Part 1: Revenue Measures (continued)
Commonwealth penalty units — increase in value to reflect inflation
The Government will increase the value of all Commonwealth penalty units from $170 to $180, with effect from 31 July 2015. This increase is broadly consistent with inflation since the value was last adjusted in December 2012. The Government will also introduce ongoing indexation of penalty units based on the Consumer Price Index. Indexation will occur on 1 July every three years, with the first indexation occurring on 1 July 2018. This measure is estimated to have a gain to revenue of $45.0 million over the forward estimates period.
Penalty units are used to describe the amount payable for fines under Commonwealth laws. Commonwealth penalties are generally expressed in terms of penalty units (rather than specific values) to assist in the consistent adjustment of penalties across the Commonwealth statute book. This measure will ensure that financial penalties for Commonwealth offences keep pace with inflation and continue to remain effective in deterring unlawful behaviour.