Compliance is a crucial issue for all businesses. Examples include GST, BAS, PAYG, superannuation, workers compensation, fringe benefits tax, income tax, and keeping proper records.
Any business may become subject to a government audit, investigation, enquiry or review. These can come through the ATO, or a state government or agency. They can also be very costly if you need to pay professional fees to an accountant involved in the process. In some cases, the costs to a SME from a government audit can amount to tens of thousands of dollars.
This is where audit and investigation insurance comes in. This type of policy provides cover for the costs that can be incurred in a government audit or review, helping to reduce the risk of financial loss to your business.
Even if you’ve been very diligent about compliance, there is always the risk an audit being launched. Make sure to discuss audit and investigation cover with your broker for financial protection against these risks.