Not so ‘Happy New Year’ – Tax Office fines increase from 28 December 2012

The Tax Office imposes fines for late lodgement of various tax returns and other documents that they ask you to lodge.  The fine is on the basis of 1 ‘Penalty Unit’ for each 28 days that a return is late, up to a maximum of 5 Penalty Units.

On 28 November 2012 legislation passed which increased the value of a Penalty Unit from $110 to $170 and requires the value of a Penalty Unit to be reviewed every three years.  The value of a Penalty Unit has not increased since 1997.

So what used to be a $550 fine, now becomes $850.

The new fines will apply prospectively, that is, where the matter giving rise to the penalty occurs on or after 28 December 2012.

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