New legislation will significantly increase criminal and civil penalties for corporate and financial sector misconduct.

Individuals will face a maximum of 15 years imprisonment instead of five years for criminal behaviour, and may be fined the greater of $945,000 or three times any benefit gained.

Maximum criminal penalties for corporations will rise from a $210,000 fine to the greater of a $9.45 million fine, three times the benefit gained or 10% of annual turnover.

The maximum civil penalty for individuals will rise from $200,000 to the greater of $1.05 million or three times the benefit gained. Corporations will pay the greater of $10.05 million, three times the benefit gained or 10% of annual turnover, capped at $525 million. The previous penalty was $1 million.

The range of offences subject to civil penalties will increase, and courts will be able to seek additional remedies to strip illegally obtained profits from offenders.

The legislation has passed the Federal Senate and will go to the House of Representatives for debate.