Higher financial penalties will soon be in place for breaches of most Australian Government laws. Several of the penalties administered by the ATO are calculated using penalty units rather than dollar figures or percentages of shortfall amounts. On 28 December 2012 the value of a penalty unit will increase from $110 to $170.
For taxpayers, the implications of this legislative change are:
The new penalty unit value will only apply to breaches that occur on or after 28 December 2012. This means that the changes will not impact on breaches that occur before 28 December 2012 or current proceedings for offences that were committed before this date.
The penalty unit value has not been adjusted since 1997. Under the new legislation, the value of the penalty unit will be reviewed every three years.