Penalty unit hike passed by both houses

It will also delay the first automatic CPI adjustment of the penalty unit until 1 July 2020, with indexation to occur every three years following that date.

DBA Lawyers director Daniel Butler told SMSF Adviser contraventions of many super provisions usually amount to 60 penalty units, and the penalty for these contraventions will mean an increase from the current $10,800 to $12,600 from 1 July 2017.

“[SMSF trustees] have got to take stock because it again reinforces that if you’ve got a corporate trustee, you only have to pay one level of penalty,” Mr Butler said.

Minister for Justice Michael Keenan also weighed in, saying strong penalties are a “central tenet of an effective justice system”.

“This bill will strengthen courts’ ability to impose appropriate punishments on serious offenders, including those involved in organised crime, white-collar crime, fraud and cybercrime,” Mr Keenan said.

“This measure is estimated to result in increased revenue to the Commonwealth of $80 million over the next four years, which will support the government’s efforts to repair the budget and benefit everyday Australians.”