“While a bit short on detail, this announcement is obviously good for our clients because it will free up some cash in the farm budget,” Managing Director John van der Vegt said.

“We hope it will also help agriculture in general because it recognises the fact that stamp duties on insurance policies increases the incidence of under-insurance and non-insurance among farmers,” he said.

The NSW Government also announced the abolition of insurance stamp duty for small business (turnover less than $2m) on a range of specific policies including commercial motor vehicle, professional indemnity and product and public liability insurance.

This announcement follows Victoria’s commitment to remove the current 10% stamp duty on agricultural insurance products making it more affordable for farmers to cover crops livestock and machinery.