Exemptions may apply to public liability insurance taken out by a non-profit community organisation for a risk relating to the organisation’s community purpose activities. This exemption applies to:
- public liability insurance cover
- product liability insurance (including legal liability connected with goods or their containers sold or supplied by the insured)
- insurance for directors’ and officers’ liabilities (including legal liability connected with the performance of these roles for the insured).
The exemption does not apply to professional indemnity insurance (which covers legal liability connected with a breach of the insured’s professional duty).
Who can claim an exemption?
Your organisation can claim a public liability insurance duty exemption if:
- it is an incorporated or unincorporated grassroots community non-profit organisation that
- does not operate for the profit or gain of its members
- uses its income and property solely for its principal community purpose and not for distribution to its members
- has rules that state that if the organisation is disbanded, any surplus assets are to be transferred to another community non-profit organisation or applied to a charitable purpose
- it has an organisational and administrative structure and controls its own affairs (trusts are not exempt)
- membership is open to the public
- members give their time voluntarily
- it is formed, and carried on, mainly for one of the lawful community purposes listed below.
Lawful community purposes
| Arts & cultural |
Environment & conservation |
Community, family & youth |
- bands, orchestras
- dance societies
- eisteddfod societies
- local galleries
- local theatre companies
- music festivals
- other performing arts
|
- animal liberation
- conservation and land care societies
- wildlife preservation societies
|
- counselling
- fund-raising groups
- parents and citizens’ associations
- shelters
- support
- volunteer services
|
| Multicultural |
Heritage & historical |
Sporting & recreation |
Craft |
- international societies
- migrant centres
|
- historical societies
- local museums
|
- amateur sporting clubs and associations
- scouts, guides and similar groups
|
|
Who can’t claim an exemption?
If your organisation’s purpose is not listed, but has a similar purpose to those listed above, you can apply for the exemption and we will review your circumstances.
Your organisation cannot claim the exemption if it falls under the following categories:
- government
- public sector
- statutory
- commercial and business organisations, bodies, authorities or trusts
- political or union organisations
- organisations controlled, appointed by or representing or promoting business or government sectors
- organisations that are registered or entitled to be registered as exempt institutions under the Duties Act 2001
- non-profit community organisations with significant business or commercial activities and interests. These are organisations that
- hold a statutory license to conduct a commercial activity (excluding a category 3 game license, bingo centre license, general purpose permit liquor license, restricted club permit liquor license or local authority approval of premises for food preparation and sale or to hold a special event)
- charge for services, participation in activities or attendance at events or offer prize money (other than membership fees, fund-raising activities or activities in pursuit of their main objects)
- have assets with a gross value (i.e. before liabilities) of more than $1 million or gross revenue (i.e. before expenses) of more than $500,000 for a financial year.
If your organisation fails either of the financial tests because it operates on a state, national or affiliated basis, you may apply for a review of your circumstances to determine whether your organisation has a significant business or commercial focus.
What’s not included in gross revenue
When calculating gross revenue, you can disregard:
- revenue from fund-raising activities if they are not the organisation’s main pursuit (e.g. raffles or street stalls held by amateur sporting clubs)
- government grants for community purposes.
Applying for a public liability insurance exemption
Apply for exempt status by completing a Non-profit community organisation insurance duty exemption—Form 8.3 (PDF 225 K).
If approved, we will send you an approval letter. You will need to give this to your insurer to claim the exemption.
Conditions for insurance cover
To be eligible for the exemption, the insurance cover must be provided either:
- under a stand-alone policy (i.e. it provides public liability cover only)
- as part of an insurance package (i.e. the policy covers risks in addition to public liability)
- under a master policy relating to a group scheme.
The premium for the exempt public liability insurance must be separately identified on the premium invoice for the exemption to apply.
For insurance packages and group scheme master policies, a partial exemption applies to the extent that the policy relates to the public liability insurance that is exempt from duty under these proposals.
Insurer requirements for public liability insurance exemptions
Insurers do not have to include the policy in their relevant duty return (to the extent that the policy is exempt from duty) if they sight an exemption letter. If only a partial exemption applies, duty must be paid on the dutiable portion.
