We offer our clients audit insurance because audits, reviews and investigations are unfortunately a fact of life and particularly given that more sophisticated data matching is occurring each year.
What are random tax and government audits?
Audits, reviews and investigations are conducted by the Australian Taxation Office (ATO) and other state and federal government agencies to ensure compliance with various tax and legislative requirements. These include:
- Income tax;
- Land tax;
- Payroll tax;
- Goods & Services Tax;
- Fringe Benefits Tax;
- Record keeping / substantiation;
- Workers Compensation;
- Employer obligations including Superannuation Guarantee;
- Self Managed Superannuation Fund compliance; and
- others (Fuel Tax Credits, Wine Equalisation Tax, etc, etc).
How likely am I to get a random audit, review or investigation?
The ATO, along with other federal and state agencies, continues to announce significant increases in their audit activity. Now more than ever, individuals, businesses, trusts and Self-Managed Superannuation Funds are at risk of being selected for a random audit or review.
What are the costs involved with a random audit, review or investigation?
That depends. If you handle the contact with the ATO or other agency yourself, possibly nothing. However, depending on your situation, you may need to be properly represented in these matters which can come with a considerable price tag depending on the length of time involved and the complexity of what needs to be done. Sometimes, even the simplest enquiry can require hours of work. Where the audit, review or investigation concerns multiple years or multiple entities, it’s possible to incur thousands of dollars in accounting and legal fees very quickly.
How can I protect myself from these unexpected fees?
We offer audit insurance that provides for the payment of the professional fees incurred as a result of you being selected for an audit, review or investigation by the ATO or other government body. That means, should you be selected for audit, you can immediately receive professional help and not stress about the associated costs.
What costs are covered?
The insurance covers you for all professional fees up to a prescribed limit (with no excess) when responding to, or representing you in an audit, review or investigation. These include not only our fees, but also legal fees, bookkeeping fees and specialist professional advisor fees (e.g. quantity surveyors, valuers, and actuaries).
Who is covered?
Every client can take advantage of this offering. Different levels of coverage exist for:
- salary and wage earners;
- businesses or business groups;
- Self-Managed Superannuation Funds;
What do I need to do to take out a policy?
Please contact us for an information pack or to discuss your particular needs. We’re always happy to help.