Limitation of Liability Scheme
As members of the Institute of Chartered Accountants in Australia (“Institute”), the partners of this firm are participants in a scheme which limits the liability of its members in accordance with the Professional Standards Act (Vic) 2003. The scheme limits liability in relation to any claim under the Trade Practices Act.
Under the scheme, any liability for damages arising out of a cause of action for occupational liability which may be awarded against a person to whom the scheme applies is limited to the maximum of:
(a) Where the fee payable for the service to which the cause of action relates, being a reasonable charge for the service provided or which was failed to be provided, is less than or equal to the minimum fee cap below, the liability cap is shown below:
Period Minimum Fee Cap Liability Cap
To 30 June 2008 – $50,000 – $500,000
1 July 2008 to 30 June 2009 – $75,000 – $750,000
From 1 July 2009 – $100,000 – $1,000,000
(b) Where the fee exceeds the relevant minimum fee cap above, the liability cap shall be a multiple of ten times the fee, but must not exceed a monetary ceiling of $75 million in relation to audit and related services and $20 million in relation to non-audit or insolvency services.