Professional indemnity insurance for Dentists

Clarke McEwan Accountants

Today's dentists operate in a far more litigious environment than they did in past decades. So it's crucial that your professional indemnity insurance affords you adequate and appropriate cover for your full scope of practice, say experts.

Like all health professionals, dentists now operate in an increasingly litigious environment. Nearly one in 10 dental practitioners will face a lawsuit in their professional lifetime, and one in 20 will be slugged with a regulatory complaint or matter in any given year. So it's crucial that dentists' professional indemnity insurance (PII) covers them for the full scope of their practice and that its limits enable them to mount a proper defense, should they wind up in court or face regulatory action.

Why dentists need PII

According to the Dental Board of Australia, PII refers to a policy or arrangements "that secure for the practitioner's professional practice insurance against civil liability incurred by, or loss arising from, a claim … made as a result of a negligent act, error or omission in the conduct of the practitioner".

"Having PII is a legal requirement, part of your registration," explains Dr Hugo Sachs, Australian Dental Association federal president. "It covers you for the actual procedural events that occur in a dental surgery, so anything from restorative work to tooth removals.

"PII also ensures members of the community that if something untoward occurs in their [dental] treatment, the provider of that service is indemnified, and therefore they will be recompensed."

Craig Hockley, head of marketing at Guild Insurance-the ADA's preferred insurer in NSW, Victoria, Tasmania and SA-says having comprehensive PII cover isn't just mandatory; it's a necessity.

"Twelve years ago, around one in 30 dentists experienced the stress of a professional indemnity claim; today, it's closer to one in 10," Hockley says. "Not only has the incidence of claims increased, so has the cost. Without professional indemnity insurance, dentists risk losing their business and personal assets."

Clive Levinthal, CEO of Experien Insurance Services, agent for Australia's largest indemnity insurer, Vero, notes that dentists' need for PII cover has increased with changes in the regulatory environment. "Historically, the main concern for dentists was civil claims, and that's still a high risk. But [as] regulatory bodies have become … easier for consumers to access, regulatory cases have spiked: in 2016-17, these increased by around 30 per cent year on year."

Regulatory cases run the gamut, Levinthal says, from complaints about quality of work done, "say, in putting on veneers, to failing to exercise 'reasonable care and judgement' during a filling or extraction that failed, or the dentist having inadequate skills to do work such as implants or orthodontics" to allegations of poor infection-control measures, inappropriate behaviour and threats to patient safety.

"It could come from anyone-a patient, current or former staff member or the regulators themselves, following an audit of compliance practices or allegations made by a third party," he says.

And even competent, careful dentists can be at risk, cautions Dr Sachs. "No-one's immune-there are some scurrilous claims," he says. "And in general, the more complicated the treatment, the higher the risk. Which is why you have professional indemnity insurance: it's there to help both patient and practitioner."

Registration standard

Under Section 129 of the Health Practitioner Regulation National Law, a registered health practitioner can engage in his or her profession only if "adequate and appropriate" PII arrangements are in force.

"No-one's immune-there are some scurrilous claims. And in general, the more complicated the treatment, the higher the risk. Which is why you have professional indemnity insurance: it's there to help both patient and practitioner."-Dr Hugo Sachs, president, Australian Dental Association

All dental practitioners except those with student or non-practising registration must be covered by PII that meets the minimum terms and conditions outlined in the DBA's Indemnity Insurance Registration Standard.

Whether direct or third-party, your PII cover must include civil liability cover, appropriate retroactive cover; and automatic reinstatement, dictates the DBA.

Civil liability cover pays for any legal expenses you incur defending or settling a civil claim, plus any damages. Retroactive cover means PII arrangements covering you against claims arising from procedures undertaken prior to the start of the policy, while automatic reinstatement means the limit of indemnity (amount insured) is reinstated for new, unrelated claims even after claims have been paid to the indemnity's limit.

If you work under third-party PII that doesn't meet this standard, you'll need to take out additional cover. Ditto if you intend to practise outside the scope of your employer's PII-say, through additional study or volunteer work

Moreover, under the DBA's registration standard, 'practice' isn't restricted to direct clinical care; it includes "using professional knowledge in a direct non-clinical relationship with clients… and [in any roles] that impact on safe, effective delivery of services in the profession".

Practice owners should take out practice entity cover in addition to their individual PII, advises Levinthal. "Though it's not mandatory, it's recommended, especially if they employ other dentists. Because if one of those associate dentists makes a mistake, litigation … can be brought on both the individual treating dentist and the practice that employed that dentist."

The same could apply to an assistant's error, he notes. "So if you're the owner and employ staff, ensure you're covered for mistakes they may make."

Full scope of practice

In line with the National Law, the DBA sets out "broad scope-of-practice requirements for the different types of dental practitioners, rather than specific activities", explains the Board spokesperson. "Practitioners are expected to practise safely and within the limits of their competency, training and expertise.

"In all cases, dental practitioners need to assess whether their PII is adequate, given the area/s of practice they work in, their professional experience, the risks involved in their practice and any previous insurance claims made against them," says the spokesperson.

"All dental practitioners must declare if they meet the Board's standard on PII when they apply to renew their registration. The Australian Health Practitioner Regulation Agency audits practitioners at random to ensure they meet … registration standards. Any practitioner who cannot produce evidence demonstrating that they're covered by appropriate PII may have action taken against them."

While most APRA-approved insurers take a 'full scope of practice' approach to PII for dental practitioners, not all policies are equal, asserts Levinthal.

"It's important a practitioner pays close attention to these details as well as any limits of cover the policy may extend."-Craig Hockley, head of marketing,

Guild Insurance

"We don't nitpick and charge additional premiums for general dentists who, say, do implants or orthodontics-our policy covers for everything they're registered to practise," he explains. "There are different premium bands, however. So a part-time dentist can opt to pay less. And while there's no discount for not practising particular treatments, choosing certain excesses lowers your premium."

Hockley notes that while some insurers "dictate the number of hours a week a practitioner can work or limit the number of hours they can spend on specific treatments, Guild's dental PII policy's written in such a way that if the DBA says you're able to do it, you're covered".

That said, loadings are applied to general dentists intending to undertake implants and/or orthodontics, Hockley says, because audits show "there's a greater risk to those two procedures".

For general dentists, taking out a full-scope-of-practice PII policy is a simple way to ensure you're covered in any eventuality, says Dr Sachs. "If you don't, and you're not paying the add-ons-which, for orthodontics and implants, [can] attract a significant loading-you can't legally practise these procedures. And without 'full scope of practice' cover, dentists who've had repetitive misadventures can find their insurer says, 'We'll no longer insure you for that'."

Read the fine print

When weighing up various PII options-and before you sign-read the fine print, experts caution. "It's important a practitioner pays close attention to these details, as well as any limits of cover the policy may extend," says Hockley.

PII providers offer anything from $100,000 to $500,000 for defending regulatory matters, and typically between $10 million and $20 million for civil claims. "It's certainly worth shopping around," Levinthal stresses.

Hockley, however, contends that with PII, price correlates directly with the service you receive. "Just because another insurer's premiums are cheaper doesn't mean it's like for like," he says.

"Nine out of 10 of our customers who've made a claim go on to recommend us to a colleague. While we're close to it, we don't pretend to be the cheapest: we aim to be the best, and to be there when you need us. Dentists pay, on average, $2500 a year-claims can be millions. There's a distinct possibility that if you're not properly covered, you can lose your livelihood."

Failing to note changes to the fine print could also prove costly.

For example, the 2012 amendment applied to many Australian health practitioners' PII policies, excluding from coverage anyone using 'therapeutic goods' not registered under our TGA-designed to discourage dentists from using cheap unregistered imports that could be harmful to patients-entailed an apparently 'minor' alteration to the fine print. Ignoring this crucial amendment could, potentially, have cost a practice or practitioner millions-enough to render them bankrupt, with their professional reputations damaged irreparably.

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Cash is Making a Comeback – Is Your Business Ready to Take It?

By Clarke McEwan • December 3, 2025

The Government has released draft regulations that would require certain retailers to accept cash payments, ensuring Australians can still buy essential goods like groceries and fuel – even when technology fails. The change aims to stop people from being excluded when power, internet, or card systems go down, or when they simply prefer to pay in cash. Who Will Need to Accept Cash – and Who Won’t The new rules are targeted and, importantly, practical. They’ll apply to fuel stations and grocery retailers, including both major supermarket chains and independent operators, but only for in-person transactions under $500. That means you won’t have to accept someone paying for a $700 tyre replacement or bulk farm supplies in cash – it’s about the everyday essentials. If your business (or franchise group) has an annual turnover of less than $10 million, you’ll be exempt. That’s good news for most small businesses such as family-run grocers, local cafés, and corner stores already managing tight margins and staffing challenges. The regulations are expected to take effect from 1 January 2026, with a review after three years to see how the system is working in practice. Why It’s Happening The move comes as part of a broader push to maintain access and fairness in Australia’s payment system. The Government and industry groups have recognised that while most Australians are happy to tap their card or phone, around 10–15% still prefer to use cash – particularly older Australians and those in regional or remote areas. There’s also a resilience angle: during bushfires, floods, or power outages, card networks can go offline. In those moments, cash becomes essential. What This Means for Your Business For larger retailers, this change will mean dusting off cash-handling policies and reintroducing processes that many have phased out. That may include: Re-establishing cash floats and tills Staff training to handle and verify cash More frequent bank deposits and reconciliation procedures For small businesses that fall under the $10 million exemption, the key step will be to document your turnover clearly so you can demonstrate that the exemption applies. We can help ensure your records and structures support that. There may also be commercial upside. Accepting cash could attract a segment of customers who’ve drifted away as stores went digital – especially in regional areas where cash use remains strong. A small business that promotes “cash welcome” could even gain new loyal customers who value convenience and personal service. Preparing for the Change With final regulations expected soon, it’s worth starting to plan now. Review your payment policies, assess whether you’re likely to be caught by the new rules, and budget for any setup or compliance costs. If you’re exempt, ensure your records are watertight. If not, look for ways to streamline cash handling – for example, by using digital cash counters or smart safes to reduce errors and time spent on reconciliations. Looking Ahead Cash isn’t going away just yet. This reform is about maintaining choice, resilience, and fairness in how Australians pay – and ensuring businesses are ready when customers want to use it. If you’d like help assessing how these rules could affect your operations or what the exemption means for your business, get in touch with our team.

Know the Rules Before You Break Them: Why SMSF Education Matters More Than Ever

By Clarke McEwan • December 3, 2025

Why understanding SISA matters You can’t comply with what you don’t know: Many common breaches arise from misunderstanding basic SISA duties (for example, sole purpose, arm’s length dealings, or in-house asset limits). Awareness of the rules is the first step to spotting a problem early. Early identification reduces harm: Knowing what to look for, incorrect benefit payments, related party transactions that aren’t on commercial terms, or records that are incomplete, lets you seek advice before small errors become reportable contraventions. Education protects members: The consequences of a breach can include loss of tax concessions, penalties and remediation costs that reduce retirement savings for members. The ATO’s Focus on Education — What Trustees Need to Know The ATO has recently published a draft Practice Statement (PS LA 2025/D2) explaining when it might issue an education direction under section 160 of SISA. These directions give the ATO power to require trustees (or directors of corporate trustees) to complete specified education, where trustees’ knowledge or behaviour poses a risk to compliance. The draft statement sets out the ATO’s approach and the kinds of circumstances that may lead to an education direction. However, trustees should not wait for an ATO directive before getting educated – such a directive means the trustees have already breached the rules. The draft Practice Statement is intended to support compliance and public confidence, but it is not a substitute for proactive trustee learning. Acting early and voluntarily is both safer for trustees and viewed more favourably by regulators. Practical Steps Trustees Can Consider Use ATO’s official SMSF guidance Start with the ATO’s SMSF courses on the lifecycle of an SMSF, setting up, running and winding up. These courses are written for trustees and prospective trustees: Setting up an SMSF: https://smallbusiness.taxsuperandyou.gov.au/setting-up-a-self-managed-super-fund-smsf Running an SMSF: https://smallbusiness.taxsuperandyou.gov.au/running-a-self-managed-super-fund-smsf Winding up an SMSF: https://smallbusiness.taxsuperandyou.gov.au/winding-self-managed-super-fund-smsf Complete the ATO’s ‘knowledge check’ The ATO provides an online “knowledge check” for each course designed to test trustee understanding. It’s a useful starting point, but note a pass mark of 50% should not be taken as a guarantee of safety. Trustees should consider whether aiming for a much higher standard, even 100% comprehension of core duties, is a more appropriate target to reduce risk. Seek timely professional advice If a knowledge check or your reading flags uncertainty, contact us early to discuss your concerns. Timely, qualified advice often transforms a potential contravention into a routine fix and may mitigate potential penalties or ATO enforcement action. Document your learning and decisions Keep records of training completed, who provided advice, and why investment or payment decisions were made. Good records are persuasive evidence of a trustee’s intent to comply. Final Word SMSF trustees hold both opportunity and responsibility. Learning the SISA rules and the ATO’s expectations is the most practical way to prevent costly mistakes. The ATO’s draft Practice Statement shows the regulator is prepared to use education directions where trustees’ knowledge gaps pose risks, but you shouldn’t wait to be told. Build your knowledge, use the ATO’s resources, complete the knowledge check, document what you learn, and seek professional help confidently and early. That approach better protects your fund and retirement outcomes.

Unlocking Tax Savings: Can Your MBA (or Other Studies) Pay Off at Tax Time?

By Clarke McEwan • December 3, 2025

The ATO’s rules on self-education expenses are strict, and the line between “deductible” and “non-deductible” can be thin. Getting it right could mean thousands back in your pocket; getting it wrong could mean an ATO adjustment, plus interest and penalties. Let’s unpack how it works with a real-world example and some practical takeaways. The Scenario: Sarah’s MBA Sarah works in the Department of Defence and recently completed an MBA through a private provider. Her employer supported her studies with a $40,000 study allowance, and the course fees totalled $18,000. She deferred payment using the FEE-HELP loan system and declared the allowance as taxable income in her return. Now she’s asking: Can I claim a deduction for my MBA fees? Does it matter that I used FEE-HELP? Does the employer allowance change things? The Type of Loan Matters First, not all funding for education courses is treated equally. HECS-HELP - no deduction: If your course is a Commonwealth supported place (most undergraduate and some postgraduate university programs), you can’t claim a deduction. There is specific legislation in the tax system which denies deductions for fees covered by HECS-HELP — even if you pay them upfront and even if the course is closely related to your work. FEE-HELP - potential deduction: If you’re in a full-fee course, your tuition fees might be deductible if the study directly relates to your current employment or business activities. The ATO doesn’t allow a deduction for loan repayments later on — just the course fees themselves. Practical tip: Check your course statement or loan confirmation to see if you’re under HECS-HELP or FEE-HELP. Only FEE-HELP (or private payment) gives you potential deductibility. The “Nexus” Test — Linking Study to Your Current Work Even if the funding passes the first test, the purpose of the study is key. The ATO will only allow deductions if the course maintains or improves the skills you already use in your job, or is likely to increase your income in that same role. It won’t apply if you’re studying to move into a new field or start a different career. The ATO issued a detailed ruling on this topic in 2024 which provides some clear examples: Allowed: A store manager doing an MBA to strengthen leadership and business operations skills. Denied: A sales rep doing an MBA to change careers into consulting — the link to the current role was too weak. For Sarah, the deduction depends on whether her MBA subjects (like strategy, policy or management) build directly on her current Defence role. The fact that her employer funded the course helps demonstrate relevance, but it’s not proof on its own. In some cases you might find that specific subjects or modules are sufficiently linked with current income earning activities, while other subjects are too general in nature for the fees to be deductible. Employer Allowances and HELP Repayments The $40,000 allowance Sarah received is assessable income — it’s taxed just like salary. But that doesn’t stop her from claiming eligible self-education deductions for the course fees. HELP loan repayments later on are not deductible — they’re simply a repayment of debt. The timing of the deduction is based on when the course expense was incurred (not when the loan is repaid). Making It Practical If you’re planning further study or reviewing a recent course, here’s how to make sure you get it right: Check your loan type – FEE-HELP or private fees can be deductible; HECS-HELP cannot. Gather evidence – Keep course outlines, job descriptions, and any correspondence showing the study supports your current work. Claim what’s relevant – You can only claim expenses directly connected to your current job (fees, books, and possibly travel). Be ready for review – Large claims often attract ATO attention. A private ruling can provide peace of mind if the amount is significant. Key Takeaways For many professionals, postgraduate studies like an MBA can deliver both career and tax benefits — but only if they relate directly to your current role. Handled correctly, self-education deductions can return thousands in tax savings. For Sarah, that could mean a refund of over $5,000 on an $18,000 course. If you’re considering further study, talk to us before you enrol or claim. A quick chat could ensure your next qualification delivers the best return — professionally and financially.

Super on Payday: Fundamental Changes for Employers

By Clarke McEwan • December 3, 2025

It’s called Payday Super, and it became law on 4 November 2025. The new rules are designed to close Australia’s $6.25 billion unpaid super gap and make sure employees — especially casual and part-time workers — get their retirement savings when they get paid. What’s Changing? From 1 July 2026, you’ll need to pay superannuation guarantee (SG) contributions at the same time as wages, rather than weeks or months later. Employers will have seven business days from payday to ensure contributions hit employees’ super funds. If payments are late, the Superannuation Guarantee Charge (SGC) will apply — that means paying the missed super plus an interest and administration penalty. Once SGC has been assessed, additional interest and penalties may apply if the SGC liability isn’t paid in full. Unlike the existing system, SGC amounts will normally be deductible to employers, although penalties for late payment of SGC won’t be deductible. On top of this, the ATO will retire the Small Business Superannuation Clearing House (SBSCH) platform from 1 July 2026 for all users and alternative options should be sought. The change isn’t just about compliance — it’s about impact. The Government estimates the earlier payments could boost an average worker’s retirement balance by around $7,700. Why It’s Good for Business This reform might sound like extra admin, and it might take a bit of getting used to, but it can actually simplify your payroll process and strengthen your reputation as an employer. Less admin – Paying super when you run payroll means no more quarterly payment crunches. Fewer compliance risks – ATO data-matching will pick up issues faster, helping you avoid penalties before they snowball. Stronger employee trust – Staff can see their super growing in real time, which might help with engagement and retention. Smoother cash flow management – Paying smaller, regular amounts of super is often easier to manage than large quarterly sums. The ATO will take a “risk-based” approach for the first year, focusing on education and helping businesses transition smoothly. If you pay on time, you’ll likely be flagged as low risk, meaning fewer compliance checks. How to Get Ready — Practical Steps to Take Now You’ve got time before the rules kick in, but the smart move is to prepare early. Here’s how: Check your payroll software. Most modern systems (like Xero, MYOB, or QuickBooks) already support payday-aligned super. Confirm your setup and check if any updates or integrations are needed. Map your pay cycles. Note how often you pay staff (weekly, fortnightly, monthly) and calculate the seven-day payment window for each. Brief your team. Make sure whoever manages payroll understands the changes. The ATO has free online resources and webinars to help. Plan your cash flow. Consider shifting from quarterly to more regular payments now to get used to the timing. Smaller, frequent super payments can reduce cash flow shocks. Monitor and review. Set up a monthly check to ensure super contributions have cleared correctly. Keep an eye on ATO updates as final guidance is released. If you outsource payroll, contact your provider soon — many are already updating systems for Payday Super and can help you make a seamless switch. The Bottom Line Payday Super isn’t just a compliance change — it’s an opportunity to make your payroll more efficient, your staff happier, and your business more compliant with less effort. With the laws now passed and just over 6 months to prepare, it’s time to get ahead of the curve. If you’d like help reviewing your payroll setup or planning the transition, get in touch with our team — we can help you make sure your business is ready to go when Payday Super commences.