The recent case of Melbourne Linh Son Buddhist Society Inc v Gippsreal Ltd [2017] VSCA 161 (Melbourne Linh) may have served to revisit (and possibly change) the Australian legal landscape regarding penalties.  In Melbourne Linh, the Court of Appeal found that a loan establishment fee of $26,625 constituted a penalty in circumstances where the fee did not represent the protection of the respondent’s legitimate commercial interests. The case is interesting because it potentially paves the way for Courts to, in future cases, adopt a broader approach when determining penalty cases.