The ATO starts an income tax audit and asks for proof of deductions and business income. Your tax agent reviews your books, explains key transactions and prepares a structured response with supporting documents.

If you are audited on income tax, insurance may reimburse your tax agent’s fees to prepare and respond, once the audit is notified.

After you lodge your FBT return, the ATO asks for details on car and entertainment benefits. You hire your accountant to gather logbooks and receipts, calculate taxable values and respond to information requests on time.

If the ATO audits your FBT return, the insurance may reimburse accountant fees needed to prepare and respond, up to the specified limit (after excess).

A state revenue office reviews your payroll tax and questions contractor payments and grouping with related entities. Your accountant prepares payroll reports, contractor agreements and written responses, then joins calls with the auditor.

Professional fees for your accountant can be reimbursed when a state revenue office audits payroll tax, if notified in the policy period.

The ATO flags mismatches between your BAS and sales records and sends an audit notice. You engage your tax agent to pull invoices, reconcile GST, answer questions and lodge supporting documents over the next few weeks.

Policy can reimburse your tax agent’s fees incurred to prepare for a notified ATO GST audit, up to your limit (after excess).

You lodge your own tax return without using an accountant or registered tax agent. Months later the ATO audits it, you hire a professional to prepare your response and you try to claim the professional fees.

If your return was not prepared by an accountant or registered tax agent, the audit can be excluded. Your professional fees won’t be covered.

You lodge a quarterly BAS after the due date and the ATO applies failure-to-lodge penalties and interest. Your accountant helps gather records and explain the delay and you ask to claim the penalties and interest charged.

Taxes, interest, fines and penalties aren’t covered. Costs caused by late lodgement, late payment, or late responses can also be excluded.

Two weeks before buying cover, you receive an ATO call and letter saying your business will be audited next month. You then take out cover and try to claim your accountant’s fees for the upcoming audit work.

Not covered if you or your tax agent knew about the audit before cover started. The audit must arise and be notified during the policy period.

The ATO sends a risk review letter asking you to check BAS figures. You hire your accountant to reconcile invoices, tidy records and sanity-check GST, but the ATO has not started a formal audit or investigation.

Risk reviews and routine enquiries aren’t covered. Prep work is only covered when you are legally required to respond to an official audit.