The price of an Australian Government penalty unit has increased by 10% from 1 July 2026 to $364.
Penalty units are a standardised monetary value used in Australia to determine fines for breaches of laws at both federal and state levels. The value of a penalty unit is prescribed in the Crimes Act 1914.
Instead of specifying exact dollar amounts for each offense, legislation often prescribes penalties in terms of penalty units. This system allows for easier adjustments to fines over time, particularly in response to inflation.
The increase is over 10% from the last price of $330 set in November 2024.
Common penalties we see to encourage taxpayers to lodge tax statements on time are a ‘failure to lodge on time penalty.
Failure to lodge on time – Penalties
| $364 | Initial Penalty Units | $ | Maximum x 5 |
|---|---|---|---|
| Base Penalty Amount | 1 | 364 | 1,820 |
| Medium Withholder | 2 | 728 | 3,640 |
| Large withholder | 5 | 1,820 | 9,100 |
| Significant Global Entity | 500 | 182,000 | 910,000 |
The amount of penalties is significantly increased for Global companies with groups of more than $1 Billion turnover, even if the Australian company is small.
Other tax related penalties can be found on the ATO website: Penalties | Australian Taxation Office
With the ATO in particular being more reluctant to remit any penalties, it is important that any Government compliance obligations are lodged on time.
We recommend you contact your Exant advisor or our tax Partner, Jamie Towers, early in the year to process your financial statements and tax returns, assess any liabilities, budget for any time payments and avoid ATO penalties. Complete the form below or call us on 07 3218 3900.
