{"id":5116,"date":"2019-06-17T12:57:06","date_gmt":"2019-06-17T02:57:06","guid":{"rendered":"https:\/\/www.whistleblowingservice.com.au\/?page_id=5116"},"modified":"2019-06-17T12:57:06","modified_gmt":"2019-06-17T02:57:06","slug":"consequences","status":"publish","type":"page","link":"https:\/\/www.publicinterestdisclosure.com.au\/index.php\/consequences\/","title":{"rendered":"Consequences and Penalities"},"content":{"rendered":"

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Consequences of contravention<\/strong><\/h3>\n

There will be significant penalties for corporations (and individuals) rising from contraventions of the legislation. These are set out in the table below:<\/p>\n

\n\n\n\n\n\n\n\n\n\n
\n

Contravention<\/strong><\/p>\n<\/td>\n

\n

Penalty<\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

Civil Penalty provisions (Corporations Act<\/em>)<\/p>\n<\/td>\n<\/tr>\n

\n

Breach of confidentiality of identity of whistleblower
or
<\/em>Victimisation or threatened victimisation of whistleblower<\/p>\n<\/td>\n

\n
    \n
  • For an individual, 5,000 penalty units [$1.050M] or three times the benefit derived or detriment avoided; and<\/li>\n
  • For a body corporate, 50,000 penalty units [$10.5M], three times the benefit derived or detriment avoided, or 10% of the body corporate\u2019s annual turnover (up to 2.5 million penalty units [$525M]).<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
\n

Criminal offences (generally\u00a0Corporations Act\u00a0<\/em>and\u00a0Taxation Administration Act<\/em>)<\/p>\n<\/td>\n<\/tr>\n

\n

Breach of confidentiality of identity of whistleblower<\/p>\n<\/td>\n

\n

For an individual\u2026<\/p>\n

    \n
  • Under the\u00a0Corporations Act:\u00a0<\/em>6 months imprisonment or 30 penalty units [$6,300] or both<\/li>\n
  • Under the\u00a0Taxation Administration Act<\/em>: 6 months imprisonment or 60 penalty units [$12,600] or both<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
\n

Victimisation or threatened victimisation of whistleblower<\/p>\n<\/td>\n

\n

For an individual\u2026<\/p>\n

    \n
  • Under the\u00a0Corporations Act<\/em>: 2 years imprisonment or 120 [$25,200] penalty units or both<\/li>\n
  • Under the\u00a0Taxation Administration Act<\/em>: 2 years imprisonment or 240 penalty units [$50,400] or both<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
\n

Failure to have whistleblower policy (Corporations Act only)<\/p>\n<\/td>\n

\n

60 penalty units [$12,600]<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\n

[1]<\/a>\u00a0Corporations Act 2001\u00a0<\/em>(Cth) s 1644(1), introduced by the Whistleblower Bill s 12.<\/p>\n<\/div>\n

\n

[2]<\/a>\u00a0Corporations Act 2001\u00a0<\/em>(Cth) s 1644(2), introduced by the Whistleblower Bill s 12.<\/p>\n<\/div>\n

\n

[3]<\/a>\u00a0Corporations Act 2001\u00a0<\/em>(Cth) s 1317AI(1), introduced by the Whistleblower Bill s 9.<\/p>\n<\/div>\n

\n

[4]<\/a>\u00a0Corporations Act 2001\u00a0<\/em>(Cth) s 1317AI(2), introduced by the Whistleblower Bill s 9.<\/p>\n

A large proprietary company is currently defined in the\u00a0Corporations Act 2001\u00a0<\/em>(Cth) s 45A(3) as a proprietary company that satisfies at least two of the following in the financial year: (a) consolidated revenue $25 million or more; (b) gross assets of $12.5 million or more; (c) the company and any entities it controls have 50 or more employees. However, draft regulations were introduced for consideration in 2018 (Corporations Amendment (Proprietary Company Thresholds) Regulations 2018<\/a>), which would double those thresholds, meaning that fewer proprietary companies would be subject to these obligations.<\/p>\n<\/div>\n

\n

[5]<\/a>\u00a0The content as set out in\u00a0Corporations Act 2001\u00a0<\/em>(Cth) s 1317AI(5), introduced by the Whistleblower Bill s 9.<\/p>\n<\/div>\n

\n

[6]<\/a>\u00a0Corporations Act 2001\u00a0<\/em>(Cth) ss 1317AA and\u00a0Taxation Administration Act 1953\u00a0<\/em>(Cth) s 14ZZT, introduced by the Whistleblower Bill ss 2, 15.<\/p>\n<\/div>\n

\n

[7]<\/a>\u00a0Eligible whistleblower is defined at\u00a0Corporations Act 2001\u00a0<\/em>(Cth) s 1317AAA and, at a high level, includes an entity\u2019s officers, employees, contractors, associates and superannuation trustees. Also see\u00a0Taxation Administration Act 1953\u00a0<\/em>(Cth) s 14ZZU, introduced by the Whistleblower Bill s 15.<\/p>\n<\/div>\n

\n

[8]<\/a>\u00a0Eligible recipient is defined at\u00a0Corporations Act 2001\u00a0<\/em>(Cth) s 1317AAC. Importantly, a \u2018senior manager\u2019 or \u2018officer\u2019 of a company \u2013 both concepts under the Corporations Act (section 9<\/a>) \u2013 are a narrower class as compared with all employees, managers or supervisors of eligible whistleblowers. See also\u00a0Taxation Administration Act 1953\u00a0<\/em>(Cth) s 14ZZV, as introduced by the Whistleblower Bill s 15. This is a significant change from earlier drafts of the legislation, and should ensure that adequately responsible people have this responsibility, rather than it sitting with more junior employees.<\/p>\n<\/div>\n

\n

[9]<\/a>\u00a0Corporations Act 2001\u00a0<\/em>(Cth) ss 1317AADA, introduced by the Whistleblower Bill s 2.<\/p>\n<\/div>\n

\n

[10]<\/a>\u00a0Corporations Act 2001\u00a0<\/em>(Cth) ss 1317AAD, introduced by the Whistleblower Bill s 2.<\/p>\n<\/div>\n

\n

[11]<\/a>\u00a0Corporations Act 2001\u00a0<\/em>(Cth) ss 1317AA and\u00a0Taxation Administration Act 1953\u00a0<\/em>(Cth) s 14ZZT, introduced by the Whistleblower Bill ss 2, 15.<\/p>\n<\/div>\n

\n

[12]<\/a>\u00a0Corporations Act 2001\u00a0<\/em>(Cth) ss 1317AD, 1317AE and\u00a0Taxation Administration Act 1953\u00a0<\/em>(Cth) ss 14ZZZ, 14ZZZA, introduced by the Whistleblower Bill ss 9, 15.<\/p>\n<\/div>\n

\n

[13]<\/a>\u00a0Ibid.
[14]<\/a>\u00a0Whistleblower Bill s12<\/p>\n

[15]<\/a>\u00a0Corporations Act 2001\u00a0<\/em>(Cth) s 1317AI, as introduced by the Whistleblower Bill ss 9, 15.<\/p>\n<\/div>\n

\n

[16]<\/a>\u00a0https:\/\/asic.gov.au\/about-asic\u2026<\/a>\u00a0id=\u201dftn32\u2033><\/p>\n<\/div>\n<\/div>\n

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Consequences of contravention There will be significant penalties for corporations (and individuals) rising from contraventions of the legislation. These are set out in the table below: Contravention Penalty Civil Penalty provisions (Corporations Act) Breach of confidentiality of identity of whistleblowerorVictimisation or threatened victimisation of whistleblower For an individual, 5,000 penalty units [$1.050M] or three times […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"class_list":["post-5116","page","type-page","status-publish","hentry"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t