Competition and Consumer Amendment (Industry Code Penalties) Act 2014

Administered by Department of the Treasury

Legislation au C2014A00107 In force Act

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No. 107, 2014

An Act to amend the Competition and Consumer Act 2010, and for related purposes

Contents

1 Short title

2 Commencement

3 Schedule(s)

Schedule 1—Amendments

Competition and Consumer Act 2010

Competition and Consumer Amendment (Industry Code Penalties) Act 2014

No. 107, 2014

An Act to amend the Competition and Consumer Act 2010, and for related purposes

[Assented to 24 September 2014]

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Competition and Consumer Amendment (Industry Code Penalties) Act 2014.

2 Commencement

This Act commences on 1 January 2015.

3 Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Amendments

Competition and Consumer Act 2010

1 Subsection 51ACA(1)

Insert:

infringement notice means an infringement notice issued under subsection 51ACD(1).

infringement notice compliance period: see subsection 51ACI(1).

2 Section 51AD

Renumber as section 51ACB.

3 After Division 2 of Part IVB

Insert:

Division 2A—Infringement notices

51ACC Purpose and effect of this Division

(1) The purpose of this Division is to provide for the issue of an infringement notice to a person for an alleged contravention of a civil penalty provision of an industry code as an alternative to proceedings for an order under section 76 for the payment of a pecuniary penalty.

(2) This Division does not:

(a) require an infringement notice to be issued to a person for an alleged contravention of a civil penalty provision of an industry code; or

(b) affect the liability of a person to proceedings under section 76 in relation to an alleged contravention of a civil penalty provision of an industry code if:

(i) an infringement notice is not issued to the person for the contravention; or

(ii) an infringement notice issued to the person for the contravention is withdrawn under section 51ACJ; or

(c) prevent a court from imposing a higher penalty than the penalty specified in the infringement notice if the person does not comply with the notice.

51ACD Issuing an infringement notice

(1) If the Commission has reasonable grounds to believe that a person has contravened a civil penalty provision of an industry code, the Commission may issue an infringement notice to the person.

(2) The Commission must not issue more than one infringement notice to the person for the same alleged contravention of the civil penalty provision of the industry code.

(3) The infringement notice does not have any effect if the notice:

(a) is issued more than 12 months after the day that the contravention of the civil penalty provision of the industry code is alleged to have occurred; or

(b) relates to more than one alleged contravention of a civil penalty provision of the industry code by the person.

51ACE Matters to be included in an infringement notice

(1) An infringement notice must:

(a) be identified by a unique number; and

(b) state the day on which it is issued; and

(d) identify the Commission and state how it may be contacted; and

(e) give details of the alleged contravention, including:

(i) the day of the alleged contravention; and

(ii) the civil penalty provision of the industry code that was allegedly contravened; and

(f) state the maximum pecuniary penalty that the court could order the person to pay under section 76 for the alleged contravention; and

(g) specify the penalty that is payable in relation to the alleged contravention; and

(h) state that the penalty is payable within the infringement notice compliance period for the notice; and

(i) state that the penalty is payable to the Commission on behalf of the Commonwealth; and

(j) explain how payment of the penalty is to be made; and

(k) explain the effect of sections 51ACG, 51ACH, 51ACI and 51ACJ.

51ACF Amount of penalty

The penalty to be specified in an infringement notice that is to be issued to a person, in relation to an alleged contravention of a civil penalty provision of an industry code, must be a penalty equal to the following amount:

(a) if the person is a body corporate—50 penalty units;

(b) otherwise—10 penalty units.

51ACG Effect of compliance with an infringement notice

(1) This section applies if:

(a) an infringement notice for an alleged contravention of a civil penalty provision of an industry code is issued to a person; and

(b) the person pays the penalty specified in the infringement notice within the infringement notice compliance period and in accordance with the notice; and

(2) The person is not, merely because of the payment, regarded as having contravened the civil penalty provision of the industry code.

(3) No proceedings (whether criminal or civil) may be started or continued against the person, by or on behalf of the Commonwealth, in relation to the alleged contravention of the civil penalty provision of the industry code.

51ACH Effect of failure to comply with an infringement notice

If:

(a) an infringement notice for an alleged contravention of a civil penalty provision of an industry code is issued to a person; and

(b) the person fails to pay the penalty specified in the infringement notice within the infringement notice compliance period and in accordance with the notice; and

the person is liable to proceedings under section 76 in relation to the alleged contravention of the civil penalty provision of the industry code.

51ACI Infringement notice compliance period for infringement notice

(1) Subject to this section, the infringement notice compliance period for an infringement notice is the period of 28 days beginning on the day after the day that the infringement notice is issued by the Commission.

(2) The Commission may extend, by notice in writing, the infringement notice compliance period for the infringement notice if the Commission is satisfied that it is appropriate to do so.

(3) Only one extension may be given and the extension must not be for longer than 28 days.

(4) Notice of the extension must be given to the person who was issued the infringement notice.

(5) A failure to comply with subsection (4) does not affect the validity of the extension.

(6) If the Commission extends the infringement notice compliance period for an infringement notice, a reference in this Division to the infringement notice compliance period for an infringement notice is taken to be a reference to the infringement notice compliance period as so extended.

51ACJ Withdrawal of an infringement notice

Representations to the Commission

(1) A person to whom an infringement notice has been issued for an alleged contravention of a civil penalty provision of an industry code may make written representations to the Commission seeking the withdrawal of the infringement notice.

(2) Evidence or information that the person, or a representative of the person, gives to the Commission in the course of making representations under subsection (1) is not admissible in evidence against the person or representative in any proceedings (other than proceedings for an offence based on the evidence or information given being false or misleading).

Withdrawal by the Commission

(3) The Commission may, by written notice (the withdrawal notice) given to the person to whom an infringement notice was issued, withdraw the infringement notice if the Commission is satisfied that it is appropriate to do so.

(4) Subsection (3) applies whether or not the person has made representations seeking the withdrawal.

Content of withdrawal notices

(5) The withdrawal notice must state:

(a) the name and address of the person; and

(b) the day on which the infringement notice was issued to the person; and

(d) that proceedings under section 76 may be started or continued against the person in relation to the alleged contravention of the civil penalty provision of the industry code.

Time limit for giving withdrawal notices

(6) To be effective, the withdrawal notice must be given to the person within the infringement notice compliance period for the infringement notice.

Refunds

(7) If the infringement notice is withdrawn after the person has paid the penalty specified in the infringement notice, the Commission must refund to the person an amount equal to the amount paid.

4 Section 51AE

Before “The”, insert “(1)”.

5 At the end of section 51AE

Add:

(2) If regulations prescribe an industry code, the industry code may prescribe pecuniary penalties not exceeding 300 penalty units for civil penalty provisions of the industry code.

6 Subparagraph 76(1)(a)(iii)

Repeal the subparagraph, substitute:

(iii) section 95AZN;

(iv) a civil penalty provision of an industry code; or

7 After paragraph 76(1A)(c)

Insert:

(ca) for each act or omission to which this section applies that relates to a civil penalty provision of an industry code—the amount set out in the civil penalty provision of the industry code; and

8 After paragraph 76(1B)(a)

Insert:

(aaa) for each act or omission to which this section applies that relates to a civil penalty provision of an industry code—the amount set out in the civil penalty provision of the industry code; and

[Minister’s second reading speech made in—

House of Representatives on 17 July 2014

Senate on 1 September 2014]

(163/14)

Overview

The Competition and Consumer Amendment (Industry Code Penalties) Act 2014, enacted in 2014, was introduced by the Parliament of Australia to amend the Competition and Consumer Act 2010, with a view to improving the enforcement mechanisms for industry codes. This legislation aims to provide an alternative to traditional court proceedings by allowing the Australian Competition and Consumer Commission (ACCC) to issue infringement notices for alleged contraventions of civil penalty provisions in industry codes. The policy objective behind this amendment is to streamline the enforcement process and provide a more efficient means of addressing minor breaches of industry codes, which can reduce the burden on the courts and offer a quicker resolution for both the ACCC and the alleged offenders. The Act does not mandate the issuance of infringement notices, ensuring that the ACCC retains the discretion to pursue more serious cases through traditional court proceedings. Importantly, it maintains the option for courts to impose penalties exceeding those specified in infringement notices if they deem it necessary. Additionally, it outlines the process for issuing, complying with, and withdrawing infringement notices, as well as the consequences of non-compliance. This amendment seeks to balance enforcement efficiency with the protection of the rights of individuals and corporations subject to industry code regulations.

Scope and Application

The Competition and Consumer Amendment (Industry Code Penalties) Act 2014 amends the Competition and Consumer Act 2010 to introduce a new framework for the issuance of infringement notices for alleged contraventions of civil penalty provisions within industry codes. This amendment applies to any person who has contravened a civil penalty provision of an industry code, which may include businesses, corporations, or individuals within specific industries. The Act allows the Australian Competition and Consumer Commission (ACCC) to issue infringement notices as an alternative to pursuing court proceedings for alleged contraventions, subject to certain conditions. The infringement notice must be issued within 12 months of the alleged contravention and cannot relate to more than one alleged contravention. The geographic reach of this amendment is national, as the Competition and Consumer Act 2010 is a Commonwealth Act. The Act does not specify any exclusions or exemptions, but it does note that the issuance of an infringement notice is not mandatory and does not affect the ACCC's ability to commence proceedings if the notice is not issued or is withdrawn. The application and scope of the infringement notice provisions can be further detailed through subordinate instruments, such as regulations, which may specify the industry codes to which the provisions apply and the penalties associated with them.

Key Provisions

The Competition and Consumer Amendment (Industry Code Penalties) Act 2014 amends the Competition and Consumer Act 2010 by introducing provisions for the issuance of infringement notices for alleged contraventions of civil penalty provisions in industry codes (sections 51ACC, 51ACD). These amendments allow the Australian Competition and Consumer Commission (ACCC) to issue an infringement notice as an alternative to proceedings for an order under section 76 for the payment of a pecuniary penalty. The infringement notice must be issued within 12 months of the alleged contravention, and it must include specific details such as the penalty amount, payment instructions, and the effects of compliance or failure to comply with the notice (sections 51ACE, 51ACG, 51ACH). The penalty amount is set at 50 penalty units for bodies corporate and 10 penalty units for individuals (section 51ACE). The infringement notice compliance period is 28 days from the date of issuance, but it can be extended once for up to 28 days by the ACCC (section 51ACI). The person who receives the infringement notice can make representations for its withdrawal, and the ACCC can withdraw the notice if deemed appropriate (sections 51ACJ, 51ACG). Under this Act, the ACCC has the discretion to issue infringement notices for alleged contraventions of civil penalty provisions of industry codes but is not obligated to do so (section 51ACD). If an infringement notice is issued, the ACCC must follow certain procedures, such as ensuring the notice includes all required details and that it is not issued more than 12 months after the alleged contravention (section 51ACE). The person who receives the infringement notice has the option to pay the penalty specified within the compliance period to avoid proceedings under section 76 (sections 51ACG, 51ACH). Failure to comply with the infringement notice within the specified period makes the person liable to proceedings for the contravention (section 51ACH). The ACCC can withdraw an infringement notice if it is satisfied that it is appropriate to do so, and if the person has already paid the penalty, the ACCC must refund the amount (section 51ACJ). The Act also outlines the consequences for breaches of its provisions. Failure to comply with an infringement notice within the specified compliance period results in the person being liable to proceedings under section 76, which may include the imposition of pecuniary penalties (section 51ACH). The penalties for contraventions of civil penalty provisions in industry codes can be prescribed by the industry code itself, with a maximum limit of 300 penalty units (section 51AE). The Act ensures that the withdrawal of an infringement notice does not affect the admissibility of evidence or information provided in the representations, except in cases where the evidence or information is false or misleading (section 51ACJ). The Act thus establishes a framework for the issuance and compliance with infringement notices for industry code contraventions, while also setting out the consequences for non-compliance and the conditions under which the ACCC can withdraw an infringement notice.

Area of Law: Competition Law; Consumer Law
Instrument: Act
Concepts: Commencement Provisions; Definitions & Interpretation; Civil Penalty Provisions; Enforcement Powers; Compliance Obligations

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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