSW — Types of insurance; figures checked 1 October 2026). Each separated premium must be assessed at the rate for its own insurance type, rather than applying one blended rate to the whole policy.
What insurance falls into Type A and Type B?
Revenue NSW defines general insurance by a NSW connection. It includes insurance relating to property in NSW, or a risk, contingency or event concerning an act or omission that may, in the normal course of events, occur within or partly within NSW. Car, home and contents insurance are included, while life insurance, a life insurance rider and insurance exempt from duty are excluded.
The general-insurance classifications relevant to the 9% and 5% rates are:
| Type | Revenue NSW classification | Duty treatment |
|---|---|---|
| Type A | Any general insurance other than Type B or Type C | 9% of the premium for that component |
| Type B | Motor vehicle, aviation, disability income, occupational indemnity, and hospital and ancillary health benefits insurance | 5% of the premium for that component |
For a cleaning policy, the actual type of cover matters. Revenue NSW includes occupational indemnity insurance in Type B, but that does not make every cleaner-related policy Type B. Type A remains the classification for general insurance outside Types B and C.
How should the premium be split?
Revenue NSW says a policy may contain life insurance, different types of general insurance and exempt insurance. When that happens, the premium attributable to each type must be separated before the correct duty rate is applied.
- Identify each insurance component using the policy wording and PDS.
- Separate the premium attributable to Type A, Type B and any other classification.
- Identify exempt cover separately rather than treating it as Type A or Type B.
- Apply the rate belonging to each separated component.
For a policy containing both Type A and Type B cover, the Type A component is assessed at 9% and the Type B component at 5%. The 9% rate does not apply to the Type B premium merely because both components appear under the same policy.
Why does the Type C date matter?
Type C includes crop and livestock insurance. Its 2.5% rate is tied to the date on which the policy was taken out:
| Policy taken out | Type C duty treatment |
|---|---|
| On or before 31 December 2017 | 2.5% of the premium |
| On or after 1 January 2018 | Exempt from duty |
Accordingly, the 2.5% rate should not be applied to a Type C policy taken out on or after 1 January 2018. The policy date and the Type C classification both need to be checked.
Where do life insurance and riders fit?
A mixed policy can contain life insurance alongside different types of general insurance. Revenue NSW defines life insurance by reference to 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 is different from a life insurance policy. It is attached to the policy, adds specified events or contingencies to those insured and is subject to the policy’s terms and conditions. Its separate duty rate is 5% of the first year’s premium on the rider.
That rider calculation should not be confused with Type B duty: Type B is 5% of the relevant premium, while the rider rate specifically applies to the first year’s rider premium. Do not infer the treatment of a life-insurance component from these rates.
What should a cleaner check in the policy documents?
- Check the PDS for each cover component and how the premium is allocated.
- Compare the cover descriptions with Revenue NSW’s Type A, Type B and Type C definitions.
- If the split is unclear, ask the insurer or broker to show how the premium was apportioned and which rate was applied to each component.
- Recheck the Revenue NSW guidance and the PDS before relying on the calculation, especially where cover types, exemptions or policy dates may have changed.
This is general information, not financial or legal advice. Check the regulator page and your policy’s PDS for the current treatment of your policy.
Sources
FAQ
Does a mixed policy receive one 9% or 5% duty rate?
No. The premium must be separated by insurance type, and the correct rate must be applied to each separated component.
Is every cleaner policy Type B?
Not automatically. Type B includes occupational indemnity insurance, but Type A covers general insurance that is neither Type B nor Type C. Classification depends on the cover provided, so check the PDS rather than relying on the policy’s general label.
Is the Type C 2.5% rate available for policies taken out after 2017?
No. Type C policies taken out on or after 1 January 2018 are exempt. The 2.5% rate applies to Type C policies taken out on or before 31 December 2017.
Is a life insurance rider calculated in the same way as Type B?
No. Type B duty is 5% of the relevant premium. A life insurance rider has a separate 5% duty rate applied to the first year’s premium on the rider.
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