ATO increases penalty rates

For the first time since 1997, the Australian Taxation Office (ATO) has increased the value of a penalty unit from $110 to $170.

Penalty units are used by the ATO to calculate a wide range of penalties for taxpayers who fail to meet their tax obligations. For example, a very late tax return could incur a five unit penalty, the value of which would now be $850 (5 x 170), where previously the value would be $550 (5 x 110).

The change applies to penalties issued after 28 December 2012.