Graham Perrett (Moreton, Australian Labor Party) Share this | Link to this | Hansard source

I rise to speak on the Crimes Legislation Amendment (Penalty Unit) Bill 2015. The measures contained in this bill are not controversial and they reflect an appropriate contemporising of the legislation. This bill amends the Crimes Act 1914. It increases the amount of the Commonwealth penalty unit and provides that the amount will be automatically adjusted every three years in line with inflation. These amendments increase the Commonwealth penalty unit amount from $170 to $180 and provide a mechanism for the amount to be indexed every three years according to the consumer price index.

Penalty units are used to describe the amount payable for monetary penalties imposed for criminal offences in Commonwealth legislation and territory ordinances. Commonwealth penalties are generally expressed in terms of penalty units rather than specific values to assist with the adjustment of penalties across the Commonwealth statute book. The penalty unit mechanism allows the maximum monetary penalty for all offences under Commonwealth law or territory ordinances to be automatically adjusted with a single amendment to section 4AA of the Crimes Act. This removes the need for multiple legislative amendments and ensures that monetary penalties in Commonwealth legislation and territory ordinances remain comparable.

Maintaining the value of the penalty unit over time is necessary to ensure it reflects changes in real terms. This ensures that financial penalties for Commonwealth offences keep pace with inflation and continue to remain effective in deterring unlawful behaviour. When the penalty unit was introduced in 1992, its value was set at $100. This value was adjusted to $110 in 1997 and to $170 in 2012. Both increases were made in line with changes in the CPI.

The 2015-16 budget included this measure to increase the value of the penalty unit from $170 to $180, with effect from 31 July 2015. This increase is broadly consistent with inflation since the value was last adjusted in December 2012. The budget measure also provided that the government would introduce ongoing automatic indexation of the penalty unit value based on the CPI. Indexation will occur on 1 July every three years, with the first indexation occurring on 1 July 2018.

In summary, Labor supports this bill, which is non-controversial, reflecting an appropriate contemporising of the legislation. Maintaining the value of the penalty unit over time is necessary to ensure it reflects changes in real terms. This ensures that financial penalties for Commonwealth offences keep pace with inflation and continue to remain effective in deterring unlawful behaviour.

When the penalty unit was introduced in 1992, its value was set at $100. Labor passed legislation in 2012 to adjust the value to $170 in line with CPI. Prior to this the value had not been adjusted since 1997, when it was adjusted in line with CPI to $110. This was part of Labor's commitment to cracking down on serious and organised crime. Labor wants to ensure that the courts have the ability to impose appropriate penalties to deal with these types of offenders. We support this increase and the mechanism to index the amount every three years according to CPI, which sends a strong message to criminals that crime does not pay.

Michael Keenan (Stirling, Liberal Party, Minister for Justice) Share this | Link to this | Hansard source

The Crimes Legislation Amendment (Penalty Unit) Bill 2015 will ensure that Commonwealth penalties keep pace with inflation and continue to provide an effective deterrent to criminal activity. The bill amends section 4AA of the Crimes Act 1914, which applies across the statute book to set the value of monetary penalties in Commonwealth legislation and Territory ordinances. The bill will increase the value of the penalty unit from $170 to $180. This is broadly in line with the increases to the consumer price index since the value was last updated in 2012.

The bill also provides a mechanism for indexing the penalty unit value every three years, beginning in 2018, according to the CPI. By instituting an automatic indexation process, the bill provides an efficient mechanism for maintaining the penalty unit value into the future while still ensuring that value is made clear for members of the public, enforcing agencies and the court. Strong penalties are an essential component of an effective justice system. By maintaining the value of the penalty unit, the bill ensures that Commonwealth offences will continue to operate as intended in deterring unlawful behaviour and punishing offenders.

Question agreed to.

Bill read a second time.