What is R&D Tax Incentive Audit Insurance?
It’s a policy that covers the cost of defending your R&D Tax Incentive claim if the ATO or DISR decides to audit you. Simple as that.
Why You Should Care
Because audits are a pain — and they’re expensive.
Even if your claim is squeaky clean, defending it properly takes time, expertise and usually a decent invoice from your accountant, lawyer or R&D consultant. We’ve seen reviews cost $10K, $20K… even more. Audit insurance is there to take the sting out of that.
“A good claim gets you the money. A strong defence helps you keep it.”
What’s Actually Covered?
Most R&D audit insurance policies cover things like:
- ATO and DISR reviews – Full audits, risk reviews, requests for information — all covered
- Professional fees – Accountants, consultants, legal advice, technical reports
- Cross-agency audits – When the ATO and DISR team up (it happens more than you’d think)
- Coverage up to $250,000 – Depending on the size of your claim and policy
- Retrospective claims – In some cases, even if the claim is from a previous year
One of the few providers offering proper R&D audit cover is AB Phillips. They’ve built a product that’s specifically designed for the R&D Tax Incentive, not just generic tax audit insurance with a new label slapped on it.
How Much Does It Cost?
It starts from around $5,000 a year, and goes up depending on your revenue and how much you’re claiming back.
Is it cheap? No. But if your refund is six figures, or your records are a bit light-on — it’s good peace of mind.
When Are You Most at Risk?
Here’s what gets companies in hot water:
- High R&D claim vs low revenue – Big red flag
- Software projects – Harder to prove, easier to deny
See how we explain this - Overseas contractors – Need to be pre-approved
More here on Advance Findings - No timesheets or records – ATO will knock you back fast
Here’s what triggers reviews - Constructive payments not documented – Associate costs with no actual payment trail
Fix that here - Claiming grey areas – Trial and error, tweaking existing tools, bug fixing
Common Pitfalls list
And if you’ve had a review before? You’re more likely to be looked at again.
Who Actually Needs Audit Insurance?
Not everyone. But it’s a smart move if:
- Your refund is over $100K
- You’ve got contractors overseas
- Your records are a bit scrappy
- You’re in software or tricky technical areas
- You’re using a new consultant
- You’re doing your own claim and not 100% sure what you’re doing
This might help → DIY Claims Guide
If any of that sounds familiar — check out AB Phillips. They can talk you through what it covers and whether it’s worth it for you.
“The ATO and DISR are doing more joint audits. If your records are weak or payments don’t line up, it’s not a discussion — it’s a denial.”
Want to Avoid the Audit Altogether?
We can’t stop the ATO from choosing your file — but we can make sure that if they do, your claim doesn’t fall over.
At Bulletpoint, we write claims that are tight, compliant, and defensible. Not just “tick-the-box” claims. Real R&D, explained properly, backed by records, and structured to pass a review.
- 10+ years in the game
- 500+ successful claims
- 280+ five-star reviews
- Been through dozens of audits — and passed
- No fluff. Just strong claims, done right
Want a Second Opinion?
- Call Bulletpoint on 1300 658 508
- Message us to see if your claim is audit-proof
- Call Bulletpoint now to get a review before you lodge
- Chat with us about whether audit insurance makes sense for your business
- Call 1300 658 508 and talk to someone who actually knows the R&D Tax rules
