Tax audit insurance protects Australian businesses from costly professional fees during audits, ensuring financial stability and peace of mind.

What is Tax Audit insurance?

Tax audit insurance is a specialised form of business cover that reimburses the professional fees incurred when responding to an audit, review, or investigation by the Australian Taxation Office (ATO) or other government revenue authorities. It does not cover any tax liabilities, fines, or penalties—but it does cover the often substantial costs of engaging accountants, bookkeepers, and legal advisers during the audit process.

Audits can be triggered randomly, even when returns are accurate and compliant. With the ATO’s increasing use of data matching and artificial intelligence, businesses of all sizes—especially SMEs, sole traders, and SMSFs—are more likely to be reviewed. The financial burden of professional representation can easily reach $5,000 to $10,000 or more, making audit insurance a valuable safeguard.

What does Tax Audit insurance cover?

Typical coverage includes:

• Accountant, bookkeeper, and legal fees
• Costs for preparing and presenting documentation
• Representation during formal interviews
• Support for audits of BAS, GST, income tax, FBT, payroll tax, superannuation, and workers compensation

Exclusions generally include:

• Tax liabilities, fines, or penalties
• Audits triggered by fraud or deliberate non-compliance
• Costs for work that should have been completed prior to the audit

For many businesses, tax audit insurance is a low-cost way to protect against high-cost events. Premiums typically range from $100 to $500 annually for SMEs, depending on turnover and coverage limits.

In short, tax audit insurance is a practical tool for financial resilience. It allows businesses to engage expert support without worrying about the cost, ensuring audits are handled professionally and efficiently.

Introducing AuditCover

We've partnered with AuditCover as our Tax Audit Insurance partner.

AuditCover is a trusted way to offer tax audit insurance – simple to implement, easy to manage, and built to protect you and your clients from unexpected ATO costs.

Designed for Accountants

Some of the key features that make AuditCover perfect for Accountants are:

• An easy to use online platform that makes it simple
• Connects with existing software (MYOB, Xero, etc.)
• Fewer administrative obligations
• Direct client coverage
• Supported by CPA, NTAA & IPA

Want to learn more?

For more information, including a 2-minute walkthrough video showing you exactly how AuditCover works, visit the Auditcover website.