It has been reported that the government is considering a huge change to penalties for late reporting and fraudulent reporting. Examples being considered are:
If Single Touch Payroll isn't reported, then not allowing the tax deduction for the whole cost of salaries not reported.
BAS not reported, not allowing the tax deduction of any expenses that should have been reported in those missing BAS reports.
If taxable income is understated fraudulently or no reasonable care take, then the expenses related to that income wouldn't be claimable.
At the moment these are just proposals being put together by the ATO and consultants, if implemented this would be a huge change and a big stick approach to tax avoidance. These penalties would be on top of the current penalties I would presume, putting a huge penalty for not reporting correctly on time.