The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

6.2.3.30 Consequences of payment & non-payment of penalty

Payment of penalty

An infringement notice can be given as an alternative to commencing proceedings for a civil penalty order. The penalty in an infringement notice which a person is liable to pay, is one-fifth of the maximum penalty that a court could order in a civil penalty order.

An employer can pay the penalty specified in an infringement notice in order to avoid going to court. If the employer does not comply with an infringement notice, Centrelink or the FWO could bring proceedings for a civil penalty order. Once an employer has paid a penalty in accordance with an infringement notice Centrelink or the FWO cannot apply for a civil penalty for the same contravention and the employer is discharged from any liability in respect of the contravention in the infringement notice.

Extension of time to pay amount

A person to whom an infringement notice is given may apply for an extension to pay. If the application is made before the 28 day extension period is complete, the relevant Chief Executive may in writing, extend the period. If the Chief Executive does not approve the request for extension, the period to pay the infringement will end 28 days after the notice was issued or 7 days after the person was given notice of the decision not to extend the time to pay.

Non-payment of penalty

Where an employer does not comply with an infringement notice (or elects not to pay a pecuniary penalty), Centrelink or the FWO may decide to take further action.

If Centrelink or the FWO decides to pursue the matter, they must commence proceedings in the Federal Court of Australia or the Federal Circuit Court of Australia for a civil penalty order in respect of the contravention, no later than 6 years after the contravention. If the court is satisfied that the person has contravened a civil penalty provision, the court may on the application of Centrelink or the FWO order the person to pay to the Commonwealth such amount as the court determines appropriate, up to the maximum penalty specified in PPLAct section 147.

Act reference: PPLAct section 147 Civil penalty orders

Regulatory Powers (Standard Provisions) Act 2014 section 107 Effect of payment of amount, section 105 Extension of time to pay amount

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