Document ID: chunk:federal_register_of_legislation:C2025C00180:clause:1_2:p5
Version: federal_register_of_legislation:C2025C00180
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 5/16)
Character Range: 1370771–1373448

total value of all benefits received or receivable (directly or indirectly) by the entity and *associates of the entity in respect of the *scheme;
 (c) either:
 (i) 10% of the *aggregated turnover of the entity for the most recent income year to end before the entity contravened, or began to contravene, the provision; or
 (ii) if the amount worked out under subparagraph (i) is greater than an amount equal to 2.5 million penalty units—2.5 million penalty units.
Note: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.
 (4B) Despite subsections (4) and (4A), the maximum amount of the penalty for a contravention by an entity that is:
 (a) a partner in a partnership that is a *significant global entity; or
 (b) a trustee of a trust that is a significant global entity;
is the greatest of the following:
 (c) 50,000 penalty units;
 (d) 3 times the total value of all benefits received or receivable (directly or indirectly) by the significant global entity and *associates of the significant global entity in respect of the *scheme;
 (e) either:
 (i) 10% of the *aggregated turnover of the significant global entity for the most recent income year to end before the entity contravened, or began to contravene, the provision; or
 (ii) if the amount worked out under subparagraph (i) is greater than an amount equal to 2.5 million penalty units—2.5 million penalty units.
Note: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.

Principles relating to penalties
 (5) In deciding what penalty is appropriate for a contravention of subsection (1), (1A) or (2) by an entity, the Federal Court of Australia may have regard to all matters it considers relevant, including:
 (a) the amount of the benefit received or receivable (directly or indirectly) by the entity and *associates of the entity in respect of the *scheme; and
 (b) the deterrent effect that any penalty may have; and
 (c) the amount of loss or damage incurred by scheme participants; and
 (d) the nature and extent of the contravention; and
 (e) the circumstances in which the contravention took place, including the deliberateness of the entity's conduct and whether there was an honest and reasonable mistake of law; and
 (f) the period over which the conduct extended; and
 (g) whether the entity took any steps to avoid the contravention; and
 (h) whether the entity has previously been found by the Court to have engaged in the same or similar conduct; and
 (i) the degree of the entity's cooperation with the Commissioner.

Recovery of penalty
 (6) The penalty is a civil debt payable to the Commonwealth, and the Commissioner may, on behalf of the