JobKeeper audits and reviews ARE Covered by Audit Shield

29 Apr JobKeeper audits and reviews ARE Covered by Audit Shield

Audits in respect of any government benefits or entitlements have always been an exclusion in most Tax Audit Insurance policies, and certainly has been in Audit Shield.  The logic behind this is that a Tax Audit insurance policy covers Tax Audits in respect of validating, substantiating, justifying or supporting whether or not you owe more taxes or duties than you declared in a lodged return.  Government benefits and entitlements, on the other hand represent discretionary incentives being offered up by governments to encourage certain behaviour.  They are not compulsory and not everyone is entitled to these, and the process involves an application process, and then a possible audit of the eligibility, entitlement, purpose or use of that benefit or entitlement.

Covid-19 has challenged nearly every aspect of our lives, both personally and in business.  The government has taken unprecedented steps to try and manage the issues of a health crisis and an economic crisis at the same time.  The support packages are being announced in concept with the specific details being built two to three steps behind the concept and announcement.  This is not a criticism, but more of a statement with respect to a show of dynamic and action driven responses in a time where that is required by both Federal and State governments.

Accountancy Insurance has been working with our underwriter, Vero Insurance, over the previous weeks to try and see what we can do about all of this within the offering, to support the accountants and their clients through this.  Any delay so far has been caused by detail only recently being released as to how these programs are going to be administered and more importantly for us how we think they are going to be reviewed or audited in the future.

We are pleased to announce that we are putting in place an endorsement to our policy which will include JobKeeper audits and reviews.  This endorsement will extend not only to renewals but will be automatically applied to all current and existing policies.  You do not need to do anything to have this endorsement added to your current policy or renewal policy.  This endorsement is being added at no additional cost in premium.