(Please scroll down the webpage reading & completing relevant fields & questions. A copy of this entire Application will be emailed to you, with a ‘Reference Number’, once you click the ‘PROCEED’ tab below. If you click the ‘CANCEL’ tab below, no record of what you have entered will be retained.)
WHAT ARE THE BENEFITS?
Most Government Agencies and business entities that administer various forms of taxes, duties, workers compensation or superannuation funds and contributions operate on a ‘self assessment’ approach whereby documents lodged are accepted at face value and can randomly be selected for subsequent audit. In addition, various Government Agencies and business entities undertake compliance audits to ensure various parties are operating correctly under various Acts etc.
There’s also an enormous amount of data matching of information received from numerous Government Agencies and business entities against what has been declared on various lodged documents .
The chances of being subjected to a ‘desk’ audit (typically sorted by completing questionnaires and supplying supporting documents) or a ‘field’ audit (where the Government Agency visits your premises or the premises of your accountancy firm) are on the increase. The chances of being subjected to a ‘desk’ audit (typically sorted by completing questionnaires and supplying supporting documents) or a ‘field’ audit (where the Government Agency visits your premises or the premises of your accountancy firm) are on the increase.
Having your affairs in order isn’t immunity from being selected for an audit.
Professionally preparing for and responding to an audit can substantially lower the risk of fines and penalties, especially if any errors are discovered in information previously declared and volunteered upfront.
Your accountant’s fees to assist with the audit process and response can be significant. Audit Insurance covers these costs up to the sum insured you select (refer below for guidance).
As Audit Insurance premiums are tax deductible, having Audit Insurance in place delivers tremendous ‘peace of mind’ and ‘financial comfort’ knowing that your cash flow won’t be impacted by an unexpected government audit.
WHAT’S INCLUDED AND EXCLUDED?
Please note that ‘What is included?’ and ‘What is excluded?’ needs to be read in conjunction with ‘What are your obligations?’ below.
The following is a summary only.The complete Audit Insure Policy Wording can be found here.
Included? Professional Fees incurred (up to the selected ‘shared’ sum insured – refer below) to manage any audit initiated by a Government Agency or business entity on any previously lodged document or a compliance audit that arises during the Period of Insurance. Professional Fees incurred must be fair & reasonable for the type of audit being conducted. The ‘Period’ is the 12 month period from the date of acceptance.
Excluded? (1) Where a document has been prepared or lodged recklessly or fraudulently; (2) A required document is lodged more than 3 months outside the prescribed date; (3) Any verbal or written advice or notice of a pending audit has already been received by you or your advisers; (4) Additional Professional Fees incurred because you have failed to maintain and retain proper records, as stipulated by the various Government Agencies and non-government business entities you deal with; (5) Any activity that involves the maintenance of any operating licenses, memberships, registrations, workplace practices, regulatory or industry processes and the like; (6) Education, training, implementation etc., due to a change in government or industry policies, regulations and by-laws; (7) An audit that relates to the deduction, rebate or claim for tax or duty relief arising out of a mass marketed product or scheme unless the product or scheme has received prior written approval from the relevant Government Agency; (8) Activities involving money laundering, failure to declare foreign income or the use of trusts, tax havens or the like to avoid tax obligations; (9) Any amended assessments, fines or penalties imposed; (10) Professional Fees incurred for any legal proceedings taken against you or initiated by you; (11) You have entered into any form of bankruptcy, administration, receivership, liquidation, insolvency (voluntary or otherwise), winding up, the registering a company or a similar process; (12) where You are not fully compliant and registered with relevant Government Agencies or business entities; or (13) where the audit is to purely substantiate a refund of tax or duty.
WHAT LEVEL OF SUM INSURED IS BEST?
No two situations are identically the same, so it’s impossible to provide a definitive answer.
The selected sum insured is shared by the ‘Names to be insured’ listed below (and is inclusive of GST). As a general guide, the more names listed, the higher sum insured recommended.
Below is purely a guide. Client Groups can select a sum insured that best suits their collective exposure.
For Individuals and Self Employed of same immediate family
For Client Groups consisting of same immediate family Individuals, Trust, SMSF, common majority owned business entities, etc.
ACCOUNTANCY FIRM
NAMES TO BE INSURED
Type in the names of any individuals (direct family members only), trusts, super funds, business & trading entities*, association, not for profit organisations, etc., that may be exposed to an audit.(* Entities must be common majority owned, i.e., greater than 50%.Where you hold a minority interest, you’ll need to get the majority owners to take out separate insurance cover.
Please place a ‘comma’ after each name to be insured.
SHARED SUM INSURED
The 'shared' Sum Insured is the amount shared by the 'Names to be insured' (refer above) in the event of one or more audits occuring during the Period of Insurance.
The $ amount after the 'shared' Sum Insured is the annual insurance premium, which includes GST & Stamp Duty.
Individual Options (as per above) $5,000.00/$165.00 $10,000.00/$200.00 $15,000.00/$285.00
SMSF $10,000.00/$285.00
Client Groups Options (as per above)
PAYMENT OPTIONS
Name on credit card: Credit card number: Expiry date: / Amount: $ CVC: (For Amex, 4 digit security number on front right corner and for others, 3 digit security number on reverse side of the credit card)
CONTACT DETAILS
SIGN OFF
What are your obligations? Audit Insurance is for individuals, sole traders, self managed super funds, trusts, partnerships, trading entities, associations, organisations and the like who, in the ordinary course of their daily activities, want to be covered in the event of a totally random and unexpected audit by a Government Agency. It isn't for those who encounter fresh circumstances that will likely or knowingly increase the risk of being audited by a Government Agency and is the motivation to suddenly seek Audit Insurance protection.
Is the insurance premium tax deductible? Yes. Who’s the insurer? QBE Insurance (Australia) Limited (‘QBE’), Level 6, 2 Park Street Sydney NSW 2000. Why should we consider participating in this cover? Irrespective of how well your financial affairs are managed, you are not immune to being selected for an audit. With Government Agencies and business entities increasing surveillance to ensure parties are compliant and meeting their obligations, the chances of being audited are high. Also, few clients fully appreciate the amount of time required to prepare for an audit so that any irregularities can be volunteered upfront, thus reducing or avoiding any fines & penalties that may be imposed. For a nominal amount, you can be financially protected for what is typically an unexpected and unbudgeted cost. What if we don’t want to accept this offer? The decision to accept is entirely yours. You are under no obligation to do so. Subject to ‘What’s covered?’, ‘What’s excluded?’ and 'What are your obligations?', if you accept this offer, any professional fees incurred, up to the Shared Limit, will be paid by QBE. If you don’t accept this offer, you will be responsible for payment of the professional fees incurred. When does the audit insurance cover commence? Cover commences when we receive this Client Acceptance Form and we have received and processed your payment. Once processed, we’ll email your Tax Invoice / Insurance Certificate to the email address you have provided. What if we aren’t happy with the service? There are several parties that can assist. There’s your accountancy firm; Audit Services Pty Ltd (1300 595 615 or [email protected] ); Underwriting Australia Pty Ltd, that manages this specialist audit insurance cover on behalf of (QBE 1300 595 615 or [email protected]); and QBE (02 8275 9999 or [email protected]).
Privacy
New privacy legislation took effect on 21 December 2001. The legislation regulates the way private sector organisations can collect, use, keep secure and disclose personal information. QBE has developed a privacy policy which explains what sort of personal information we hold about you and what we do with that information. A copy of the brochure may be obtained from any QBE or from www.qbe.com.au.
By clicking ‘PROCEED’, you are acknowledging that you have read & understand the ‘Sign Off’ section. If there are any aspects you are not sure of, click ‘REJECT’ and contact us to further discuss.
Please note, once you click ‘PROCEED’, a copy of this online application will be sent to us & a copy emailed back to you for your records including a ‘reference number’. If you need to further communicate with us, please use the ‘reference number’ contained in our confirmation email.
Also note that cover doesn’t commence we have received & processed your payment. Once processed we’ll email your Tax Invoice / Insurance Certificate to the email address you have provided.
If you click ‘CANCEL’, all data entered will be deleted from the system and no copy will be retained by us.