Treat the new Part as a penalty-bearing regime. The Act adds Part 2-4 to the provisions listed in sections 224, 247, 248 and 251, and inserts a penalty unit row in section 134C.
Who it binds. A person who contravenes Part 2-4, and the compliance, legal and finance teams that assess exposure.
Operative term. a provision of Part 2-4
What this means in practice
The penalty settings matter for risk assessment, not just for a lawyer. The Act inserts a row in the penalty unit table: 600 units for a listed corporation, 60 for another body corporate and 12 for a person who is not a body corporate. It also adds Part 2-4 to the civil penalty table, where the amount for a body corporate is the greater of the amounts in subsection 224(3A), with the details column recording $2,500,000. The infringement notice and enforcement provisions are extended to the new Part. Check the current compilation of section 224 for a later amendment before quoting a maximum, because the penalty settings can change after this Act. The practical effect is that the same governance, evidence and escalation used for the existing consumer law penalties should cover the new duties.
How to test it
Map each new duty to the penalty provision that can follow it. Check whether the entity is a listed corporation, another body corporate or an individual, because the penalty unit row differs. Check whether an infringement notice route is available for the alleged contravention. Record the maximum and the source, and do not state a single figure as the universal maximum. Update the risk register when the regulations or the penalty settings change.
Evidence to keep
The Act does not prescribe these records. They are the artefacts our reading says a regulator or auditor may ask for; keep the ones that fit your business and the provision.
- Penalty mapEach duty, the provision it sits in and the penalty route that can follow.
- Entity classificationWhether the supplier is a listed corporation, another body corporate or an individual.
- Risk registerThe assessed exposure and the mitigation for each duty.
- Infringement noteThe provisions for which an infringement notice may be issued.
- Board reportThe report that explains the penalty settings and the compliance response.
What to do first
- Add the new Part to the existing consumer law penalty map.
- Classify the entity correctly before quoting a penalty unit figure.
- Do not state one figure as the maximum for every supplier.