Penalty units

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

On this page

• Why we impose penalties
• How we notify you
• How we calculate the penalty

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.

We also have certain rules for:

• missed and late super guarantee payments
• penalties for individual and corporate trustees
• compliance and penalties.