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  • Penalty units

    How we calculate penalties, and the penalty unit amounts for the period the infringement occurred.

    On this page

    Why we impose penalties

    Tax laws authorise us to impose administrative penalties when you fail to meet your tax obligations.

    Penalty provisions are there to encourage all taxpayers to take reasonable care in complying with their tax obligations.

    We consider your circumstances when deciding what action to take.

    How we notify you

    If you're liable for a penalty, we'll notify you in writing and include:

    • the reason for the penalty
    • the amount of the penalty
    • the due date for payment (at least 14 days after we give notice).

    You can't claim a deduction for penalties we impose.

    How we calculate the penalty

    We calculate the penalty amount using either:

    • a statutory formula, based on your behaviour and the amount of tax avoided
    • multiples of a penalty unit.
    Table: Penalty unit

    When infringement occurred

    Penalty unit amount

    On or after 1 January 2023


    1 July 2020 to 31 December 2022


    1 July 2017 to 30 June 2020


    31 July 2015 to 30 June 2017


    28 December 2012 to 30 July 2015


    Up to 27 December 2012


    We also have certain rules for:

    Last modified: 04 Jan 2023QC 71196