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ARTICLE · 17 FEBRUARY 2013

Penalty Unit Hike: Cost of Offending Soars

Holding Redlich
Holding Redlich
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Holding Redlich

Holding Redlich

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This increase has financial implications for companies and individuals found guilty under a wide range of Federal laws.

AustraliaCriminal Law

New legislation with the purpose of improving Commonwealth criminal justice arrangements (ie, drug and identity crime offences) has significantly affected the size of potential fines applicable for offences committed under federal corporate, information technology and employment laws (among others).

Numerous pecuniary penalties under legislation administered by federal Government agencies are calculated using 'penalty units' as opposed to dollar amounts. The amount of a penalty unit is regulated by section 4AA(1) of the Crimes Act 1914 (Cth).

On 28 December 2012, the Crimes Legislation Amendment (Serious Drugs, Identity Crime and Other Measures) Act 2012 (Cth) (Act) came into effect. This Act amended the Crimes Act 1914 (Cth) such that one penalty unit has increased from $110 to $170. The rationale for the 'adjustment' is to accommodate increases in the Consumer Price Index.

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