Important information for members in Public Practice

27 June

The current CPA Australia PSC scheme which operates across mainland Australia expires on 7 October 2017. There is currently no scheme in Tasmania.

CPA Australia lodged an application for a new Professional Standards Scheme in January 2017 which has been assessed by the Professional Standards Council (PSC) of New South Wales.

Limited Liability Scheme Guidance Note (PDF)

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Professional Standards Council

The Professional Standards Council approved a new Professional Standards Scheme for members with a CPA Australia Public Practice Certificate (PPC) in Australia, with the exception of Tasmania, in 2013.

The schemes provide continuation of limited liability cover for members.

Current Professional Standards Scheme period

  • New South Wales – 8 October 2013 to 7 October 2017
  • Australian Capital Territory - 1 February 2014 to 7 October 2017
  • Queensland - 1 February 2014 to 7 October 2017
  • Northern Territory - 1 February 2014 to 7 October 2017
  • Western Australia - 1 February 2014 to 7 October 2017
  • South Australia – 13 February 2014 to 7 October 2017
  • Victoria – 21 April 2014 to 7 October 2017

Your obligations

It is compulsory for CPA Australia Public Practice Certificate holders in mainland Australia to become members of CPA Australia's Limited Liability Scheme (LLS).

  • You pay $55 (including GST) to be a member of a CPA Australia LLS scheme. The fee is included on your yearly subscription renewal notice.
  • You must notify clients, and potential clients, of your limited liability on your business stationery and website. This notification is in the form of a disclosure statement: Liability limited by a scheme approved under Professional Standards Legislation.
  • You must hold a minimum $2 million in professional indemnity (PI) insurance.

Find out more

The benefit of limited liability

Since the inception of CPA Australia’s Professional Standards Scheme (which has the ability to limit your liability, currently set to $2,000,000) there have been a number of matters where it has assisted in not only limiting the quantum claimed but also the time involved in settlement.

For example:

A two-partner firm which undertakes a normal spread of accounting activities lodges a claim on a Capital Gains Tax (CGT) matter. The demand made by the Plaintiff is for compensation of $3,400,000.

CGT matters are very complex and the statement of claim includes such things as opportunity cost lost, interest consideration and accounting investigation costs.

As a result of the accountant being a member of the CPA Australia Professional Standards Limited Liability Scheme, the matter may be mediated to the $2,000,000 cap quickly and with limited disruption to the practice, saving the practitioner time and limiting the loss of revenue.

There have been a number of examples in law where limited liability has come into play to the benefit of the member of a limitation of liability scheme. The above is just one example.