Pay company PAYG/GST/SG or face Director Penalty Notice (DPN)
Directors personally liable for unpaid company PAYG, GST + SG via DPN regime.
Who must comply
Company directors.
What triggers it
Company PAYG/GST/SG remaining unpaid + reported (or unreported) beyond statutory windows.
When due
Standard DPN: respond within 21 days. Lockdown DPN: liability already crystallised.
Evidence required
Cash flow forecasts, board minutes, professional engagement (insolvency practitioner).
Max penalty
Personal liability for full unpaid amounts + interest
Summary
Under Subdivision 269-B Schedule 1 Taxation Administration Act, the ATO can issue a Director Penalty Notice making directors personally liable for unpaid company PAYG withholding, GST + SG. Two types: 'standard' DPN (can be remitted by paying or entering liquidation/admin within 21 days), 'lockdown' DPN (personal liability locks in if reporting overdue >3 months).
Enforced by
Source legislation
Entity types
Topics
Source: https://ato.gov.au/businesses-and-organisations/preparing-lodging-and-paying/director-penalty-regime. Rules Mate is not a law firm. Always verify against the live regulator source before acting.