Chapter 7 of the Duties Act 2001 ("the Act") charges duty on the amount of premium paid on a contract of general insurance.

From 1 July 2002, sections 190(n) and 190(o) of the Act provide exemption from duty for:

• insurance effected by a separate policy in a distinct sum against a claim for public liability;
• insurance in a distinct sum against a claim for public liability included in a package of insurance other than in a domestic policy covering home or contents or both home and contents.

Ruling:

Insurance effected against a claim for public liability means insurance where the insured is provided coverage or protection in respect to legal liabilities to third parties but does not include insurance in respect of product liability, professional indemnity or cover in regard to injury to employees of the insured.

Enquiries in relation to this Revenue Ruling should be directed to the Revenue Advice and Audit Section on telephone 03 6233 5437 or e-mail audithelp@treasury.tas.gov.au. Copies of this ruling may be obtained from our Web site at www.treasury.tas.gov.au/tax and follow the "Revenue Rulings" link.

All rulings must be read subject to Revenue Ruling PUB-GEN-2001-1.



Peter Coe
COMMISSIONER OF STATE REVENUE