Penalty unit

A penalty unit is the indexed currency that fines are quoted in under Australian legislation. The law states “the penalty is X penalty units” and the value of one unit is set separately and re-indexed periodically. Unit value × unit count = maximum fine.

Common penalty unit values (May 2026):

• Commonwealth: $330 per unit for offences committed on or after 7 November 2024 (Crimes Act 1914 s 4AA). Next indexation: 1 July 2026.
• NSW: $110 per unit (Crimes (Sentencing Procedure) Act 1999 s 17).
• VIC, QLD, WA, SA, TAS, NT, ACT: each state and territory sets its own penalty unit value under its own legislation. Values are indexed annually or biennially. Check the relevant state Act or Treasury notice before quoting a figure.

Penalty units appear across legislation relevant to residential building: state building Acts (Home Building Act NSW, Building Act Vic, QBCC Act Qld), WHS Acts and Regulations, environmental and planning Acts, gas and electrical safety Acts, and consumer law.

Reading a fine. “200 penalty units” for a corporation under the Commonwealth (where corporate fines are 5x the individual rate) is $330 × 200 × 5 = $330,000. Under NSW the same “200 penalty units” reads as $110 × 200 = $22,000 for an individual.

For builders, penalty-unit references in building Acts and WHS regs set the upper bounds for breaches: unlicensed work, failure to obtain a CC or DA, breach of a stop-work order, failure to lodge home warranty. Values index up over time; the unit count in the Act stays the same. The dollar value used in legal advice must match the value applying at the date the offence was committed, not the date the matter is heard.

Also known as: PU, fine unit.

Category: Legislation / licensing / penalties.

Related

• Stop-work orders
• Security of Payment Act QLD
• SafeWork NSW

See also

• Builder licence renewal QLD
• Notifiable work QBCC Form 4

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Last updated: 2026-05-14. Verified: 2026-05-14.