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High Severity

Regulator Profits from Penalties It Imposes

The Division collects administrative penalties it issues, creating a financial incentive structure where the enforcer benefits from enforcement—penalties are paid "to the Division" rather than to a neutral treasury. This violates basic regulatory independence principles and creates perverse incentives for aggressive enforcement against businesses. Combined with undefined "Directions or Orders" that trigger penalties and 100 penalty units per day accumulation with no proportionality review, businesses face unlimited financial exposure from a regulator with financial motivation to maximize penalties. The pathway to criminal liability in 75 for non-compliance compounds this by threatening management with criminal records.