On 28 October 2026, the ATO published a statistical overview of behavioural penalties imposed for the 2024–25 and 2025–26 financial years. The report categorizes penalties by type (e.g., false or misleading statements, taking a position not reasonably arguable, scheme penalties), taxpayer segment (individuals, small business, large corporates), and tax type. The data reveals a continued focus on promoter penalties and penalties related to aggressive tax planning schemes. The release coincides with the ATO’s broader transparency agenda and provides practitioners with insights into compliance risk areas.
Key Takeaways
- Penalty Volume Increase: The number of behavioural penalties issued rose by 12% in 2025–26 compared to the prior year, driven largely by increased audit activity in the high-wealth and large corporate segments.
- Scheme Penalties Dominant: Promoter and scheme-related penalties accounted for over 40% of total penalty amounts, reflecting the ATO’s focus on intermediaries facilitating aggressive tax arrangements.
- Reasonable Arguable Position Threshold: The data underscores the importance of obtaining independent legal advice for positions that may not be reasonably arguable, as penalties of up to 75% of the tax shortfall can apply.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement