Tax Agent Professional Indemnity Insurance

Yes. The Tax Practitioners Board (TPB) requires all registered tax agents and BAS agents to hold adequate PI insurance. Minimum cover is tiered by your practice's annual turnover (excluding GST): up to $75,000 turnover requires $250,000 minimum, $75,001–$500,000 requires $500,000, and over $500,000 requires $1,000,000. Tax agents with a tax (financial) advice services condition have higher requirements starting at $2,000,000. Check the TPB website for current requirements.

Both are regulated by the TPB, but tax agents provide broader services including tax return preparation and tax advice. BAS agents are limited to BAS services including GST, PAYG, and related lodgements. If you hold both registrations, your PI policy must cover all registered activities. We check your policy against TPB requirements for all your registrations.

Operating without adequate PI cover is a breach of the Tax Agent Services Act. The TPB can suspend or terminate your registration, meaning you cannot legally practice. Additionally, if a client sues you without PI cover, you're personally liable for all costs and damages, which can be financially devastating.

Generally, PI insurance covers your legal defence and compensation payable to clients who suffer loss from your negligent advice. If your error caused a client to incur ATO penalties and they claim against you, your PI policy would typically respond. However, it won't cover penalties imposed on you personally for tax agent misconduct.

Premiums depend on your services, turnover, claims history, and policy limits. Tax agents with broader service offerings (SMSF advice, audit work) typically pay more than those doing basic tax returns only. We compare multiple insurers to find competitive rates for your specific practice profile.