Corporate criminals could face 15 years in jail as fines double to more than $500 million

Corporate crooks are set to face as much as 15 years’ jail and the maximum fine on dodgy companies will more than double to $500 million-plus after the Senate passed new legislation.

Corporate crooks are set to face as much as 15 years’ jail and the maximum fine on dodgy companies will more than double to $500 million-plus after the Senate passed new legislation.

The Government had wanted caps of 10 years and $210 million, while Labor had originally sought an amendment that could have seen fines run into the billions of dollars, along with prison sentences of up to 15 years. Earlier this week it reduced the maximum financial penalty it was seeking to $525 million.

Treasurer Josh Frydenberg said the legislation — which should pass the House of Representatives next week and become law — would update penalties that in some cases have not changed for two decades. He also attacked Labor for its shifting positions.

“After doing nothing for six years in government to better protect Australian consumers from corporate and financial sector misconduct, Labor suddenly — and without consultation — pulled another political stunt by seeking to uncap the maximum civil penalty for corporations,” Mr Frydenberg said.

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Treasurer Josh Frydenberg during Question Time in the House of Representatives Chamber at Parliament House in Canberra. Picture: Kym Smith

“Upon realising the recklessness of their idea this week, Labor backflipped, shelving their plan.”

Labor said it was the Government which had dragged its heels and capitulated.

“The Liberals did everything they could to continue their protection racket for the big banks but in the end they gave up — they simply didn’t have the numbers,” Labor’s treasury spokesman Chris Bowen said.

“Because of Labor, if banks break the law they will now face half a billion dollar penalties and even longer jail time.

“The Liberals never wanted these tough penalties. They voted against them in the House of Representatives, they spent months trashing them in the media, and only agreed to them at the last minute in order to avoid an embarrassing defeat in the Senate.”

The corporate regulator ASIC, which was heavily criticised by the financial services royal commission for going soft on crooked companies, said the bill’s passage through the Senate put it in a stronger position.

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ASIC’s Daniel Crennan. Picture: Kym Smith

ASIC Deputy Chair Daniel Crennan said that as things stood “core obligations owed by banks and other financial services licensees to the citizens of Australia did not carry any penalties.

“Without this bill very significant aspects of the law lacked sufficient penalties to properly punish corporate wrongdoing in Australia,” Mr Crennan said.

“ASIC will now be in a stronger position to pursue harsh civil penalties and criminal sanctions against those who have breached the corporate laws of Australia.”

The new regime will not apply to what was revealed by the royal commission. It will only cover future offences.