Increase in the value of penalty units

Preamble

• The various taxation laws administered by the Office of State Revenue provide for the imposition of penalty units for certain offences.

• The value of the penalty unit is determined by Section 56 of the Interpretation Act 1987.

• Prior to this amendment Section 56 provided that a number of penalty units is equal to the amount obtained by multiplying the number of penalty units by $100. This section has remained unaltered since 1987 although monetary values have been eroded by inflation.

• The Statute Law (Miscellaneous Provisions) Act 1997 which was assented to on 2 July 1997 contains a provision amending section 56 of the Interpretation Act 1987.

Ruling

• The amendment increases the amount represented by each penalty unit from $100 to $110.

• By way of example, upon commencement of the amendment, a reference to a maximum penalty of 5 penalty units will now mean a maximum penalty of $550 instead of $500. The increase will not affect the penalty for any offence committed prior to the amendment coming into force.

• The amendment is proclaimed to commence on 1 September 1997. The higher penalty rate only applies to offences committed on or after that date.