subscribe to our newsletter
Penalty unit hike passed by both houses

Penalty unit hike passed by both houses

Bill passed
Miranda Brownlee
12 May 2017

A bill passed by both houses of parliament to increase penalty units for Commonwealth penalties from $180 to $210 will see SMSFs pay higher penalties for contraventions.

Yesterday, the government passed Crimes Amendment (penalty unit) Bill 2017 which will increase the Commonwealth penalty unit from $180 to $210, with effect from 1 July 2017.

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 governments efforts to repair the budget and benefit everyday Australians.”

Penalty unit hike passed by both houses
smsfadviser logo
join the discussion

What do you plan to do in response to the new adviser education standards?

SUBSCRIBE TO THE
SMSF ADVISER BULLETIN

Get the latest news and opinions delivered to your inbox each morning

In this month's issue:

  • Time wrap
  • The tech bull run
  • From hobby to passion
  • Golden Years
  • An untimely reminder
  • Why change is so difficult
  • Key Strategies for equalising super