Summary of minimum professional indemnity insurance requirements for tax and BAS agents

A summary of our minimum professional indemnity (PI) insurance requirements for tax and BAS agents is provided below.

For further information about our PI insurance requirements, please refer to TPB (EP) 03/2010 Professional indemnity insurance for tax and BAS agents.


Amount of cover

The minimum amount of cover that needs to be maintained is based on turnover.


Turnover (excluding GST)

Minimum aggregate amount of cover*
(inclusive of legal and defence costs)


Up to $75,000



$75,001 - $500,000



Over $500,000


* Please note that what is an appropriate amount of cover for you may in fact be more than what is set as the minimum requirement.


Legal/defence costs

The policy must provide legal and defence ‘costs exclusive’ or ‘costs in addition’ amount of cover.


Scope of cover

The policy must include civil liability arising from any act, error or omission in the provision of tax agent and BAS services as defined in the Tax Agent Services Act 2009 (TASA).


Persons covered

The policy must cover:

  • the agent
  • directors, principals, partners and employees who provide tax agent or BAS services on behalf of the agent
  • contractors, if they do not have their own PI insurance cover, then agents must have cover that includes the work of contractors for which the agent is liable
  • any other individuals or entities that provide tax agent or BAS services on behalf of the agent.



The policy must not have the effect of excluding cover for the work of contractors if the result is that there is no cover for the tax agent and BAS services that are provided to the client.

Further, if exclusions in a PI insurance policy undermine the policy objective or remove a minimum requirement, the cover will not be adequate.



You are required to undertake an assessment of your financial situation and ensure that the excess is not set at a level which you cannot meet.

The excess for your PI insurance cover should not exceed 4% of your turnover, unless 4% of your turnover is less than $1,000, in which case the excess cannot exceed $1,000.


Insurance provider

PI insurance cover must be provided by:

  • an APRA approved insurer
  • an insurer who is not APRA approved but otherwise permitted to provide insurance in Australia under the Insurance Act 1973
  • an unauthorised foreign insurer if they are providing insurance in accordance with Part 2 of the Insurance Regulations 2002, or
  • other insurance providers as approved by us.


Retroactive cover (from 1 July 2015)

If you are renewing a PI insurance policy after 1 July 2015, your new policy must provide retroactive cover. This means your new policy must cover you to the earlier of:

  • the retroactive date specified in the current PI insurance policy you are renewing, or
  • the start date of your first PI insurance policy if you have had a series of continuous policies.


Example – retroactive cover

Sally is a registered tax agent and holds a PI insurance policy that she renews every year, and it is due for renewal in August 2015. Sally has continuously held PI insurance since 1 May 2010. Sally needs to make sure that her new policy has retroactive cover to 1 May 2010.


Last modified: 1 October 2014