What is an ATO penalty unit worth in 2026?
Short answer
A Commonwealth penalty unit is $364 for penalties arising on or after 1 July 2026, up from $330. The ATO expresses many penalties, including the failure to lodge penalty, as a number of units, so the unit value sets the dollar amount. A small entity's late lodgement penalty is now $364 per 28 days, capped at $1,820. Penalties can be remitted; see our penalty remission guide.
Penalty unit values by date
The value that applies is the one in force when the penalty arose, so an older lodgement can attract an older rate.
| Period | Penalty unit |
|---|---|
| On or after 1 July 2026 | $364 |
| 7 November 2024 to 30 June 2026 | $330 |
| 1 July 2023 to 6 November 2024 | $313 |
| 1 January 2023 to 30 June 2023 | $275 |
| 1 July 2020 to 31 December 2022 | $222 |
| 1 July 2017 to 30 June 2020 | $210 |
The unit is set in the Crimes Act and applies to all Commonwealth penalties, not just tax. It is indexed to inflation every three years and Parliament has also lifted it directly, which is why the value has risen by more than 70% since 2017.
How units turn into ATO penalties
The most common tax penalty measured in units is the failure to lodge penalty: one unit per 28 days late, up to five units, multiplied by two for medium entities and five for large ones. At $364 that is a maximum of $1,820, $3,640 and $9,100 per document. Other unit based penalties include failing to keep proper records, failing to give the ATO information it has asked for, and failing to meet certain reporting obligations.
Not every ATO penalty is unit based. Penalties for false or misleading statements are a percentage of the tax shortfall, typically 25%, 50% or 75% depending on the level of care. Interest charges such as general interest charge are a percentage rate, not units.
Penalties adding up on your account?
Find out which ones can be remitted and how to ask.
What to do if you have been penalised
First check the maths. The notice should show the number of units, the unit value and the entity size multiplier. Errors in entity size are worth querying, because a small business classed as medium pays double. Second, lodge anything still outstanding, because the ATO will not remit while a document is missing. Third, ask for remission. The ATO remits unit based penalties where the delay was outside your control or was a one off by someone with a good record; the grounds are covered in reasons the ATO accepts for penalty remission.
Penalties are not tax deductible and interest runs on them if they are left unpaid, so a penalty that cannot be remitted is best paid or folded into an ATO payment plan rather than ignored.
What to do next
- Check the penalty notice for the number of units, the unit value used and the entity size multiplier.
- Lodge any outstanding document the penalty relates to.
- Request remission if the delay was caused by something outside your control or was a one off lapse.
Related questions
Do state penalty units apply to ATO penalties?
No. States and territories have their own penalty unit values for state laws such as payroll tax and traffic fines. The ATO administers Commonwealth law, so Commonwealth penalty units apply to all ATO penalties regardless of where you live.
Which penalty unit value applies to an old unlodged return?
The value in force when the penalty arose, which for a failure to lodge penalty is tied to when the lodgement fell due rather than when you eventually lodge. A return that was due in 2024 is generally penalised at the 2024 unit value, even if the penalty is only raised in 2026. Check the notice, and query it if the wrong value has been used.
More questions: 15 ATO interest and penalties questions answered · Full guide: GIC remission