Bookkeepers who register as BAS Agents under the new Tax Agents Services Act 2009 must have P.I. insurance pursuant to the Code Of Professional Conduct contained within section 30-10 (13) of that Act.  Please note that PI Insurance is compulsory from 1 July 2011, as per the media release from the Tax Practitioners Board on 25 Feb 2010.

Bookkeepers transitioning into the new legislation (those that do not yet have their academic qualifications), are also subject to the Code of Professional Conduct (and thereby the PI Insurance requirement) despite the fact that they may not yet have sought formal registration as a BAS Agent through the Tax Practitioners Board. If you are puzzled please read the Fact Sheet from the Tax Practitioners Board which explains the requirement.

Bookeepers, even if  you plan on being a BAS Agent, to safeguard your personal assets it is a process now of getting your PI Insurance so that if in the event of a client taking legal action you are covered. Even if you are in the right you can incur great costs and countless hours defending yourself. If in the unfortunate situation that your oversight has caused someone loss, the P.I. insurer steps in and defends the claim on your behalf. The P.I. insurer will meet the cost of loss suffered by the claimant and the legal costs incurred in the claim, subject to the terms and conditions of the policy.