{"id":"penalty-units-act-2009","name":"Penalty Units Act 2009","slug":"penalty-units-act-2009","collection":"act","jurisdiction":"nt","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":30377,"registerId":"nt-penalty-units-act-2009-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Penalty Units Act 2009","content":"NORTHERN TERRITORY OF AUSTRALIA\nPENALTY UNITS ACT 2009\nAs in force at 1 July 2022\nTable of provisions\n1 Short title ......................................................................................... 1\n2 Commencement .............................................................................. 1\n3 Definitions ........................................................................................ 1\n4 Monetary amount of penalty ............................................................ 1\n5 Indexation of monetary value of penalty unit ................................... 2\n6 Prescribing new monetary value of penalty unit .............................. 3\n7 Regulations...................................................................................... 3\n8 Repeal ............................................................................................. 3\n9 Transitional matters ......................................................................... 3\nENDNOTES\n\n\n\nNORTHERN TERRITORY OF AUSTRALIA\n____________________\nAs in force at 1 July 2022\n____________________\nPENALTY UNITS ACT 2009\nAn Act to provide for calculating the monetary amount of penalties\nexpressed as penalty units\n1 Short title\nThis Act may be cited as the Penalty Units Act 2009.\n2 Commencement\nThis Act commences on the date fixed by the Administrator by\nGazette notice.\n3 Definitions\nIn this Act:\npenalty includes any of the following:\n(a) a fine or penalty imposed under an Act for an offence;\n(b) an amount that may be paid under an infringement notice\nissued in relation to an offence instead of the penalty that may\notherwise be imposed for the offence;\n(c) a civil penalty (however described).\nprescribed value means $130 or, if a regulation prescribes a\nhigher amount, the higher amount.\n4 Monetary amount of penalty\n(1) If a penalty is expressed as a number of penalty units, the monetary\namount of the penalty is obtained by multiplying the number of\npenalty units by the prescribed value.\nNote for subsection (1)\nThe number of penalty units may be a whole number or a decimal or fractional\nnumber.\n(2) In its application to an Act, subsection (1) is subject to a contrary\nintention in the Act.\n\nPenalty Units Act 2009 2\n5 Indexation of monetary value of penalty unit\n(1) The monetary value of a penalty unit is:\n(a) $162 for the financial year ending on 30 June 2023; and\n(b) the amount calculated in accordance with subsections (2)\nand (3) for the financial years following 30 June 2023.\n(2) The formula is:\nA = B x C\nD\nwhere:\nA is the monetary value of a penalty unit for the financial year for\nwhich the calculation is made (the relevant financial year) (subject\nto rounding, if necessary, in accordance with subsection (3)).\nB is $130.\nC is the average of the CPI figures for Darwin for each of the\n4 quarters of the calendar year immediately preceding the relevant\nfinancial year, as published most recently before 1 April\nimmediately preceding the beginning of the relevant financial year,\nrounded to one decimal place.\nD is the average of the CPI figures for Darwin for each of the\n4 quarters of the calendar year 2008, as most recently published\nbefore 1 April immediately preceding the beginning of the relevant\nfinancial year.\n(3) If the monetary value of a penalty unit, calculated in accordance\nwith subsection (2), increases but is not a multiple of $1, the\namount must be rounded down to the nearest multiple of $1.\nExample for subsection (3)\nBy calculating in accordance with the formula in subsection (2), A is equal to\n$132.20, which is not a multiple of $1. Therefore, A is rounded down to the\nnearest multiple of $1 which gives a value of $132.\n(5) In this section:\nCPI figure for Darwin means the Consumer Price Index: All\nGroups Index Number for Darwin published by the Australian\nStatistician under the authority of the Census and Statistics\nAct 1905 (Cth).\nquarter, of a calendar year, means the period of 3 months ending\nat the end of March, June, September or December in that year.\n\nPenalty Units Act 2009 3\n6 Prescribing new monetary value of penalty unit\n(1) If the monetary value of a penalty unit determined under section 5\nis an amount of $131 or any higher multiple of $1, the higher\namount must be prescribed by regulation as the monetary value of\na penalty unit.\n(2) A change in the prescribed value has no effect until the regulation\ntakes effect.\n(3) An increase in the prescribed value of a penalty unit does not apply\nin relation to any offence committed before the increase takes\neffect.\n7 Regulations\nThe Administrator may make regulations under this Act.\n8 Repeal\nThe following Acts are repealed:\n(a) Penalties Act 1999 (Act No. 2 of 1999);\n(b) Penalties Amendment Act 2002 (Act No. 15 of 2002).\n9 Transitional matters\n(1) Despite section 8, the repealed Act continues to apply to an act\ncommitted or an omission made before the commencement that\nresults in a liability for a penalty.\n(2) In this section:\ncommencement means the commencement of this section.\nrepealed Act means the Penalty Units Act 1999 as in force\nimmediately before the commencement.\n\nENDNOTES\nPenalty Units Act 2009 4\nENDNOTES\n1 KEY\nKey to abbreviations\namd = amended od = order\napp = appendix om = omitted\nbl = by-law pt = Part\nch = Chapter r = regulation/rule\ncl = clause rem = remainder\ndiv = Division renum = renumbered\nexp = expires/expired rep = repealed\nf = forms s = section\nGaz = Gazette sch = Schedule\nhdg = heading sdiv = Subdivision\nins = inserted SL = Subordinate Legislation\nlt = long title sub = substituted\nnc = not commenced\n2 LIST OF LEGISLATION\nPenalty Units Act 2009 (Act No. 16, 2009)\nAssent date 18 June 2009\nCommenced 1 July 2009 (Gaz S30, 26 June 2009)\nPenalty Units Amendment Act 2013 (Act No. 12, 2013)\nAssent date 29 May 2013\nCommenced 29 May 2013\nRevenue Legislation Amendment and Repeal Act 2022 (Act No. 15, 2022)\nAssent date 30 June 2022\nCommenced 1 July 2022 (s 2)\n3 GENERAL AMENDMENTS\nGeneral amendments of a formal nature (which are not referred to in the table\nof amendments to this reprint) are made by the Interpretation Legislation\nAmendment Act 2018 (Act No. 22, 2018) to: ss 1 and 9.\n4 LIST OF AMENDMENTS\nlt amd No. 15, 2022, s 7\ns 5 amd No. 12, 2013, s 3; No. 15, 2022, s 8\ns 6 amd No. 15, 2022, s 9","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":true,"description":"The Act’s scope has been extended from a simple conversion rule to include an automatic indexation mechanism and a regulatory prescription step. Section 5 (as amended) adds a CPI‑based formula and a fixed 2022–23 value ($162). Section 6 requires that if the calculated value is $131 or more the higher amount be prescribed by regulation and makes such increases effective only when the regulation takes effect, with non‑retroactivity for prior offences (s 5; s 6(1)–(3)). The Act also repeals the prior Penalties Acts and preserves transitional application for pre‑commencement acts or omissions (s 8–9)."},"complexity_factors":["Indexation formula uses CPI averages for Darwin and a 2008 base year, requiring data lookup and a calculation (s 5(2)).","A fixed transitional value is set for a specific financial year ($162 for FY ending 30 June 2023) alongside the ongoing formula (s 5(1)).","Rounding rule reduces fractional results by rounding down to the nearest whole dollar (s 5(3)).","Regulatory trigger: calculated increases of $131 or more must be prescribed by regulation before taking effect (s 6(1)–(2)).","Non-retroactivity: increases do not apply to offences committed before the regulation takes effect (s 6(3)).","Default prescribed value in the definitions ($130) but subject to regulation and the indexation mechanism (s 3, s 5).","Section 4(2) permits a contrary intention in the Act where penalty units are applied, creating possible exceptions (s 4(2))."],"plain_english_summary":"### What this law does\n\nThis Act sets the way monetary penalties that are written in \"penalty units\" are converted into dollars in the Northern Territory. Instead of listing a dollar amount in every offence provision, many laws say a breach is worth a number of penalty units. This Act tells you how to turn those penalty units into a dollar figure.\n\nMechanically:\n- Section 4(1) says the dollar amount of a penalty expressed in penalty units is the number of penalty units multiplied by the prescribed value (the dollar value of one penalty unit). Section 4(2) preserves any contrary rule that appears in the Act where the penalty is used.\n- Section 3 defines the default prescribed value as $130 unless a regulation sets a higher amount.\n- Section 5 fixes the monetary value for the 2022–23 financial year at $162, and sets an indexation formula for later years using the Darwin Consumer Price Index (CPI) averages and a 2008 base. Calculated increases are rounded down to the nearest whole dollar (s 5(1)–(3)).\n- Section 6 requires that if the calculated monetary value is $131 or a higher whole dollar amount, the higher amount must be set by regulation before it takes effect. The regulation must commence for the new amount to apply (s 6(1)–(2)), and increases do not apply to offences committed before the regulation takes effect (s 6(3)).\n- The Administrator may make regulations under the Act (s 7). The Act also repeals the earlier Penalties Acts and contains transitional rules preserving their application to acts or omissions before commencement (s 8–9).\n\nWho pays and who decides\n- Who pays: a person or entity liable for a fine, an infringement notice payment, or a civil penalty under any Act that expresses penalties in penalty units (see definition of \"penalty\" in s 3 and the calculation rule in s 4(1)).\n- Who decides: the monetary value is set by the statutory formula in s 5 and by regulation where required. The Administrator makes regulations (s 7), and the prescribed value only changes when a regulation prescribing a higher amount takes effect (s 6(2)). The Administrator also fixes commencement by Gazette notice (s 2).\n\nWhy it matters (official purpose and mechanical trade-offs)\n- The Act’s stated mechanism is to convert penalty units into dollar figures consistently across laws. The official rationale for indexation (in s 5 and the related amendment history) is to update the dollar value over time rather than leave it fixed.\n- Mechanical trade-offs and implementation points to note: the Act ties increases to the Darwin CPI (s 5(2)), so local inflation data determine the change. A calculated increase must be prescribed by regulation to operate (s 6(1)–(2)), and increases do not apply retrospectively to past offences (s 6(3)). The rounding rule (s 5(3)) reduces fractional-dollar results by rounding down to the nearest whole dollar.\n\nStructural features and their mechanical consequences\n- Multiplicative rule: Section 4(1) makes penalty dollars equal to (penalty units) × (prescribed value). This means any change to the prescribed value changes the dollar amount for every offence expressed in penalty units.\n- Indexation formula: Section 5 prescribes the formula using the average Darwin CPI for the calendar year immediately preceding the relevant financial year, compared to 2008 CPI averages, and requires rounding down to the nearest dollar (s 5(2)–(3)). For 2022–23 the Act fixes a specific amount of $162 (s 5(1)(a)).\n- Regulatory trigger and timing: If the formula produces $131 or more, section 6(1) requires the higher amount to be prescribed by regulation. Section 6(2) makes prescription by regulation the event that puts the new amount into effect; section 6(3) prevents the increase applying to offences committed before the regulation takes effect.\n- Legislative override: Section 4(2) allows an Act that uses penalty units to specify a different conversion rule if it expresses a contrary intention.\n\nPractical effects stated in the text\n- The dollar amount collected per offence increases if the prescribed value rises (mechanically, because of s 4(1) and s 5). The dollar amount of penalties increases when the prescribed value rises, which may alter compliance incentives (this is a factual mechanical consequence of changing the prescribed value under s 4(1) and s 5).\n\nWhere discretion and administrative steps occur\n- The Administrator has power to make regulations under s 7, to fix commencement by Gazette notice (s 2), and regulations are required to give effect to calculated increases of $131 or more (s 6). Those are the points where administrative timing and discretion affect when indexed amounts become operative.\n\nKey citation points: s 3 (definitions and default prescribed value), s 4(1)–(2) (multiplication rule and contrary intention), s 5(1)–(3) (indexation formula, fixed 2022–23 value, rounding), s 6(1)–(3) (regulation to prescribe higher value, timing, non-retroactivity), s 7 (regulations), s 8–9 (repeal and transitional matters)."},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose: establishing a mechanism for calculating monetary penalties from penalty units. The 2022 amendments updated the indexation formula and base values but did not expand the Act's scope beyond penalty calculation."},"complexity_factors":["Mathematical formula with variables requiring external data (CPI figures for Darwin)","Temporal calculations involving financial years, calendar years, and quarterly data","Rounding rules with specific conditions (round down to nearest dollar)","Interaction between statutory formula and delegated legislation (regulations)","Transitional provisions preserving old law for pre-commencement offences","Subject-to-contrary-intention clause creating conditional application"],"plain_english_summary":"**What this law does:**\n\nThis Act sets up a simple system for converting \"penalty units\" into actual dollar amounts when someone breaks the law in the Northern Territory.\n\n**Why penalty units matter:**\n\nInstead of writing specific dollar amounts in every law (like \"a fine of $500\"), Parliament writes \"5 penalty units.\" This Act tells you what one penalty unit is worth in real money.\n\n**How it works:**\n\n- **The base value:** One penalty unit equals **$130**, unless regulations set a higher amount.\n- **Automatic increases:** The value goes up each year based on inflation (using Darwin's Consumer Price Index or CPI — a measure of how much everyday things cost). The formula compares current prices to 2008 prices.\n- **Rounding down:** If the inflation calculation gives an awkward number like $132.20, it gets rounded down to $132.\n- **Locking in higher values:** Once inflation pushes the value to $131 or more, that new amount must be written into regulations.\n- **No backdating:** If the penalty unit value goes up, it doesn't apply to offences committed before the increase.\n\n**Who it affects:**\n\n- **Anyone fined in the NT** — whether for criminal offences, traffic infringements, or civil penalties (fines for breaking civil rules, not criminal laws).\n- **Courts and police** — who need to calculate what offenders actually pay.\n- **Lawmakers** — who can write penalties as \"units\" instead of dollar figures, knowing this Act handles the maths.\n\n**Why it matters:**\n\nThis keeps fines fair over time. Without it, a $500 fine written in 2009 would still be $500 in 2024, even though $500 buys less than it used to. By linking penalties to inflation, the punishment stays proportionate without Parliament having to update hundreds of laws individually.\n\n**Key exception:**\n\nIf a specific law says it calculates penalties differently, that law wins (section 4(2))."}},"importantCases":[],"_links":{"self":"/api/acts/penalty-units-act-2009","history":"/api/acts/penalty-units-act-2009/history","analysis":"/api/acts/penalty-units-act-2009/analysis","conflicts":"/api/acts/penalty-units-act-2009/conflicts","importantCases":"/api/acts/penalty-units-act-2009/important-cases","documents":"/api/acts/penalty-units-act-2009/documents"}}