Document ID: chunk:federal_register_of_legislation:C2024C00688:section:64:p1
Version: federal_register_of_legislation:C2024C00688
Segment Type: section
Provision Reference: s 64 (pt 1/2)
Character Range: 79034–81749

64  Determining pecuniary penalty for contravention of minimum stockholding obligation

Maximum pecuniary penalty for contravention of section 7
 (1) If:
 (a) an entity is subject to the minimum stockholding obligation in relation to an MSO product on an obligation day; and
 (b) the entity contravenes section 7 by not holding at least the quantity of stocks of the product designated for the entity on the obligation day;
then, for the purposes of the pecuniary penalty set out at the foot of section 7, the number of penalty units is worked out using the following formula:
  where:
applicable multiplier means:
 (a) if the entity is a body corporate—2; and
 (b) otherwise—0.2.
designated quantity of stocks means the quantity (in megalitres) of stocks of the product designated for the entity on the obligation day (see section 13).
number of non compliant days for the obligation day means:
 (a) 1; or
 (b) if the entity also contravenes section 7 on the next obligation day by not holding at least the quantity of stocks of the product designated for the entity on that next obligation day—the number of days in the period:
 (i) starting on the obligation day; and
 (ii) ending on the day before the next obligation day.

Maximum pecuniary penalty for contravention of subsection 8(1)
 (2) If:
 (a) an entity that has an Australian controlling corporation is subject to the minimum stockholding obligation in relation to an MSO product on an obligation day; and
 (b) the Australian controlling corporation contravenes subsection 8(1) by not ensuring that the entity complies with section 7 in relation to the product on the obligation day;
then, for the purposes of the pecuniary penalty set out at the foot of subsection 8(1), the number of penalty units is worked out using the following formula:
  where:
designated quantity of stocks means the quantity (in megalitres) of stocks of the product designated for the entity on the obligation day (see section 13).
number of non compliant days for the obligation day means:
 (a) 1; or
 (b) if the Australian controlling corporation also contravenes subsection 8(1) on the next obligation day by not ensuring that the entity holds at least the quantity of stocks of the product designated for the entity on that next obligation day—the number of days in the period:
 (i) starting on the obligation day; and
 (ii) ending on the day before the next obligation day.

Corporate multiplier not applicable
 (3) Despite paragraph 82(5)(a) of the Regulatory Powers Act, the pecuniary penalty an entity is ordered to pay under section 82 of that Act for a contravention of section 7 of this Act must not be more than the amount worked out using the formula in subsection