Director penalties
The ATO states that directors can become personally liable for unpaid PAYG withholding, GST and super guarantee charge amounts.
Director penalty notice Australia
A DPN can shift specified company tax liabilities onto the director personally.
The ATO can issue a Director Penalty Notice in relation to specified unpaid company liabilities. If you receive one, time matters and qualified professional advice should be obtained immediately.
What a DPN means
Personal director exposure is different from ordinary company debt.
Recovery action
Once a DPN is issued, the ATO can pursue recovery of director penalties using available recovery mechanisms.
Time-sensitive response
ASIC advises directors who receive a DPN to seek professional advice immediately because failure to take appropriate steps within the relevant period can expose the director personally.
Reporting history
The consequences can depend on the nature of the liability and lodgment history. A live notice requires advice based on the actual facts.
Business viability
Alongside the legal response, management needs an honest view of whether the company can meet current obligations and trade safely.
Qualified specialists
Legal, tax and insolvency professionals should lead advice on a specific DPN. My role is limited to commercial coordination and operating support.
Related pages
Understand the wider ATO debt position.
Official references
ASIC insolvency guidance for directors →
The ATO outlines director penalties and recovery action. ASIC separately recommends directors seek professional advice immediately if they receive a DPN.
ATO DPN information →ASIC insolvency guidance for directors →
Urgent disclaimer
This page is general information only and is not legal, tax or insolvency advice. If you have received a DPN, contact an appropriately qualified professional immediately.
Commercial coordination
Need the operating position organised around the specialist response?
I can help map cash flow, systems and operating decisions while qualified advisers handle the DPN itself.