Taxation Administration Act 1997

The amount of penalty tax payable in respect of a tax default is 25% of the amount of tax unpaid, subject to this Division.

The amount of penalty tax payable in respect of a notification default is 25% of the additional amount of tax that the taxpayer would have been assessed as liable to pay had the notification default not occurred, subject to this Division.

The Commissioner may increase the amount of penalty tax payable in respect of a tax default to 50% of the amount of tax unpaid if the Commissioner is satisfied that the tax default was caused wholly or partly by recklessness by the taxpayer (or a person acting on behalf of the taxpayer) as to the operation of a taxation law.

The Commissioner may increase the amount of penalty tax payable in respect of a notification default to 50% of the additional amount of tax that the taxpayer would have been assessed as liable to pay had the notification default not occurred if the Commissioner is satisfied that the notification default was caused wholly or partly by recklessness by the taxpayer (or a person acting on behalf of the taxpayer) as to the operation of section 34G, 46K, 61B, 61C, 61D, 61E, 61F, 70N, 104A or 104B of the Land Tax Act 2005, section 33 or 34 of the Commercial and Industrial Property Tax Reform Act 2024 or section 26 of the Windfall Gains Tax Act 2021(as the case requires).

The Commissioner may increase the amount of penalty tax payable in respect of a tax default to 75% of the amount of tax unpaid if the Commissioner is satisfied that the tax default was caused wholly or partly by the intentional disregard by the taxpayer (or a person acting on behalf of the taxpayer) of a taxation law.

The Commissioner may increase the amount of penalty tax payable in respect of a notification default to 75% of the additional amount of tax that the taxpayer would have been assessed as liable to pay had the notification default not occurred if the Commissioner is satisfied that the notification default was caused wholly or partly by the intentional disregard by the taxpayer (or a person acting on behalf of the taxpayer) of section 34G, 46K, 61B, 61C, 61D, 61E, 61F, 70N, 104A or 104B of the Land Tax Act 2005, section 33 or 34 of the Commercial and Industrial Property Tax Reform Act 2024 or section 26 of the Windfall Gains Tax Act 2021 (as the case requires).

The Commissioner may determine that no penalty tax is payable in respect of a tax default or notification default if the Commissioner is satisfied that—

the taxpayer (or a person acting on behalf of the taxpayer) took reasonable care to comply with the taxation law; or

the default occurred solely because of circumstances beyond the taxpayer's control (or, if a person acted on behalf of the taxpayer, because of circumstances beyond either the person's or the taxpayer's control) but not amounting to financial incapacity.