Infringement notices: Your rights

This is Information Sheet 275 (INFO 275). It explains your options if you receive an infringement notice.

On this page:

• Why we issue infringement notices
• What you will receive
• How the penalty is calculated
• Paying the penalty
• Your options for responding
• Our decision on your application
• Withdrawal of an infringement notice
• Publication of infringement notices
• Where to find more information
• Important notice

Why we issue infringement notices

ASIC may issue an infringement notice if we believe, on reasonable grounds, that there has been a contravention of an infringement notice provision.

We are more likely to issue an infringement notice, as an alternative to court-based action, if:

• the alleged misconduct is relatively minor or less serious, and does not indicate a broader pattern of misconduct by the entity or within an industry
• we are not required to make a complex assessment of facts to evaluate whether the alleged misconduct contravened the law
• an infringement notice would be a proportionate enforcement response, considering the nature and size of the entity and the need for general and specific deterrence.

ASIC has the statutory power to issue infringement notices under the following legislation:

• Australian Securities and Investments Commission Act 2001 (ASIC Act)
• Corporations Act 2001 (Corporations Act)
• National Consumer Credit Protection Regulations 2010 (National Credit Regulations)
• National Consumer Credit Protection Act 2009 (National Credit Act)
• Insurance Contracts Act 1984 (Insurance Contracts Act).

We must issue infringement notices within 12 months of the date when the contravention is alleged to have taken place.

What you will receive

If you are issued with an infringement notice, you will also receive a covering letter, an invoice and this information sheet. The covering letter will set out the grounds on which we believe there has been a contravention of an infringement notice provision.

How the penalty is calculated

The amount payable under an infringement notice is calculated using ‘penalty units’. The dollar value of a penalty unit is determined by s4AA of the Crimes Act 1914.

The total amount of an infringement notice is based on the number of penalty units applicable to the infringement, multiplied by the penalty unit value that applied at the time of the alleged conduct.

Note: See www.asic.gov.au/penalties for more information about penalties, including the value of a penalty unit.

Paying the penalty

Payment of the penalty is due within 28 days of the day after receiving the infringement notice.

Instructions for how to pay are provided on the invoice received with the infringement notice.

What to do if you need more time to pay

Two options are available if you need more time to pay your infringement notice penalty: you can apply for an extension of time, or for a payment instalment plan: see Your options for responding.

If you apply to pay the penalty by instalments, it is important to ensure that you propose a feasible instalment plan.

If we grant you an extension, or allow an instalment payment plan, you must pay the penalty in accordance with those arrangements.

Effect of payment of the penalty

If you pay the penalty in full and on time, your liability for the alleged contravention is discharged and ASIC cannot commence a prosecution or civil proceedings for the alleged contravention.

If you pay the penalty, you will not be presumed to have admitted guilt for the alleged contravention, nor to have been found guilty of the alleged contravention.

However, payment of the penalty does not preclude a consumer from taking civil action against you for the alleged contravention, or ASIC from applying to the court on behalf of a plaintiff for a compensation order under the National Credit Act for loss or damage arising from the alleged contravention.

Effect of non-payment of the penalty

You are not obliged by law to pay the penalty contained in an infringement notice and failure to pay does not create a debt that ASIC can enforce.

If you do not pay an infringement notice, ASIC will generally pursue court-based action. The court may impose a higher penalty than the penalty specified in the infringement notice.

Your options for responding

You can choose to pay the infringement notice in the timeframe required. You can also choose not to pay the infringement notice.

Alternatively, you can apply for:

• an extension of time to pay the penalty
• a penalty payment instalment plan
• withdrawal of an infringement notice.

How to make an application

Applications for any of the three requests identified above must be made in writing to ASIC within 28 days of the day after receiving the infringement notice.

Send your application to the addressee identified as the point of contact on your infringement notice.

The following ‘Requirements for applications’ also appear on your infringement notice, outlining the information to include if you apply:

• the unique identification code found at the top of the infringement notice
• your reasons for requesting the application
• if applying for an instalment plan, the details of the amount and frequency of the instalments you propose to pay.

Our decision on your application

ASIC has the discretion to grant or refuse an application for extending your payment time, setting up an instalment plan or withdrawing an infringement notice. We must notify you of our decision within 14 days of receiving your application.

However, if you do not receive a response within 14 days, ASIC is deemed to have refused your application.

Unsuccessful applications to ASIC are not reviewable by the Administrative Appeals Tribunal.

Withdrawal of an infringement notice

You may apply to have an infringement notice withdrawn: see Your options for responding.

In addition to your application’s written representations for an infringement notice to be withdrawn, we may consider:

• whether you have previously been found to have contravened a provision of the relevant Act that the notice was issued under
• the circumstances of the alleged contravention
• whether you have paid an amount for a previous infringement notice for a contravention of the relevant Act that a prior notice was issued under
• any other matter we consider relevant.

ASIC may also withdraw an infringement notice of its own volition.

If an infringement notice is withdrawn, ASIC will refund any penalty amount that has been paid.

Publication of infringement notices

Once an infringement notice has been paid, ASIC will usually issue a media release and publish a copy of the notice and the date of compliance on the ASIC website. The media release will usually include:

• your name
• the amount of the penalty paid
• the conduct specified in the notice for which the infringement notice was issued
• confirmation that you have complied with the infringement notice
• acknowledgement that compliance with the notice is not an admission of guilt or liability
• acknowledgement that you are not regarded as having contravened the provision specified in the notice.

Where to find more information

• The Federal Register of Legislation provides information on the general legal provisions relating to infringement notices.
• Information Sheet 9 ASIC decisions: Your rights (INFO 9).
• Contact us online or call 1300 300 630.

Important notice

Please note that this information sheet is a summary giving you basic information about a particular topic. It does not cover the whole of the relevant law regarding that topic, and it is not a substitute for professional advice. We encourage you to seek your own professional advice to find out how the applicable laws apply to you, as it is your responsibility to determine your obligations.

You should also note that because this information sheet avoids legal language wherever possible, it might include some generalisations about the application of the law. Some provisions of the law referred to have exceptions or important qualifications. In most cases, your particular circumstances must be taken into account when determining how the law applies to you.

ASIC has authorised the Market Disciplinary Panel (MDP) to issue infringement notices for alleged breaches of market integrity rules. More information about the MDP and its associated disciplinary framework is set out in Regulatory Guide 216 Markets Disciplinary Panel (RG 216).

Guidance on infringement notices for breaches of continuous disclosure obligations is set out in Regulatory Guide 73 Continuous disclosure obligations: Infringement notices (RG 73).