Jail time for individuals found guilty of misconduct in the financial sector will be boosted to up to 10 years under draft laws introduced to federal parliament.

Sparked by the banking royal commission, the legislation also increases civil penalties for individuals by more than five-fold ($1.05 million fine) and ten-fold ($10.5 million fine) for corporations.

‘This is not only necessary to ensure individuals and corporations who do the wrong thing are appropriately punished, but it’s also an essential part of rebuilding community trust in the financial services industry,’ Treasurer Josh Frydenberg told the lower house on Wednesday.