Professional standards legislation and schemes are designed to improve professional standards and enhance consumer protection across accounting and other professions. The CA ANZ scheme, which applies to members in public practice in Australia, caps liability to an amount that reflects engagement fees. 

For example, if you’re a member in practice and have a client who paid A$5000 for tax advice and who is successful in a claim against you, your loss will be capped at A$2 million. If the client paid A$120,000 in fees, the cap would be A$5 million. The highest cap of A$75 million applies where fees for an engagement are A$2.5 million or more. 

Under the scheme, caps vary according to engagement types. Mandatory minimum professional indemnity insurance is required to cover this level of liability.

The professional standards legislation is administered by the Professional Standards Councils (PSC) in Australia – and approval of a scheme is by no means a foregone conclusion. 

“The year-long approval process is rigorous,” says Vanessa Chapman, CA ANZ general counsel and group executive, corporate assurance. “The councils must be satisfied that we have activities and mechanisms to maintain and improve professional standards. CA ANZ has had a scheme approved continuously since 1997, which is a good indicator of our performance and effectiveness as an occupational association, as well as a benefit to members in practice.”

The 2025–2030 application has been approved and takes effect on 13 July 2025. The terms remain the same and the scheme continues to apply in all Australian states and territories. 

CPP + PI + disclosure = participation

All CA ANZ members with an Australian Certificate of Public Practice, affiliate members and Australian incorporated practice entity members who fulfil certain obligations are automatically covered by the scheme.

“You must have professional indemnity insurance to the amount of the cap,” says Kristen Wydell, CA ANZ general manager of professional standards. “You must also inform your clients that you participate in the scheme by including the disclosure statement on business stationery including faxes, if you still use them, emails and webpages. 

“It’s vital they understand that any compensation or damages they might receive in the future will be capped. While it’s ultimately a matter for a court to decide if the scheme operates to cap liability fundamentally, if you have a Certificate of Public Practice disclosure plus adequate PI [professional indemnity] insurance, you have scheme coverage and the scheme may be pleaded in a defence.”

Benefits for practitioners, clients and insurers

A report released by the PSC in 2022 shows that professional standards schemes help improve risk management. This benefits Australian consumers, scheme participants and insurers.

“The CA ANZ scheme and mandatory professional indemnity insurance reassures your clients that, should they have a genuine claim, funds are available to compensate them for loss up to the capped amount,” says Chapman. 

Clients can also trust that you’re being held to the highest standards across regulation, education and ethics. 

“In order to be approved for the scheme, occupational associations have to satisfy the councils that we’re continuously improving professional standards of members and have an effective complaints process,” says Chapman. “We take our role as an educator and upholder of professional standards and ethics incredibly seriously.” 

As a practitioner, you’re better placed to calculate risk and then price your services accordingly. You also have more certainty around what your contingent liabilities might be. 

“The scheme also benefits the insurance market, because insurers can price policies knowing that liability is subject to statutory caps,” says Chapman. “As a result, members can often benefit from more favourable professional indemnity insurance terms.”