Audit Insurance: Why Do I Need It?

No one wants to be audited and we have no reason to suspect you will be. But did you know that the ATO raised an additional $16.9 billion in the 17/18 financial year through increased audit activity?

Data matching capabilities are profound, and with unprecedented access to taxpayer records from both State and Federal agencies, there is an ever-increasing level of audit activity of both compliant and non-compliant taxpayers. Now more than ever you could be at risk of audit activity as the ATO can now specifically target previously unreviewed tax returns. For this reason we continue to offer Audit Shield as part of our suite of services that we can provide to protect your financial health.

The costs and time involved with being properly represented can be quite considerable depending on the circumstances. Even a simple enquiry can require hours of work. With this in mind, our Audit Shield service provides a fixed, cost effective solution to guard against these unbudgeted costs. All professional fees up to a prescribed limit (with no excess) are covered when you engage us in audit activity matters. Our fees, legal fees, bookkeeping fees and other specialist professional advisor fees are covered. The Audit Shield service also provides retrospective cover so all previously lodged returns are included in the coverage.

The list is extensive as to what is covered under Audit Shield. Income Tax, GST and BAS, Superannuation Guarantee, PAYG Withholding, Fringe Benefits Tax, Payroll Tax, Land Tax, Stamp Duty, WorkCover and Self Managed Superannuation Funds (SMSFs) are just a few inclusions of the comprehensive offering. Whether it’s a simple review or a full audit of a group’s lodged returns, we’re here to assist with ensuring you obtain the best outcome. With information provided from our insurer, we’ve received insight that the ATO has placed greater focus on work related expenses, deductions on rental properties, and Super Guarantee this past year, and is only expected to further increase with increased funding and more government departments sharing data to identify any discrepancies.

As an individual, business owner or SMSF holder, we understand that it can feel as though you are continuously bombarded with requests to subscribe, opt-in or donate to various causes, products or services that are available in this modern world. The opportunity we provide you to participate in our Audit Shield service is entirely your decision. However, as it is a service we have experienced first-hand to be effective for our clients, we feel it is important to reiterate to you so that you can carefully consider the benefits of participating. Should you have any questions with regards to this service or how it can benefit you, please do not hesitate to contact your Client Manager.