Coverage Improvements

Explicit cover for Policyholder’s professional fees in managing Tax Audits for clients.

Only the Policyholder can submit claims.

Payroll Tax Returns now covered even if not prepared by a Tax Agent.

Professional Fees covered for up to 18 months post-audit start, with a 20% sub-limit for objections and appeals.

Exclusions & Cyber
Narrowed exclusions for broader coverage.

Introduction of a standalone Lloyd’s-style cyber exclusion for clarity.

Definitions Updated
Expanded “Tax Audit” to include non-lodgement investigations, Compliance Obligations, and workers’ compensation wage audits.

GST now addressed via input tax credit position (removed from “Insured Amount”).

New definitions for Failure to Take Reasonable Care, Intentional Disregard, and Recklessness.

Shortfall Audit Clarification
Cover applies where ATO penalties are 25% or less, consistent with ATO classifications.

Claims & Conditions
Removal of 60-day notification requirement.

Clearer GST treatment in settlements.

New provisions for Governing Law, Other Insurance, and cover commencement for new clients

Overall: These updates deliver clearer language, improved consistency, and broader scope of cover to meet contemporary regulatory and market standards.