Why a looming $18m penalty cap has the profession on edge
What happened
Treasury has proposed a bill that expands the Tax Practitioners Board’s enforcement toolkit, including interim suspension power and a much larger maximum civil penalty. The rules allow an interim suspension for up to 90 days (with 14 days’ notice) and recalibrate penalties to a ceiling tied to 50,000 penalty units (~$18.2 million) for corporate entities, making suspension and penalty risk operationally real for buyer-supplier continuity. Watch supplier contract responses, insurers’ appetite, and whether firms start tightening quote windows or adding remediation fees
Why the category manager should care
Treat this as a material change to supplier risk posture: suppliers will either absorb more risk, price it, or contract to transfer it
Key facts
- Interim suspension power up to 90 days with 14 days’ notice
- Maximum civil penalty cited at 50,000 penalty units (corporate-level ceiling)
- TPB powers expanded to include enforceable undertakings and infringement notice options