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← Director Penalty Notices

“I’ve received a Director Penalty Notice”

A Director Penalty Notice (DPN) is a notice from the Australian Taxation Office that can make you, as a director, personally liable for certain tax debts of your company. The clock matters — act now.

An accountant walks a company director through paperwork at a bright office desk

01 · What it means

In plain English

A director of a company must make sure the company meets its PAYG withholding and Superannuation Guarantee Charge (SGC) obligations. If your company does not meet these payments in full by the due date you can become personally liable for director penalties for the unpaid amount.

A DPN typically gives you 21 days to take action to avoid personal liability. A ‘lockdown DPN’ means there is no escaping liability once the DPN is served on the director. If you don’t have the correct details recorded with ASIC, you can’t claim the DPN was sent to the wrong address.

If you do get a DPN, watch out for all the phone calls and letters from people who try to sell you easy ways out.

02 · Your options

There’s usually more than one way through

  • Get advice immediately

    Within the 21 days, the options that may remove personal liability under a non-lockdown DPN are limited and formal. A qualified adviser can tell you which apply to you.

  • Formal restructuring or administration

    Depending on your circumstances, a formal process (for example Small Business Restructuring or Voluntary Administration) may be relevant. These have strict eligibility rules.

  • A Director’s Advocate

    A Director’s Advocate supports you — the director — through the process, when every other professional involved has duties that may conflict with yours.

03 · This week

What to do this week

  • Note the date on the DPN and count 21 days. Put it in your calendar today.
  • Find out whether it is a lockdown DPN (ask an adviser if unsure).
  • Gather recent BAS, STP and super records.
  • Speak to a qualified adviser before you agree to anything with anyone who cold-calls you.

The information on this website is general in nature and does not take into account your circumstances. It is not legal, financial or tax advice.