Tax Audit Cover for Small Businesses and Individuals
Running a business in Australia comes with numerous responsibilities, and one of the most significant challenges is staying up-to-date with your tax and compliance obligations. Even if your records are accurate and your accounts are in order, the Australian Taxation Office (ATO) or other government agencies can select you for a random audit or review.
When this happens, the process can be stressful, time‑consuming, and expensive — especially when you need assistance from your accountant, bookkeeper, or other qualified professionals. This is where Tax Audit Cover, also known as Audit Insurance, can help.
We provide tailored Tax Audit Insurance solutions designed to protect Australian small businesses, sole traders, and individuals from the unexpected costs of an audit.
What Is Tax Audit Insurance?
Tax Audit Insurance (Audit Cover) reimburses the professional fees you face if the ATO or government agencies audit your tax affairs.
It covers the cost of engaging:
Accountant
Tax Agent
Bookkeeper
Solicitors & Barristers
Financial Advisers
Why Do You Need Tax Audit Cover in Australia?
Many small business owners think accurate books mean no audits — but that’s not always true. The ATO can audit for random checks, BAS or tax return discrepancies, industry benchmarking, GST, PAYG or super reporting, complex structures, or international dealings.
Professional fees to handle an audit can cost hundreds to thousands of dollars. Tax Audit Insurance helps cover these costs so you’re not left out of pocket.
Who needs Tax Audit Cover?
From start-ups to established businesses or family finances, audit insurance provides peace of mind and financial protection.
Small Businesses
sole traders, partnerships, companies, trusts
Individuals
professionals, investors, retirees with complex tax affairs
SMSFs
increasingly reviewed by the ATO
Not-for-profits
with strict reporting obligations
What Does Tax Audit Insurance Typically Cover?
Most policies cover reasonable professional fees for audits — including preparing documents, meeting with auditors, handling ATO correspondence, seeking specialist tax advice, and lodging appeals.
What’s Usually Not Covered?
- Fines or penalties imposed by the ATO
- Additional tax payable
- Deliberate breaches of tax law
- Claims outside the policy period
Benefits of Tax Audit Cover
- Designed for the Australian tax system
- Affordable annual premiums vs costly audits
- Flexible – for individuals and businesses
- Quick, simple claims process
- Expert support when you need it
Get Protected Today
ATO audits can occur at any time — often without prior notice. Don’t wait until you receive that dreaded letter in the mail.
Through our partnership with Agile, you can arrange tax audit insurance quickly and easily online.
Protect your business, your family, and your finances from unexpected audit costs today
Frequently Asked Questions (FAQs)
1. How does Tax Audit Insurance work?
Suppose you are subject to an ATO audit or review. In that case, you notify your insurer, and your accountant or tax agent can bill their professional fees directly to the insurer (up to the policy limit).
2. Does this cover fines or extra tax payable?
No, audit insurance only covers the professional fees associated with managing the audit, not penalties or the tax itself.
3. Can individuals get Tax Audit Cover?
Yes. Even individuals with relatively simple tax affairs may benefit from claiming work-related expenses, property investments, or capital gains.
4. Are SMSFs eligible for audit insurance?
Yes, SMSFs can be covered — and many trustees choose this protection given the ATO’s increased scrutiny of superannuation.
5. Is it tax‑deductible?
In many cases, the cost of tax audit insurance may be deductible as a business expense. Check with your accountant for guidance.