Tax Audit Insurance for Accountants & Clients | Abacus Australia

Tax Audit Insurance

Tax Audit Insurance That Protects Your Time — and Your Clients'

When the ATO or a state revenue office initiates an audit, review, or investigation, time and costs can escalate quickly. Tax Audit Insurance helps cover the professional fees to prepare responses, gather records, liaise with authorities, and manage the process — so your firm and your clients aren't left out of pocket.

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Who it's for

Cover for Your Practice and Your Clients

Tax Audit Insurance works two ways — protecting your firm's time and offering a genuine value-add to the clients who trust you.

Your Practice

Your Firm

Cover your own professional time and external costs when your practice is subject to an audit or review. Protect your team's hours without passing the burden to clients.

Your Clients

Offer a client policy so they can claim for your professional fees if they're audited — strengthening client relationships and removing those awkward fee conversations when an audit letter arrives.

What it typically covers

Professional Fees Covered End-to-End

When an audit notice arrives, the clock starts immediately. This is what Tax Audit Insurance typically covers during the process.

Professional Fees

Accounting fees to respond to ATO and state revenue audits, reviews, or investigations — keeping your hourly costs covered throughout.

Document Preparation

Preparation of documents, submissions, and correspondence throughout the process — from the initial notice through to resolution.

ATO Liaison

Representation and liaison with the ATO or state revenue office throughout the review — so you can engage with authority with confidence.

External Specialists

Reasonable external specialist costs where required during the review process, subject to policy wording and agreed limits.

Important: Fines, penalties, and tax shortfalls are generally not covered. Tax Audit Insurance covers professional fees only — not any additional tax assessed, interest charges, or penalties imposed by the ATO or a state revenue office.

Common audit triggers

When the ATO Comes Looking

Australian businesses can be reviewed or audited across a broad range of tax obligations. These are the most common triggers for claims.

GST and BAS reviews

Income tax audits

Employer obligations (PAYG/SG)

Payroll tax

Stamp duty

Land tax

Data-matching enquiries

How it works

Simple From Setup to Claim

Four clear steps from adding cover to getting on with the technical work — no insurance headaches.

Add Cover

Choose a limit that fits your firm and client base. We'll help you size it right for your practice.

Audit Happens

Notify us with the authority's letter or review request. We take it from there promptly.

We Support the Claim

PSC confirms cover, outlines documents needed, and manages the claim with the insurer end-to-end.

You Focus on the Work

Get on with the technical response while the policy covers your professional fees throughout.

Why Abacus + PSC

Insurance Built for Accounting Practices

We work exclusively with accountants and professional services firms — so the products, processes, and people actually understand how your practice works.

Built for Accountants

Limits and wording suited to practice realities — not generic SME products that leave gaps where it matters most.

Client-Ready

Simple options to offer audit cover to your clients at onboarding or renewal — a practical value-add that sets you apart.

Claims Advocacy

PSC manages lodgement and negotiations on your behalf, keeping you updated end-to-end without the insurer runaround.

Fast Setup

Streamlined quotes, clear documents, and easy renewals — so adding cover doesn't become another administrative task.

Frequently asked questions

Common Questions About Tax Audit Insurance

Straight answers to the questions we hear most from accounting practices.

Does this replace Professional Indemnity insurance?

No. Professional Indemnity covers advice-related claims arising from professional errors or omissions. Tax Audit Insurance covers professional fees to handle audits and reviews initiated by the ATO or a state revenue office — they serve completely different purposes and should sit alongside each other in your practice insurance programme.

Can I offer this to all my clients?

Yes — set up a client policy and invite clients to opt in at renewal or onboarding. It's a practical value-add that also removes awkward fee conversations when an audit arrives. We'll help you structure it so it integrates cleanly with how you already engage clients.

What documents are needed to make a claim?

The audit or review notice, engagement details, time records, and any supporting correspondence with the ATO or state authority. PSC will confirm the full requirements when you notify us — the process is straightforward once cover is in place.

Is the insured the firm or the client?

Structures vary depending on how you set up cover. Some practices hold the policy with clients included; others arrange separate client policies. We'll structure it to match your business model and how you want to present it to clients at onboarding or renewal.

Does this cover fines, penalties, or tax owed?

No — Tax Audit Insurance covers professional fees only. Fines, penalties, interest charges, and any additional tax assessed as a result of the audit are not covered under this policy. The cover is specifically for the cost of professional time in managing the audit process itself.

Cover the cost of compliance

Protect Your Time and Your Clients When the ATO Comes Calling

Tax audits are time-consuming and unpredictable. Make sure the professional fees don't come out of your pocket.