General informationThe figures here are statutory maximums, not predictions. A court decides the actual sentence or penalty in each case. ASIC administers the Act, and a lawyer can advise on a particular matter.
Penalty units, and what one is worth
Corporations Act penalties are written in penalty units. ASIC explains that a fine is the number of penalty units times the dollar value of a unit, and that the dollar value used is the one in force when the offence or contravention was committed.
As at October 2026, one penalty unit is worth $364 for offences committed on or after 1 July 2026. For offences between 7 November 2024 and 30 June 2026 it was $330. The value is set under the Crimes Act 1914.
Criminal penalties
Schedule 3 of the Act gives 15 years’ imprisonment as the penalty for each limb of section 1043A, and for sections 1041A, 1041B(1), 1041C(1), 1041D, 1041E(1), 1041F(1) and 1041G. Where a prison term of 10 years or more is the only penalty specified, sections 1311B and 1311C work out the fine.
| Who | Maximum under the Act | In dollars |
|---|---|---|
| An individual | 15 years’ imprisonment, a fine, or both. Under section 1311B(4), the maximum fine is whichever is higher: 4,500 penalty units, or three times the benefit derived and detriment avoided, if the court can work that out. | 4,500 × $364 = $1,638,000, or three times the benefit if higher |
| A body corporate | A fine of the greatest of 45,000 penalty units; three times the benefit derived and detriment avoided; and 10% of annual turnover for the 12 months ending at the end of the month the offence was committed or began. | 45,000 × $364 = $16,380,000, or a higher figure from either of the other two measures |
“Benefit derived and detriment avoided” is defined as the total value of benefits obtained, and detriments avoided, by anyone, so far as they can reasonably be put down to the offence.
A worked example, with invented figures
An individual is convicted of insider trading for conduct after 1 July 2026. The court finds the benefit derived and detriment avoided was $300,000. Three times that is $900,000. The penalty-unit figure is 4,500 × $364 = $1,638,000. The maximum fine is the greater of the two: $1,638,000.
Change one figure: if the benefit had been $700,000, three times it would be $2,100,000, which is more than $1,638,000, so the maximum fine would be $2,100,000. Either way the court can also impose a prison term of up to 15 years.
Civil penalties
Section 1043A and sections 1041A to 1041D are also civil penalty provisions, in the Act’s “financial services” category. A court first declares the contravention, and can then order a pecuniary penalty if the contravention materially prejudiced the people who bought or sold the products, or the issuer or its members, or was serious.
| Who | Maximum under section 1317G | In dollars |
|---|---|---|
| An individual | The greater of 5,000 penalty units and three times the benefit derived and detriment avoided, if the court can work it out. | 5,000 units, about $1.82 million |
| A body corporate | The greatest of 50,000 penalty units; three times the benefit; and 10% of annual turnover, capped at 2.5 million penalty units. | 50,000 units, about $18.2 million; turnover cap about $910 million |
Proceedings for a declaration, a pecuniary penalty order or a compensation order must start within 6 years after the contravention.
Consequences beyond the fine
- Disqualification. A person convicted of an offence against the Act punishable by more than 12 months’ imprisonment is automatically disqualified from managing corporations for 5 years from conviction or, if they serve a prison term, for 5 years from release. On application by ASIC, a court may extend that period by up to an additional 15 years.
- Compensation. A court can order a person who contravened a financial services civil penalty provision to compensate anyone who suffered damage as a result. For insider trading in Division 3 financial products other than derivatives, where the insider knew, or was reckless as to whether, the information was not generally available and might be material, section 1043L also lets the issuer, and a buyer or seller who did not have the information, recover the difference between the trade price and the price the products would likely have traded at if the information had been generally available.
- Giving up the gain. Section 1317GAB lets a court order someone “to pay the Commonwealth an amount equal to the benefit derived and detriment avoided because of a contravention of a civil penalty provision”. This is a relinquishment order. ASIC can apply for one within 6 years after the contravention.
- Orders about the products. Where a court finds insider trading, it can restrain dealings in the products, direct their disposal, vest them in ASIC, cancel an agreement to buy or sell them, or cancel a financial services licence.
An outcome in a market manipulation case is described in the guide to market manipulation.