The Tax Practitioners Board has defined which tax and business activity statement (BAS) agents will be required to have professional indemnity (PI) cover from July this year.

It has said an agent working for a separate entity will not be required to have cover, as they will already be covered under by their client’s policy.

Agents that also provide tax or BAS services to their employer are also exempt, as well as registered agents who provide their services for free to organisations.

Tax Practitioners Board Chairman Dale Boucher says about 70% of agents did not have cover when they first registered with the board last year.

“By introducing PI insurance as part of our regulatory requirements, we are working to ensure that tax agent and BAS services are provided to the Australian public in accordance with appropriate professional standards,” he said.

The Institute of Certified Bookkeepers (ICB) has welcomed the new insurance requirements, with director John Birse telling insuranceNEWS.com.au the push for PI cover will be “excellent for the bookkeeping industry”.

“The board has required members have PI cover as it makes their business look professional,” he said.

“We are telling people, don’t scrimp on insurance – if you want to be seen to be professional, you need to be insured.”