Tax Audit Insurance
Flexible levels of cover up to $50,000
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Cover for audit preparation costs, professional fees, and more
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What is Tax Audit Insurance?
Tax Audit insurance covers accountant’s costs incurred in responding to an audit or investigation by the Australian Tax Office (ATO).
Being audited can be time consuming, complicated and potentially very costly. Tax Audit insurance can help take the stress out of these situations by paying accountant or bookkeeper fees related to an audit. It can have your back if a mistake in your BAS, VAT calculations, or tax return puts you on the ATO’s list. BizCover offers fast, secure, and customisable Tax Audit insurance built for small businesses.
What does Tax Audit insurance cover?
Tax Audit insurance can help small businesses cover professional fees related to an ATO audit. It may cover fees related to common auditing reasons, such as BAS/GST compliance, income and payroll tax, record keeping, superannuation compliance, and self-managed superannuation funds.
Accountants fees
Limited other professional’s fees incurred to responding to a tax audit
Tax agent fees
- Fines or taxes imposed
- Your employee’s time or wages
- Your time or salary or lost opportunities
This is a summary only. To learn more about the Tax Audit cover provided by our insurance partners, please read the policy wordings for limits, exclusions, and terms.
Why is Tax Audit insurance important?
The risk of potential audit is very real for Aussie businesses. A tax audit can be triggered by common events, such as discrepancies in tax returns or unusual financial activity. You could also be selected for audit at random.
Getting audited is not only stressful, but potentially expensive too. You may face additional costs in hiring an accountant or other tax professional to help manage the audit process.
Tax Audit insurance can provide important peace of mind that audit fees will be covered should the ATO decide to audit your business.
Respond to an ATO audit
Cover professional fees
Reduce financial stress during an audit
Let’s cover your small business on the go
Start a quote to see how much you can save and buy online in minutes.
Who needs Tax Audit insurance?
Small businesses that lodge tax returns, BAS and payroll are eligible for Tax Audit insurance unless they are restricted by insurers due to their risk profile, specific business characteristics (such as entity type) or claims history.
Policies can be customised to sole traders, freelancers, and small to medium businesses in many industries, including:
- Management Consultants
- Education Consultant
- Communications Consultants
- Human Resources Consultants
- Business Coaching
- Environmental Consultants
- Content Writers
- Nurses
- Aged Care Support Workers
- Chiropractors
- Occupational Therapists
- Physiotherapists
- Disability Plan Management
- Disability Care
Don’t see your industry? We cover thousands of occupations.
How much does Tax Audit insurance cost?
Tax Audit insurance costs can vary based on your business’ size, risks, insurance requirements and other factors. Every business is unique, and so is the type and cost of its policy.
How is the cost of insurance calculated?
Risks of the industry
Cover level amount
Annual turnover
Number of employees
Claims history
Get cover that grows with your business
You can insure your business with Tax Audit cover limits up to $50,000.
Unsure how much to choose? Think about:
Statutory professional requirements
Cover required by contracts
Worst case scenario claim size
Underinsurance
We know it’s tempting to select a lower level of cover to reduce premiums, but this can leave businesses shocked and insufficiently covered when making a claim.
Ways underinsurance catches business owners out:
Inflation
With inflation, the cost of living and doing business increases. Remember to over yourself, your tools and assets for the rising costs of replacing or covering them, not what you paid for them – you may be surprised at the difference.
Not covering the full cost of your risks
If you select cover levels for less than the value you may be found liable – left out of pocket when it comes to claims time. It’s important to review your risks and determine how much you will need to cover any claim that may come your way.
How is the cost of insurance calculated?
Risks of the industry
Cover level amount
Annual turnover
Number of employees
Claims history
Click here to check industry wise average prices
Get cover that grows with your business
You can insure your business with Tax Audit cover limits up to $50,000.
Unsure how much to choose? Think about:
Statutory professional requirements
Cover required by contracts
Number of employees being covered
Your contract value
Worst case scenario claim size
Underinsurance
We know it’s tempting to select a lower level of cover to reduce premiums, but this can leave businesses shocked and insufficiently covered when making a claim.
Ways underinsurance catches business owners out:
Inflation
With inflation, the cost of living and doing business increases. Remember to over yourself, your tools and assets for the rising costs of replacing or covering them, not what you paid for them – you may be surprised at the difference.
Not covering the full cost of your risks
If you select cover levels for less than the value you may be found liable – left out of pocket when it comes to claims time. It’s important to review your risks and determine how much you will need to cover any claim that may come your way.
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How To Make a Claim Online
We’ll assist you through the claims process & manage the claim directly with the insurer.
Let us know Fill out our
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3 steps to get your biz insured:
- Let us know
Fill out our claims form and provide info to support the claim.
- Receive Extra Support
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- Claims Results
We’ll notify you of the claim outcome.
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Tax Audit Insurance claim example
A beautician received a letter from the ATO that they were to be audited for the 2023-24 period. They engaged their own accountant to assist with the audit and advised their insurer of the circumstances.
The ATO found that the beautician had made some incorrect declarations and identified a tax shortfall after revising the activity statement. They decided not to penalise the beautician, only requiring that the tax shortfall be paid.
The beautician’s insurer reviewed the outcome of the audit and covered $2,230 in accountant’s fees related to it. However, the tax shortfall was not covered, as the amount would have been payable in the first instance had the tax return been lodged correctly.
The provision of the claims examples are for illustrative purposes only and should not be seen as an indication as to how any potential claim will be assessed or accepted. Coverage for claims on the policy is determined by the insurer, and not BizCover.
See How Much Others Have Saved By Purchasing a Policy Through BizCover
Colette
Disability Care Worker from
NSW
Saved
$1,200
on
Public Liability and Professional Indemnity insurance
Andrea
Beautician from
VIC
Saved
$1,500
on
Business insurance Pack and,
Public Liability and Professional Indemnity insurance
Deborah
Cleaner from
VIC
Saved
$3,600
on
Public Liability insurance
Lance
Electrician from
ACT
Saved
$800
on
Public Liability insurance
Stephen
IT Professional from
VIC
Saved
$1,500
on
Information Technology Liability insurance
Linda
Restaurant owner from
NSW
Saved
$1,000
on
Business Insurance Pack and
Public Liability insurance
^ Savings made from January 2024 to April 2025. This information is provided as a guide only and may not reflect pricing for your particular business, as individual underwriting criteria will apply.
See How Much Others Have Saved By Purchasing a Policy Through BizCover
Colette
Disability Care Worker from
NSW
Saved
$1,200
on
Public Liability and Professional Indemnity insurance
Andrea
Beautician from
VIC
Saved
$1,500
on
Business insurance Pack and,
Public Liability and Professional Indemnity insurance
Deborah
Cleaner from
VIC
Saved
$3,600
on
Public Liability insurance
Lance
Electrician from
ACT
Saved
$800
on
Public Liability insurance
Stephen
IT Professional from
VIC
Saved
$1,500
on
Information Technology Liability insurance
Linda
Restaurant owner from
NSW
Saved
$1,000
on
Business Insurance Pack and
Public Liability insurance
^ Savings made from January 2024 to April 2025. This information is provided as a guide only and may not reflect pricing for your particular business, as individual underwriting criteria will apply.
Frequently asked questions
For most businesses, Tax Audit insurance is not a legal requirement. However, you should consider Tax Audit insurance if you run your own business and file taxes for that business.
Yes, business insurance premiums are tax deductible, including Tax Audit cover premiums. Visit the ATO website for a list of common business deductions.
Yes, Tax Audit insurance can cover audits of prior year (historic) tax returns, so long as the audit takes place during the policy period. Tax Audit insurance does not cover audits that began or took place before the policy inception date (when the policy was issued or cover began).
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