The Tax Practitioners Board advises that if a tax practitioner is a registered tax or BAS agent, their professional indemnity (PI) insurance policy must include ‘retroactive’ cover from 1 July 2015.
Retroactive cover provides insurance for any claims which may arise prior to the start date of the tax practitioner's current policy.
Specifically, from 1 July 2015, when a tax practitioner takes out, changes or renews their PI insurance, their policy must include retroactive cover to the earlier of:
- the retroactive date specified in the current PI insurance policy being renewed, or
- the start date of the first PI insurance policy if the tax practitioner has had a series of continuous policies.