If you believe that the notional monetary value of fines should keep pace with inflation, then you’ll be pleased by recent amendments to the Crimes Act 1914.
The amendments, which take effect from 28 December 2012, will see the monetary value of a penalty unit increased for the first time in 15 years.
Also, the amendments require that in future the value of a penalty unit must be reviewed every three years to ensure that it is “amended to accommodate changes in the Consumer Price Index”.
The monetary value of a penalty unit will increase from $110 to $170. This is the first increase since 1997. On my calculations the $60 increase is the equivalent of a 2.2% increase each year over the past 15 years.
The change affects the value of a penalty unit in most Commonwealth laws, including the Corporations Act 2001. and, therefore, the sections dealing with liquidations and other forms of external administration.
I have written previously about penalties imposed under sections 475 and 530A of the Corporations Act. A section 475 penalty may be imposed if a director fails to submit a Report as to Affairs to the liquidator. A section 530A penalty may be imposed if a director fails to deliver books and records or fails to assist the liquidator. The old and new maximum fines for these summary offences are shown in the chart below.
|
Offence |
Maximum Penalty Units |
Old Maximum Fine to 27/12/2012 |
New Maximum Fine from 28/12/2012 |
| Section 475 |
25 |
$2,750 |
$4,250 |
| Section 530A(6) |
50 |
$5,500 |
$8,500 |
Of course, it remains to be seen whether the increased maximums will result in greater penalties being imposed by the Courts.
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Sources:
Crimes Legislation Amendment (Serious Drugs, Identity Crime and Other Measures) Bill 2012 received royal assent on 28 November 2012. See HERE
Crimes Act 1914, subsection 4AA
Section 1311 of the Corporations Act 2001
Schedule 3 of the Corporations Act 2001