The Australian Taxation Office (ATO) announced updates to the promoter penalty laws in a release on 28 August 2024. The maximum penalties have significantly increased, now reaching up to AUD 780 million.

Promoter penalty laws deter and take action against the promotion of unlawful tax schemes. The Parliament has recently passed legislative changes to the promoter penalty laws, which operate from 1 July 2024.

These changes include:

  • Increasing the maximum penalties for advisers and firms who promote unlawful tax schemes from AUD 7.8 million to AUD 780 million;
  • Increasing the time limit for the ATO to bring Federal Court proceedings on promoter penalties from four years to six years after the conduct occurred;
  • Expanding the scope of schemes to which the laws apply;
  • Changing the definition of when an entity is a “promoter” of a “tax exploitation scheme”.

How to report unlawful tax schemes

If anyone is offered an unlawful tax scheme, they should reject it and report it to the ATO confidentially by:

  • Completing the tip-off form on our website or in the ATO app ‘contact us’ section, or
  • Phone the tip-off hotline at 1800 060 062.