At any given time, the Australian Tax Office can exercise its right to subject a business to a random tax audit. This is where Tax Audit Insurance comes into play, offering a shield of protection against the financial strain and stress that audits can bring.
Tax Audit Insurance, also known as Audit Insurance or Tax Audit Protection, is a specialised insurance policy designed to cover the costs associated with a tax audit or investigation by the Australian Taxation Office (ATO) or other government agencies. This coverage ensures that individuals and businesses are financially prepared to respond to audit-related expenses, such as professional fees, legal advice, and potential fines or penalties.
Financial Security: It provides peace of mind by covering potentially substantial audit-related expenses, ensuring that you won't face a crippling financial burden.
Professional Assistance: Access to experienced professionals who can guide you through the audit process, increasing the likelihood of a favorable outcome.
Legal Protection: Protection against legal costs and potential fines, safeguarding your financial interests.
Timely Resolution: Speedy resolution of tax audit issues, reducing stress and minimising disruption to your personal or business affairs.
Cost-Efficient: It's a cost-effective solution compared to paying out-of-pocket for audit-related expenses.
Tax audits can cover a multitude of areas, including, but certainly not limited to BAS/GST compliance, FBT, Income and payroll tax, Work Cover and Superannuation compliance. The potential exposure to a business for a legislated audit is very real, and understandably so. It is often something that is not budgeted for, especially in the SME space. Tax audits are far from cheap - it is not uncommon for a small business to have audit expenses upwards of $20,000.
How would this effect your company's cash flow? For many businesses, it may be crippling. It's worth noting that the Tax Commissioner has estimated that up to 15% of all SME’s will be subjected to some form of taxation audit. So, it's not so much a case of if, but when.
Tax Audit insurance will cover your businesses fees for costs associated with Commonwealth/State Government required audits and official investigations. Furthermore, tax audit products may extend to cover audits of the business directors tax returns.
Tax Audit Insurance in Australia typically covers various expenses related to tax audits conducted by the Australian Taxation Office (ATO) or other government agencies. While specific coverage can vary between insurance providers and policies, here are the common items covered in Australia.
Coverage for the fees charged by accountants, tax professionals, or legal experts hired to assist during the audit.
Protection against the expenses incurred if legal representation becomes necessary during the audit process.
Reimbursement for costs associated with reviewing, amending, and resubmitting tax returns.
Coverage for interest charges and penalties imposed by the ATO if discrepancies are found during the audit.
Some policies also offer coverage for audits of prior years' tax returns.
Access to tax professionals who can provide guidance and support throughout the audit.
It's important to note that the extent of coverage and the specific terms and conditions can vary between insurance providers and policies. Therefore, individuals and businesses should carefully review the details of the policy to understand what is and isn't covered. Additionally, tax audit insurance typically does not cover deliberate tax evasion or fraud. If the audit reveals intentional misconduct, the policy may not provide coverage, and legal consequences may apply.
Before purchasing tax audit insurance, it's advisable to consult with an insurance broker to discuss your specific needs and find a policy that suits your situation best.
Tax Audit Insurance in Australia is a vital tool for individuals and businesses to ensure they are well-prepared for the unexpected challenges of a tax audit. By providing financial security, access to professional guidance, and protection against legal costs, this coverage offers peace of mind in an increasingly complex tax environment.
Don't wait until an audit is knocking on your door - be proactive and secure your financial future. Contact us today to explore your options and get the protection you deserve.
Either fill out the 'Request A Quote' form on this page and one of our brokers will be in touch, or give us a call on 1300 306 571.
Senior Insurance Broker
With 35 years’ experience in the insurance industry, Gary is a Senior Insurance Broker at Midland with extensive knowledge across a wide range of business sectors. He specialises in insurance for breweries, distilleries, cafés, restaurants, and manufacturing businesses, bringing a depth of practical insight to every client engagement.
Known for his thorough and considered approach, Gary takes the time to understand how each business operates before delivering clear, tailored insurance solutions. A committed professional, he has completed numerous industry qualifications and is a proud member of ANZIIF, maintaining his expertise through ongoing education and regular engagement with industry developments.
Outside of work, Gary is an avid sports enthusiast who enjoys running, football, and cricket. He remains driven by a simple principle: continuous improvement and delivering the highest standard of advice to his clients.
Senior Insurance Broker
With more than 21 years’ experience in the insurance industry, Angus is a Senior Insurance Broker specialising in Road Freight Transport insurance. He is recognised for his deep understanding of the transport sector and his ability to deliver tailored risk solutions that address the operational and commercial challenges faced by transport businesses.
Angus takes an empathetic, client-first approach, investing the time to understand each business, its priorities, and its risk profile before providing advice. A committed professional, he holds accreditations with NIBA, ANZIIF, CIP, and QPIB, and remains actively engaged with industry developments through ongoing education and professional involvement. His focus is on delivering reliable protection that supports business continuity and long-term confidence.
Senior Insurance Broker
With more than 17 years’ experience in the insurance industry -including 16 years with Midland - Sarah brings deep expertise and a genuine commitment to helping clients protect what matters most. Having held a range of roles across the business, including management positions, she has a well-rounded understanding of both client needs and the broader insurance landscape.
Sarah specialises in small to medium-sized business insurance, with particular expertise in the film and television sector, self-storage, and, more recently, breweries and distilleries. Her approach is focused on making insurance clear, practical, and tailored to each client’s circumstances. Known for her approachable and solution-focused style, Sarah builds long-term relationships grounded in trust, reliability, and understanding.
She holds a Diploma of Insurance Broking and remains actively engaged in ongoing professional development to ensure her advice stays current and relevant.
Senior Insurance Broker
With close to 20 years’ experience in the insurance industry, Andrew is a Senior Insurance Broker at Midland specialising in heavy vehicle and equipment insurance, as well as cover for breweries and distilleries. He is particularly well regarded for his ability to secure tailored, cost-effective solutions for assets involving motors, wheels, or tracks, alongside his strong understanding of the risks unique to alcohol production businesses.
Andrew works with a wide range of clients, from sole traders through to large-scale operations, and is known for his clear communication, flexible approach, and commitment to personalised service. A QPIB-accredited broker and member of NIBA, he maintains high professional standards and remains focused on delivering practical, well-considered advice.
Outside the office, Andrew is a proud father of three and an active community volunteer. His interests in music, electronics, mechanics, and brewing reflect the same curiosity and hands-on mindset he brings to his professional work.
Senior Insurance Broker
Scott is a Senior Insurance Broker with over 12 years’ experience supporting Australian small and medium-sized businesses. He specialises in tailored insurance solutions across the Film & Entertainment, Transport, and Manufacturing sectors, delivering advice that reflects each client’s specific risks and operations.
With a strong focus on understanding how businesses work in practice, Scott provides clear, relevant cover recommendations backed by ongoing professional development and industry engagement.
Outside the office, he enjoys AFL, soccer, and music, and values building long-term client relationships founded on trust and reliability.
Senior Insurance Broker
Beau is a senior insurance broker at Midland with seven years of industry experience supporting businesses across Australia. He works across a broad range of sectors, with particular expertise in earthmoving, heavy equipment, trades, and the winery industry.
Known for his attention to detail and measured approach, Beau focuses on delivering insurance solutions that are clear, practical, and free from unnecessary complexity. He remains actively engaged in professional development, ensuring his advice reflects current industry standards and best practice.
Beau places strong value on collaboration and long-term client relationships. Outside of work, he enjoys golf and football, reflecting his team-oriented mindset and active approach both professionally and personally.
Senior Insurance Broker | Development & Service
With 27 years of experience in the insurance industry, Alex is a senior broker at Midland, recognised for his depth of knowledge, attention to detail, and straightforward approach. While he works across a broad range of businesses, he has a particular focus on clients in the construction and building sectors.
Committed to keeping insurance clear and practical, Alex places a strong emphasis on honesty and client-first advice. He remains actively engaged with industry developments through ongoing professional development and research, and is also a natural mentor, regularly supporting and guiding emerging brokers within the team.
National Sales Manager
Joshua is Midland’s National Sales Manager, with more than two decades of experience in the insurance industry. His expertise spans a wide range of insurance solutions, with particular depth in the winery and brewery sectors.
Taking a considered, people-focused approach, Joshua works closely with clients to understand how their businesses operate and the risks they face, allowing him to deliver insurance solutions that are both practical and relevant. He is known for his ability to make complex insurance concepts clear and approachable.
Outside of work, Joshua has a strong connection to community, having spent several years coaching junior basketball and serving as Vice President of a children’s basketball club. Staying closely attuned to industry developments, he is committed to helping clients make informed insurance decisions that support their long-term success.
Director
Justin is a Director at Midland and has been part of the business since 2003. With more than two decades of experience, he works closely with small businesses across Australia, helping them secure insurance solutions that genuinely reflect the way they operate.
Known for his practical, solution-focused approach, Justin places strong emphasis on clarity, reliability, and long-term client relationships. His depth of industry knowledge and consistent, hands-on service have seen him become a trusted adviser to many business owners over time.
Director
Since 2001, Damien has been central to Midland’s evolution, bringing more than two decades of industry experience and a strong commitment to client-focused service. His expertise spans a wide range of sectors, with recognised depth in the brewery and distillery space.
Working with independent brewers across Australia, Damien helps clients navigate complex operational risks with practical, grounded advice. He is known for his industry knowledge, clear communication, and ability to build enduring client relationships.

