Even if your business is fully compliant, receiving a review letter from the ATO can still be a stressful experience.

And in 2025, reviews are happening more often, on things as simple as rental deductions, payroll reporting, or late lodgements. The increased scrutiny means more time spent responding, even when no tax is owing.

This is where audit insurance comes in.

What Is Audit Insurance?

Audit insurance is a type of cover offered by external providers that reimburses you for professional fees if you’re subject to an ATO audit, review, or investigation. That includes your accountant’s time to prepare responses, gather documents, and liaise with the ATO.

It doesn’t cover any tax you might owe, but it can help protect you from the admin costs that often come with being reviewed, even if you’ve done everything right.

While we don’t offer audit insurance ourselves, we think it’s important for business owners to be aware that it exists. Especially now.

Why It Matters in 2025

The ATO has ramped up its compliance activity. Reviews are no longer reserved for serious issues, they’re being triggered by smaller discrepancies too, like:

• Fringe Benefits Tax (FBT) not properly reported
  
  
• Rental deductions outside ATO benchmarks
  
  
• STP mismatches, even when wages are paid correctly
  
  
• Late lodgements, even when there’s no tax payable
  
  

These reviews can take time to resolve, which means more hours spent with your accountant, and potentially more fees.

Should You Look Into It?

It really depends on your situation. But if your business has a complex setup, significant deductions, or you’re in a sector that’s seen increased ATO scrutiny, it might be something worth thinking about.

We’re here to support you through the process, with or without insurance. But in today’s compliance landscape, being prepared is always a good move.